Unemployment and Social Security Insurance

In: Social Issues

Submitted By tfftheu
Words 3082
Pages 13
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Introduction
The initial idea of this was to look at how Social Security and Unemployment Insurance work and explain that. The initial hypothesis was that government insurance programs work as a result of the United States Government forcing citizens to pay into these systems threw taxation. To do start this project I began by reading in the text book used in Macroeconomics at Virginia Statue University and the text book used in all Richard Bland College’s Economics courses.
The Initial Hypothesis was based off experience in working and paying into Social Security and speaking with employers on what they pay into these programs on there employees behalf. Knowing that an employee was forced to pay 7.5% of his or her income into Social Security and employers must match a portion of those payments. In return for these payments Americans are told that they will receive payments in the future as retirement income or payments made if the person becomes disabled. In return Americans have a sense of security that the Government will take care of them. (Shipman, 2011) The Unemployment Insurance hypothesis was also based on experience speaking with employers. In different States they pay out different amounts based on the wages they pay there employees. Unemployment insurance pays people a portion of their previous wage if they get laid off or lose their job at no fault of their own. The program is designed to help people get by when they are looking for new employment. The hypothesis was that Unemployment insurance causes people to be less motivated to find a new job quickly.
In putting both of the two hypotheses together one central idea can be seen. Both Unemployment and Social Security Insurance encourage people to be less self reliant and incentivizes people to be unproductive and reliant on the Government rather than…...

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