Overview
Social insurance mechanisms play a crucial role in public economics by providing financial support to individuals during times of need. These programs, such as Social Security and unemployment insurance, are designed to reduce poverty and promote economic stability. They are funded primarily through...
Key Terms
Example: Many people rely on Social Security benefits after retirement.
Example: Unemployment insurance helps individuals while they search for new jobs.
Example: Medicare covers hospital visits and medical expenses for seniors.
Example: Public welfare programs help families afford basic necessities.
Example: Payroll taxes are deducted from workers' paychecks to support Social Security.
Example: Social insurance contributes to economic stability by supporting consumer spending.