Answer to Question #215309 in Finance for KOKETSO

Question

Define social security and critically discuss the effects of social grants on incomes and welfare

Answer 1

The Old-Age, Survivors, and Disability Insurance (OASDI) system in the United States is known as Social Security, and this is administered by the Social Security Administration (SSA), a regulatory body. It offers social security payments and incapacity payments, while it is widely regarded for pension payments.

Nutrition and knowledge expenditures are actually increased as a result of social grants since they increase the incomes of the recipients. Real impacts of subsidy modifications have a greater influence on income inequality than independent impacts. This really is commensurate with the reality that grants account for a significant portion of the earnings of low-income households.

In addition, social grants give job seekers the means and financial security they need to pursue highly volatile, high-reward opportunities. Belonging in a family that receives social assistance is linked to a greater rate of social awareness.

Furthermore, grant distributions transfer incomes to impoverished families and have helped income inequality decrease. The leadership's largest poverty alleviation and reallocation measure is the social grant program. There are plenty of others, such as government-provided homes and clean drinking water.