| Problem | Components |
|---|---|
| Policy issue area: | Economics |
| Policy issue: | Spending |
| Description: | Government pension payments (Social Security, civil service) are indexed at a higher rate than the productivity of the economy or the inflation rate justify. |
| Symptoms: | Inflation; income transfer from working age people and children to retired persons. |
| Causes: | Political influence of senior citizen and other special interest groups. |
| Cost of problem: | - |
| Solution | Components |
| Resources: | Federal government (executive and legislative branches); concerned organizations; business and industry. |
| Goal: | Link social security payments to need, and cost of living increases to productivity growth. |
| Program area: | Community development |
| Program-remedy: | 1. Reduction of cost of living allowances (COLAs) to persons above the poverty line
2. Make social security benefits fully taxable, after generous allowances for subsistence and dependents. |
| Program-prevent: | National program for strong growth of the economy, to allow maintaining of old age programs and benefits. |
| Cost of program: | - |
| Beneficiaries: | Taxpayers; wage earners; children. |