Question

New proposals to privatize Social Security are characterized by:

A) increased government regulation.
B) expectations that the government will wisely invest Social Security funds.
C) a greater shift toward the philosophy of social insurance.
D) expectations that individuals can invest more wisely than the government.

Answer 1

Privatization of Social Security is characterized by individuals' expectations to invest more wisely than the government. It proposes a shift away from the government-run program towards allowing individuals to manage their own retirement accounts and investments.

Step-by-step explanation:

Privatization of Social Security is characterized by the expectation that individuals can invest more wisely than the government. This approach proposes moving away from the current government-run retirement program and allowing individuals to manage their own accounts and investments. Advocates argue that private investments in the stock market can yield higher returns compared to the government's trust fund. However, critics highlight the potential risks and uncertainties associated with privatization.