Internet Exercises

1. In reading this chapter as well as others, you have learned a great deal about Social Security benefits. This exercise gives you a chance to show what you have learned about the issues surrounding Social Security (http://www.aarp.org). Go to the AARP's website and link to Legislative Issues, then to Economic Security and Work. Select "Social Security Reality Check" and answer the following questions:

1. Take the 9-question Social Security I.Q. Quiz, then check your answers.
2. Read the 4 questions about Social Security. Should citizens conclude that the Social Security system is broke? Why or why not?
3. Why do the baby boomers fear that Social Security benefits won't be available to them? Is their fear justified? Explain.
4. Explain the meaning of the following statement: "To move to a system of individual investments, you would have to contribute twice."
5. Explain how Social Security is benefiting you right now.

2. The website of the Federal Intra-agency Forum on Age-Related Statistics (http://www.agingstats.gov/) provides much interesting information on older Americans. Go to the website and link to Older Americans 2000: Key Indicators of Well-Being; then link to Economics. Read the information on income distribution, sources of income, and net worth and answer the following questions.

1. Has the percentage of older Americans living in extreme poverty changed greatly over time?
2. Between 1962 and 1998, what happened to the percentage of Americans age 65 and older who fell into the low income group?
3. Has the proportion of income older Americans derive from their earnings increased recently?
4. Explain the major shift that has taken place recently in employer-provided pensions.
5. What percentage of income does Social Security account for among older Americans in the lowest fifth of the nation's income distribution?

3. The United States Census Bureau Web site (www.census.gov) provides the public with information pertaining to population, income, and poverty, among other things. Under the heading "People," click on "Income." Then scroll down and click on "Frequently Asked Questions." Read the questions and answers, and then answer the following questions:

1. What is the difference between a household and a family?
2. What is the median household income for a Hispanic household?
3. What did the Census Bureau say was the median annual income for a person in an executive position?
4. How much money does a woman earn compared to a man, according to the Census Bureau?

4. The Social Security Administration (http://www.ssa.gov/pubs/10055.html) is a good site for finding information on social security. Read the article "Will Social Security Be There For You?" Then answer the following questions:

1. What does social security do? How many people are protected by social security?
2. What are the two philosophies on which social security payments are based?
3. What percentage of retirees live in poverty? Social Security is the main income for how many retirees?
4. Social Security is equivalent to how much life insurance?