How Does Social Security Redistribu

How Does Social Security Redistribute in Practice?
The example in Table 13-1 shows how an imaginary Social Security system
can lead to redistribution across generations: the first generation was a big
winner, middle generations got a rate of return determined by wage and population
growth, and the final generation, if there ever is one, is the big loser.
Reality is more complicated than this simple example. In this section, we look
at the evidence on the actual redistribution due to the Social Security system
in the United States. Which generations have won from the existence of this
system, which have lost, and by how much?
We measure redistribution by computing the Social Security Wealth (SSW)
accruing to different generations in the United States. SSW is the expected
present discounted value of future Social Security benefits over a person’s lifetime,
minus the expected present discounted value of payroll taxes that the
person will pay. SSW is computed as follows:

Calculate the entire future stream of benefits that a person expects to
receive before he or she dies, accounting for the fact that the date of
death is not certain (which is why this is the expected present discounted
value), by multiplying each period’s benefits by the odds that the individual
will live to receive them (e.g., benefits at age 68 are valued much
more highly than those at age 80, since the odds of living to receive the
benefits at age 80 are lower).

Use a discount rate to calculate the present discounted value (PDV) of
that stream of benefits (as discussed in Chapter 4 on pages 103–104).

Calculate the entire future stream of taxes that a person expects to pay
before he or she dies.

Compute the PDV of that stream of taxes.

Take the difference between these two to get the SSW.
Table 13-2 shows the SSW for unmarried males turning age 65 in 1960,
1995, and 2030 (that is, born in 1895, 1930, and 1965). For each age group, the
table also shows the SSW separately for low -, medium -, and high -earning
workers. The figures in each cell in the table are the SSW for the group indicated
on the top and to the left of the table. An average wage earner turning
65 in 1960, for example, would have received $36,500 more in benefits than
he or she paid in taxes. An average wage earner turning 65 in 1995 would

Hasil (Bahasa Indonesia) 1:

Bagaimana Jamsostek mendistribusikan dalam praktek?Contoh di tabel 13-1 menunjukkan bagaimana sistem jaminan sosial imajinerdapat menyebabkan redistribusi di seluruh generasi: generasi pertama adalah besarpemenang, generasi tengah mendapat tingkat pengembalian yang ditentukan oleh upah dan populasi yangpertumbuhan, dan generasi akhir, jika pernah ada satu, adalah pecundang besar.Kenyataannya lebih rumit daripada contoh sederhana ini. Dalam bagian ini, kita melihatpada bukti-bukti tentang redistribusi sebenarnya karena sistem jaminan sosialdi Amerika Serikat. Generasi yang telah memenangkan dari keberadaan inisistem, yang telah hilang, dan oleh berapa banyak?Kita mengukur redistribusi oleh komputasi Jamsostek kekayaan (Arah Barat)menghasilkan untuk generasi yang berbeda di Amerika Serikat. SSW adalah yang diharapkandiskon nilai sekarang dari manfaat jaminan sosial masa depan selama hidup seseorang,minus diharapkan diskon nilai sekarang dari penggajian pajak yangorang akan membayar. SSW dihitung sebagai berikut:Menghitung aliran masa depan seluruh manfaat yang mengharapkan seseorang untukmenerima sebelum dia meninggal, akuntansi untuk fakta bahwa tanggalkematian bukanlah tertentu (yang adalah mengapa hal ini sekarang diharapkan DISKONnilai), dengan mengalikan setiap periode manfaat dengan peluang yang individuakan hidup untuk menerima mereka (misalnya, manfaat pada usia 68 dinilai banyaklebih tinggi daripada di usia 80, sejak peluang hidup untuk menerimabenefits at age 80 are lower).
Use a discount rate to calculate the present discounted value (PDV) ofthat stream of benefits (as discussed in Chapter 4 on pages 103–104).
Calculate the entire future stream of taxes that a person expects to paybefore he or she dies.
Compute the PDV of that stream of taxes.
Take the difference between these two to get the SSW.Table 13-2 shows the SSW for unmarried males turning age 65 in 1960,1995, and 2030 (that is, born in 1895, 1930, and 1965). For each age group, thetable also shows the SSW separately for low -, medium -, and high -earningworkers. The figures in each cell in the table are the SSW for the group indicatedon the top and to the left of the table. An average wage earner turning65 in 1960, for example, would have received $36,500 more in benefits thanhe or she paid in taxes. An average wage earner turning 65 in 1995 would