Reference no: EM131192283
Lalaland is an extremely stable country with 200,000 residents, half of whom are young workers and half of whom are retirees. At the end of each "year," the 100,000 retirees die, the 100,000 young workers retire, and 100,000 new young workers are born. Workers earn a total of $5,000 for the year.
Lalaland operates a pay-as-you-go social security system, where each current worker is taxed $2,500, and the revenue collected is used to pay a $2,500 pension to each retiree. The neighboring country, Gogovia, is larger and more dynamic. Gogovia has an active stock market that Lalalandians could invest in and earn a 10% rate of return. It also has an active banking sector, which will gladly lend the Lalalandian government money, charging them 10% interest per year.
Lalaland is considering moving to a system of personal accounts, where each Lalalander would take her $2,500 and invest it in Gogovian markets (and earn a much higher rate of return!). The government would borrow $250 million ($2,500 × 100,000) from Gogovian bankers to pay for current retirees. It would then tax retirees each year by just enough to pay the interest on this debt. Would this new system be better or worse for Lalaland?
|
Social security with a different social insurance program
: Does Social Security provide much benefit in terms of consumption smoothing over the retirement decision?- Contrast Social Security with a different social insurance program.
|
|
Myth of mac devices being more secure
: Explain whether or not you believe that the myth of Mac devices being more secure than Windows devices is becoming history, and justify your answer. Further, indicate one (1) main reason why you believe this myth still exists in the minds of end u..
|
|
Displayed while developing struts application
: What are the reasons for an error message not being displayed while developing struts application?
|
|
Dos attacks and password cracking
: Identify three (3) DoS attacks and analyze the way in which each attack takes advantage of the interworking of the transport protocols (e.g.,TCP, IP, and UDP) and exploits the protocol's vulnerabilities. Describe the protocols used for each attac..
|
|
Would this new system be better or worse for lalaland
: Lalaland is an extremely stable country with 200,000 residents, half of whom are young workers and half of whom are retirees. - Would this new system be better or worse for Lalaland?
|
|
Interaction design that benefits the user
: Manufactures of smartphones design products to be interactive with consumers. To remain competitive, designers are focused on getting a new product to market as quickly as possible. The user experience (UX) plays an important role in product devel..
|
|
Delete styles that you have created within a document
: During a Web Design, explain why is it necessary to delete styles that you have created within a document after you export those styles to an external style sheet.
|
|
Element of an array list
: 1. Assume each element of an array list, stored in row-major order, occupies four bytes of storage. If array list is declared by each of the following, and the base address of the array is 100, find the address of the indicated array element.Pleas..
|
|
Determine the minimum variance portfolio
: Directions: Update the data with your recommendations for the blue cells, then use Solver to determine the minimum variance portfolio. Choose the index for each asset class, type the name below and paste in the relevant returns
|