Questions

Explain verbally and graphically why many economists argue that Social Security has had a negative effect on the capital stock.

What effect does the baby boom have on the worker-to-retiree ratio in the Social Security system, and how has this been changing over the decades?

Explain why Social Security has maintained political support over the years, in terms of young workers (Y), middle-aged workers (M), and retirees (O). What are some of the proposals discussed in class for solving Social Security-related problems?

Some economists argue that, given the plethora of savings instruments that exist in financial markets today, that Americans save too much relative to the golden rule level of saving. Do you agree? This article on the Social Security Trustees report suggests that the system is in better shape than given credit. This article considers the importance of immigration for maintaining the part of the population that pays into the system. And here's Jay Bookman's less-than-positive take on Social Security, from the Atlanta Journal-Constitution.

Give examples of private and public methods of capital accumulation. What is public capital? What is industrial policy?

What has happened to the rate of productivity growth over the past 40 years? How might you explain this phenomenon?

How do the short run and long run differ in macroeconomics, and why is this relevant to the study of the business cycle. Also, how does it relate to the length of a business cycle correction?

Give an example of a price that is sticky in the short run and flexible in the long run.