Which of the following policies would dramatically and permanently reduce government outlays? Choose one or more:...
Which of the following policies would dramatically and permanently reduce government outlays? Choose one or more:
A. reducing the number of people eligible for Medicare and Medicaid by half
B. reducing the number of overseas military bases
C. lowering wages for workers involved in all government construction projects
D. means-testing Social Security
E. lowering Medicare and Social Security taxes
Homework Answers
Correct option: (D) means testing Social Security
Reason: Means testing Social Security implies checking the annual incomes of Social Security beneficiaries and based on that income, determining whether they'd receive reduced benefits, or no benefits at all.
It re-determines individuals for their Social security benefit eligibility and in many cases leads to reduction or elimination of many such recipients.
Thus, in case Social Security is means tested, many recipients get eliminated or benefits get reduced. This leads to dramatically and permanently reduced government outlays or expenditures.
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In 1970, only 5% of U.S. workers had been born abroad. By 2016,
however, 17% of American workers had immigrated to the United
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Figure 1: Percentage of U.S. labor force that is
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Figure 1: Percentage of U.S. labor force that is
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