carcass wrote:
According to those in favour of privatisation of Social Security in the US, the current system is impossible to sustain. Decades ago, there were many more workers for every recipient but now the situation has reversed. Sooner or later, the fund will not be able to meet its obligations, because there will be more payments going out, than income coming in. Privatizing the system for the future recipients, while gradually phasing out the system for current and near-term recipients, is probably the best way to keep the system viable.
The answer to which of the following questions would be most useful in determining whether privatization of Social Security in the US would be a good idea?
(A) Whether privatization has proved successful for other government provided services such as employee provident funds
(B) Whether the population of the US is likely to increase significantly in the future
(C) Whether the growth in the number of workers is the US is likely to outstrip the growth in the number of dependents in the future
(D) Whether privatization of social security will lead to large scale protests by US citizens
(E) Whether taking loans can help the Social Security system tide over the problem of the reduction in funds coming in to the system
Official Explanation
Answer: C
The argument assumes that in the US the number of dependents in the future will be far more than the number of earning workers, a situation that will lead to the social security funds drying up. However, if this assumption is not true, then the Social Security system could continue working as it has been over the years. C points out this fact and is the correct answer.
(A) Whether privatization has proved successful for other services has no bearing on whether privatization will work for the Social Security system.
(B) The problem is not the population growth rate but the ratio between earners and dependents. As long as this ratio remains favourable, an increase in population should not make any difference.
(C) The correct answer.(D) This is not the basis of the argument’s conclusion.
(E) Taking loans can provide a short-term solution but the problem will remain in the long term.