1. Social Security is a federal entitlement program. Senator Rick Scott proposes that all federal entitlement programs have to be renewed every 5 years. The renewal can change the funding (benefit payments) and taxes. Senator Rick Scotts proposal is part of a plan to reduce federal entitlement spending and enable larger tax cuts. Explain how this plan should a prospective Social Security beneficiarys

a) present value of their endowment

b) well-being (level of utility) and

c) savings