Final answer:
Reducing government support for older adults may have option d) various negative consequences such as increasing the risk of poverty among the elderly who are financially unprepared for retirement. The 'graying' of the U.S. suggests growing pressure on Social Security and Medicare. Encouraging older adults to retain a work incentive may cost more but can be economically preferable.
Step-by-step explanation:
According to the reading by Thurow, reducing government support for older adults so that they must rely on more of their own resources may lead to various negative consequences. Programs like Social Security tend to cause workers to save less, as they expect to receive financial support from the government during retirement. This reliance on government programs can lead to a reduction in personal financial capital savings.
The information suggests that if the government reduces support too quickly, it could put elderly individuals at higher risk of poverty, particularly if they did not save enough while working. Balancing the incentive to work with the need for assistance requires careful consideration so that older adults are not left without sufficient means.
The gray population (over sixty-five years old) in the United States is increasing, which exacerbates the issues related to Social Security's vulnerability and rising Medicare budgets, but does not directly correspond to improved medical technology or Medicaid bankruptcy. Finally, spending on antipoverty programs that retain more of an incentive to work may cost more but could be more beneficial in the long run compared to programs that disincentivize working.