Because only the summary of the Statement of Social Insurance is presented in the text, obtain the most recent complete Consolidated Financial Report. It is available on the website of the Bureau of the Fiscal Service of the Department of the Treasury (Try https://www.fiscal.treasury.gov/fsreports/rpt/finrep/fr/fr.index.html) Review the Statement of Social Insurance, the related notes, and the discussion of social insurance that is included as "required supplementary information."
1. In terms of both revenues and expenditures, which is the largest of the social insurance programs?
2. Assuming no change in current law, which of the programs is likely to impose the greatest financial burden on the government's general fund? Explain
3. What are the three main components of Medicare? How do they differ?
4. The Social Insurance Summary presents the total present value of future expenditures in excess of revenues for both a "closed‐group" and an "open group." What is the difference between the two (see the related notes for an explanation)? Why would the excess be greater for the closed group than for the open group?
5. The federal government has been criticized for not including the obligations for social insurance as balance sheet liabilities.
a. What is the rationale for not including them?
b. Do you think federal spending policies would be more conservative (i.e., there would be less spending) if such obligations were included as liabilities? Explain.