Understanding Social Security

What is a common misconception about Social Security?

• It is a new program.

• It is only for the wealthy.

• It is a Ponzi scheme.

• It is funded by donations.

How does Social Security differ from a Ponzi scheme?

• It is a pay-as-you-go system.

• It benefits only the top investors.

• It collapses after a few months.

• It promises high returns to new investors.

What is unique about Social Security's forecasting?

• It uses a 10-year forecast.

• It uses a 5-year forecast.

• It uses a 75-year forecast.

• It does not use any forecast.

Why was a surplus built up in Social Security?

• To cover the retirement of baby boomers.

• To invest in the stock market.

• To fund government projects.

• To provide bonuses to employees.

What is a reason for the depletion of Social Security's surplus?

• Higher taxes.

• Increased government spending.

• Income inequality.

• Decreased population.