The Social Security System Is a Pay-As-You-Go Arrangement Where Contributions

question 389

Multiple Choice

The Social Security system is a pay-as-you-go arrangement where contributions by today's workers are paid out to yesterday's retirees. If part of today's contributions go into private retirement accounts, they cannot be paid out. To make up the shortage, the government would have to borrow massive amounts of money. Hence, Social Security privatization would cause a huge increase in the federal deficit.

• A) Nonargument.
• B) Argument; conclusion: If part of today's contributions ... cannot be paid out.
• C) Argument; conclusion: Social security privatization ... federal deficit.
• D) Argument; conclusion: The Social Security System ... to yesterday's retirees.
• E) Argument; conclusion: To make up the shortage ... massive amounts of money.

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