Question

Read the following.

A former official with the U.S. Treasury, Peter Fisher, once called the U.S. government “a gigantic insurance company.” This is because more than two-thirds of federal government spending goes toward programs set up to protect people from losses. The government provides a payment program for workers and in return promises to help pay for certain losses during some kinds of emergencies. In the United States, workers pay the federal government a certain percent of taxes, and the money is put into giant funds. The citizens can then turn to these programs for financial help when it is needed.

Source: Pew Research Center’s FACTANK, “What does the federal government spend your tax dollars on? Social insurance programs, mostly,” by Drew DeSilver (4/4/2017)

Explain how the federal government could be characterized as offering forms of “insurance.” Introduce the subject. Make two points. Conclude. Your response should be between 75 and 150 words.

Review the rubric for the grading criteria.

Answer 1

Step-by-step explanation:

Federal government provides programs that are like insurance. That is because the programs support people in need while charging everyone through taxes. Social security is one such program which is an insurance against retirement and you pay social security tax for it. Another is unemployment benefits from the government. It is insurance against losing your job and is paid through taxes.

Answer 2

Step-by-step explanation:

Insurance protects people. Many federal government programs protect people from losses. So the government can be considered as offering insurance. For example workers pay into a program which will provide payments during emergencies. Another case is federal taxes which fund various financial assistance programs. In conclusion, the federal government provide "insurance" to people.