The Graying of America

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1.How do payroll taxes levied on the earnings of workers affect their decision about how much leisure they consume? Americans during our time are living much longer and the payroll taxes levied on the earnings of the workers are not going to be enough to pay for those who are retiring. The affects of the decision about how much leisure they may consume will depend on if the real wages keep pace with the benefits offered in retirement. The fossils of today are very expensive and are now consuming over one third of the federal government’s budget. It is in their rational self interest to have the government find other ways to support these programs. 2.When the government taxes younger people to pay benefits to older people, how does this affect the amount of assistance that younger people might voluntarily choose to offer old people? When the government taxes the younger people to pay benefits to Fossils some may feel it is a trade off, because one day they too will be fossils. The affect of the amount of assistance that younger people might voluntarily choose to offer fossils may consider the benefits that will be provided for them in the future and the opportunity cost the will affect them now. 3.When government taxes younger people to pay benefits to older people, how does this affect the size of the bequest that older people are likely to leave to their children or grandchildren when they die? When the government taxes younger people to pay benefits to fossils, the younger people will be heavily taxed to pay for the government entitlement programs. The grandparents will want to bequest as much as possible to families for their own benefits. These government programs are not guaranteed for every generation. The older people have the entitlement programs it is in their rational self interest to use the benefits. 4.In general, people who are more productive earn higher incomes and thus pay higher taxes. How would a change in the immigration laws that...
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