Hilary Smith

28 January 2014; Assignment 1

Social Policy Issue: Caring for an aging population

Sketch of issue

  1. As a group ages, it is no longer able to produce market-rewarded goods. However, the group still lives several market-unproductive years before dying. How is this aging group paid for or taken care of when they cannot produce or care for and pay for themselves?

Governance models

Model Characteristics Strengths Weaknesses
Social Security The current, productive workers pay into a system that redistributes to the aging. These workers trust that when they are old, current workers will pay into the same system ·Viable system that can help stimulate economic growth

·Money is available to be used to best redistribute to the aging

·   An aging population will not be able to be supported by a smaller or poorer working class
Personal Investment/Wealth Workers save and invest money, through personal investment choices, company retirement programs, etc, and then take out the accrued money to live on during retirement ·                  People are in charge of their own financial choices and it produces more wisdom and accountability in the market

·                  Helps drive economy as investments, businesses, and entrepreneurs increase

·  Favors the privileged, knowledgeable, rich, or motivated

·  If people are not able to invest while they’re younger and poorer, they will not have sufficient retirement savings

Family Aging individuals rely on their younger family members to support them ·                  Increases necessity or reliance on strong filial bonds and sense of personal social responsibility ·  Many are without families or families able and willing to help fall through the cracks

·  May strain families

Community-Market Partnership Experimental: Possibly some kind of exchange where a market’s investment into a community (including into caring for the aging) is rewarded with the community granting lower property taxes, land usage rights, ad space, or other incentives ·                  Allows for non-monetary payment, possibly resources, services access, or products could be provided in lieu of money

·                  Increases personal and market incentive to care for the aging and respond to population

·  Favors communities rich in some marketable resource

·  May not be market supported, this could be like a really high tax

Hybrids of the above Many use a mixture of investments, social security, and other resources to pay for retirement ·                  Allows for a lot of personal choice and provides safety nets so no one falls too far down the cracks ·  Different people have resources and will be taken care of while others may not

 

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