Economics
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PART I–Social Security Retirement Income Basics
(You should be able to answer the following questions using class notes and readings. You need to indicate (cite) the sources you use but avoid using direct quotations. Explain using your own words. Each response should be about 200-300 words)
1. Briefly explain the basic funding structure of the OASDI (social security) program. (wage and payroll taxes (FICA and SECA); income cap; trust fund investments)
2. Explain how retirement benefit amounts are calculated for individual workers. (eligibility (age and credits); primary insurance amount; average indexed monthly earnings; bend points)
3. Explain the basic components of the projected 75 year imbalance of the program.
PART II–Presidential Social Security Platforms
Compare and contrast the views of at least two current presidential candidates in regards to addressing the projected imbalance of the social security program. You will need to do some research to find the candiates†positions on the overall issue–make sure to include proper citation information.
First, try to find the information on the campaign websites and explain in your own words how/if they perceive a problem with the current social security program.
Next, describe the candidates†proposals to address the problems.
Finally, compare the positions of the candidates you have chosen and briefly evaluate their potential impacts on the fundamental principles of social security as a public pension.
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