Police discuss

Article:

Hiltzik, Michael. 2019. “How the Rich are Getting an Undeserved Windfall from Social Security.” Los Angeles Times, December 3.

Questions:

  1. What is the actuarial adjustment in Social Security? Based on the article, in light of the actuarial adjustments in place, how have demographic changes (and in particular changes in life expectancy among people in different income groups) made Social Security benefits less progressive than they were in the past?
  2. While not discussed explicitly in the article, there is a cap on income subject to Social Security withdrawals. Based on our discussion in class, why does the cap exist? How does the existence of the cap further reduce the progressivity of Social Security?
  3. Besides recalculating the actuarial adjustments, how does the author of the article propose changing the program to make it fairer? Can you think of other reforms – big or small – that you think would make the program fairer? Describe at least one reform you think should be implemented.
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