The U.S.Social Security program
A)is a redistribution program that collects taxes from current workers to provide pensions for current retirees
B)is a redistribution program that collects taxes from retired individuals with high incomes and uses them to provide pensions for individuals with low incomes
C)is a pay-as-you-go program in which workers' contributions are invested to provide them with income at retirement
D)is funded by earnings on its investment portfolio
E)is funded through money creation by the Federal Reserve

Question

Quizplus · Accepted Answer

Social Security is a redistribution program that collects taxes from current workers to provide pensions for current retirees. The taxes collected from current workers are not invested but instead are used to pay the pensions of retirees. This is known as a pay-as-you-go program.

The U.S.Social Security Program