The Stock Market

 They point out that, on average, the stock market provides a better rate of return than is provided by the system. This argument is correct: people may be able to do better. We need to recognize, though, that these higher returns would come at the cost of higher risk—which brings us right back to the original argument for why we need a Social Security system. Moral Hazard Finally, because Social Security serves as a form of insurance, it is subject to problems that are faced by all insurance systems. One of these goes by the name moral hazard, which simply means that the presence of insurance may cause people to change their behavior in bad ways. For example, if people have fire insurance, they may be less likely to keep a fire extinguisher in their homes. Similarly, because people know that the government will provide them with Social Security, they have less incentive to manage their own saving in a careful manner. Why Do People Disagree about Social Security? President George W. Bush’s suggestions for reforming the Social Security system encountered a lot of opposition and rapidly became a partisan issue in US politics. Yet it seems as if Social Security is a program that we could analyze completely and carefully using the tools of economics. Why is a basic economic program such as Social Security so politicized? Some people, of course, will view any proposal from the perspective of politics. There are undoubtedly people who supported President George W. Bush’s proposals not on their merits or demerits but just because they support the Republican Party. Likewise, there are surely Democrats who opposed the president’s proposals simply because they came from a Republican. But leaving such extreme partisan viewpoints aside, there are still good reasons why reasonable people might have different opinions on Social Security:  People differ in their assessment of the importance of market failure in insurance markets. A key argument for Social Security is that private markets do not permit people to insure themselves against the risk of poverty in old age. Insurance and annuity markets do exist, so some people argue that this failure of markets is no longer very significant. At the same time, it requires financial sophistication to take advantage of these markets. Many people do not have the expertise to use these markets or access to financial professionals who could advise them.

Don't use plagiarized sources. Get Your Custom Essay on
The Stock Market
Just from $13/Page
Order Essay
Academic Heros
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

Our writers are encouraged to read and research widely to have rich information before writing clients’ papers. Therefore, be it high school or PhD level paper, it will always be a well-researched work handled by experts.

Professional and Experienced Academic Writers

For one to become part of our team, thorough interview and vetting is undertaken to make sure their academic level and experience are beyond reproach, hence enabling us give our clients top quality work.

Free Unlimited Revisions

Once you have received your paper and feel that some issues have been missed, just request for revision and it will be done. In addition, you can present your work to the tutor and he/she asks for improvement/changes, we are always ready to assist.

Prompt Delivery and 100% Money-Back-Guarantee

All our papers are sent to the clients before the deadline to allow them time to review the work before presenting to the tutor. If for some reason we feel our writers cannot meet the deadline, we will contact you to ask for more time. If this is not possible, then the paid amount will be refunded.

Original & Confidential

Our writers have been trained to ensure work produced is free of plagiarism. Software to check originality are also applied. Our clients’ information is highly guarded from third parties to ensure confidentiality is maintained.

24/7 Customer Support

Our support team is available 24 hours, 7 days a week. You can reach the team via live chat, email or phone call. You can always get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

You have had a hectic day, and still need to complete your assignment, yet it is late at night. No need to panic. Place your order with us, retire to bed, and once you wake up, the paper will be ready.


Essay Writing Service

It does not matter the urgency of your paper, or the academic level, our team is ready to help you 24/7. Just contact us and all your academic needs will be sorted.


Admission Essays & Business Writing Help

A student is often required to write an admission letter requesting to be admitted in a certain institution. For you to be gain that admission in your dream institution, you must write a convincing letter. You can depend on our team for the best admission letters.


Editing Support

Academic writing is not just about getting information and throwing it all over. Our team will ensure you have a polished paper that is coherent and has a good flow of information. We also ensure the paper follows the correct formatting styles like APA, Harvard, MLA, Chicago/Turabian.


Revision Support

If our writers write a paper but you are not satisfied in one way or another, you can always ask for revision. This is totally free. Our writers and editors will revise your paper untill you are be totally satisfied. We as well offer revision for papers not done by our writers at a small fee.