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Social insurance programs are more effective since they provide social security for the basic income to those in their later years. Through social insurance programs, the fired personnel can be given unemployment insurance after they lose their job. These programs are more helpful to the citizens since they offer high benefits to humans associated with higher take-up rates. They have reduced poverty rates since they assist in strengthening purchasing power and raising poor living standards. Workers and citizens over 65 are provided with Medicare, which gives low health costs insurance (Noghanibehambari & Engelman, 2022). Therefore, insurance is more effective as it helps the poor and the aged to access essential services offered in their country at a lower price.
Even though the program is effective, it is affected by political and social-economic forces. Regarding social economics, there has been a high growth rate concerning the existing program. The growth rate promotes poverty since many of the citizens are unemployed. As social insurance depends on the taxes provided by the citizens, it has been more challenging since most of the citizens are unemployed. Unemployment decreases the payroll tax fund, the common funding source of social insurance programs (Chodorow-Reich & Coglianese, 2019). The decrease meant reduced social security and Medicare since the revenue in the federal government was affected. As a result, the government may be unable to offer insurance to the employees and employers even though they contribute wages as it experiences decreased resources due to social and economic factors.
According to political forces, for a member to apply for social insurance, an individual should qualify for the set options. The government established some mandatory whereby they consider who is eligible for Medicaid insurance program. Considering the lack of employment, the government considered raising the corporation tax for all employers and employees (Chodorow-Reich & Coglianese, 2019). Due to the low salary most citizens get, these regulations seem challenging. The decision made by the government of law in raising the tax has increased the cost of living, making it hard for the citizens to survive. Political forces create struggles for the citizens as they cannot settle the challenge.
References
Chodorow-Reich, G., & Coglianese, J. M. (2019). Unemployment insurance and macroeconomic stabilization. Unemployment Insurance and Macroeconomic Stabilization. In Recession Ready, ed. Heather Boushey, Ryan Nunn, and Jay Shambaugh. Web.
Noghanibehambari, H., & Engelman, M. (2022). Social insurance programs and later-life mortality: Evidence from new deal relief spending. Journal of Health Economics, 86, 102690. Web.
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