Understanding Social Security and Its Impact

What was the primary purpose of creating Social Security in the 1930s?

• To fund military expenses

• To support infrastructure development

• To provide old age pensions

• To reduce national debt

How is Social Security funded?

• Through federal income tax

• Through state taxes

• Through FICA contributions

• Through sales tax

What is the main purpose of Medicare?

• To support education funding

• To offer unemployment benefits

• To reduce housing costs

• To provide health insurance for the elderly

How is Medicaid funded?

• Through private donations

• Entirely by state governments

• Half by federal and half by state governments

• Entirely by the federal government

What has been a significant issue with the Social Security trust fund?

• It is used to backstop government spending

• It is invested in risky stocks

• It is only available to government employees

• It is overfunded

What is one proposed solution to increase Social Security funding?

• Lowering the retirement age

• Increasing sales tax

• Raising the income cap for FICA contributions

• Reducing benefits for retirees

How do undocumented workers contribute to Social Security?

• They contribute through state taxes

• They receive benefits without paying

• They pay FICA but do not receive benefits

• They do not contribute at all

What is a potential risk of privatizing the Social Security trust fund?

• More government borrowing

• Increased government control

• Loss of guaranteed benefits for retirees

• Higher taxes for the wealthy

What is a political challenge in protecting Social Security?

• Overfunding of the trust fund

• Desire to reduce taxes for the wealthy

• Excessive benefits for retirees

• Lack of public interest

What is the relationship between Social Security and Medicare?

• They are only available to government employees

• They serve the same purpose

• They are both optional programs

• They are funded by the same source