PLS 347-01

EXAM: Next Friday, Oct 28

Pluralism = competition

  • public choice theory
  • agency capture
  • elitism (ind/int)

C.Wright Mills

  • brought elite theory into American politics
  • coined “military industrial complex”
    • govt
    • mil
    • indust

Social Security

  • FDR
  • old age pensions
  • unemployment compensation
  • funded by wage tax (6.2% employee, 6.2% employer up to $109k)
  • constitutional basis: taxing & spending power
  • SCOTUS: legitimate exercise of T&S power
  • 1939 survivor benefits
  • 1957 disability
  • 1964 Medicare (1.45% additional, no cap)
  • funding formula depends on demographics
    • original ratio 9:1
    • now 3:2
    • projected 1:1
  • immigration (population increase)
  • intergenerational transfer
  • SS still in surplus at present
    • fully funded until 2017
    • can pay 100% until 2042
    • pays reduced benefits after
  • 1972, 1977
    • increases FICA tax, COLA
  • 1977 adds IRA ($2k/yr tax free sav. acct)
  • 1983
    • retirement age goes from 65 to 67
    • everyone pays Medicare (no exemptions)
    • SS now taxed
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