Social insurance programs
The main social insurance programs like Social Security, Medicare, and unemployment compensation are funded by a payroll tax on the earnings of individuals who may receive benefits. Do you think the social insurance programs are effective? How are social insurance programs affected by the socioeconomic and political forces? Explain your answers.
Social insurance, contributory schemes providing compensatory support in the event of contingencies such as illness, injury, disability, death of a spouse or parent, unemployment, old age, and shocks affecting livestock/crops. Social insurance plays a critical role for workers and families, both in times of crises, as exhibited by the pandemic and ensuring economic recession, and in normal economic times. Social insurance has been shown to dramatically reduce rates of poverty in the U.S., especially among children and older adults. The social insurance system also helps buffer the economy when growth falters, supporting consumer purchasing power when income growth is weak.
