In recent decades, entitlement programs have constituted a substantial portion of the United States federal budget. Social Security is the largest entitlement program in the US. An entitlement program is a government program that guarantees certain benefits to a particular group or segment of the population. The primary source of revenue for the Social Security program are payroll taxes, taxes based on earned incomes, targeted taxes, and wages from existing wage earners. Some threats to the future of the Social security program according to the chart are running out of money, and outputs exceeding inputs. One demographic trend that threatens the future of the Social Security program are the large amount of older people/baby boomers, resulting in the number of people there are now supporting/funding Social Security becoming less and less. These trends could change the eligibility for social security because if people were to work longer, less money would be paid out/more money would be paid in/the reserve would not decline as rapidly or as much.
2006-2 In recent decades, entitlement programs have constituted a substantial portion of the United States federal budget. Social Security is the largest entitlement program in the US. From the information in the chart above, and your knowledge of the US government and politics, perform the following tasks.
(a) define entitlement program
(b) What is the primary source of revenue for the Social Security program(c) Identify one threat to the future of the Social security program should the trends depicted in the chart continue(d) Describe on demographic trend that threatens the future of the Social Security program and explain how it is responsible for the threat that you identified in (c )(e) Explain how any one of the trends in the chart above would change if the age of eligibility for social security were raised.
http://apcentral.collegeboard.com/apc/members/repository/ap06_usgopo_samples_q2.pdf
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