The paper "Microeconomics Assessment" is an impressive example of a Macro & Microeconomics essay. Many government-run welfare programs usually need to change with time. Every country has one such program which needs to be privatized as it starts losing its efficiency. Mostly economic factors play a major role in the requirement of such a change. This paper shall give an in-depth analysis of the reasons why America’ s social security system should be privatized. As privatization could lead to improvement of the before the motioned program. Analysis Social Security is one of the biggest disasters in American history.
In a country that was founded on the principles of Capitalism and free markets, this socialist program limits people's pursuit of happiness. According to Pasour (1996), Social Security is, in reality, numerous associated programs combined together as one and it is usually financed by a flat-rate tax of the pay of workers. It has a specific limit. The taxes are collected in a trust fund and supposed to be for the long term, so that it may help in providing the required benefits to the needy. The foremost programs in Social Security are: as follows a retirement pension that offers monthly revenue to retired employees and their spouses according to their pay and kind of employment.
It may be considered as a pension in that the recipient is given a fixed monthly payment and the amount is according to the number of years the beneficiary lives. It even has a set of spousal and survivors' benefits. This is given to the dependents and survivors of the retried employee. A spouse is eligible for a benefit equivalent to half the retired employees only when the spouse reaches sixty-five years of age. According to Roland (2008) among everyone in the United States, there is a group of people who depend on social security the most.
But this needy group of people gets the least benefits from this program. The needy are may continuously crave for more benefits for retirement as the poor do not have much money for their survival. Due to the fact that these days Social Security has a low return rate, poverty has become something quite common in the aged population (Roland p23).
Somehow the rich have more wealth and thus they have longer life spans and get more return from social security.
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