Option 1: The main social insurance programs like Social Security, Medicare, and unemployment compensation are funded by a payroll tax on the earnings of individuals who may receive benefits. Do you think social insurance programs are effective? How are social insurance programs affected by the socioeconomic and political forces? Explain your answers. I think the social insurance programs like Social Security, Medicare, and unemployment have been effective. These programs function by requiring a contribution from the individual prior to using benefits. Social Security and Medicare were developed to help reduce poverty and reduce inequality by providing financial assistance and insurance to the elderly (Greenberg, 2018). Because of this income, elderly have a steady and reliable monthly income and insurance to get regular checkups. The goal should be financial freedom and to build enough savings to not have to rely on Social Security but unfortunately it is easier said than done for many individuals. Life happens every day from living above your means, poor spending habits, losing a spouse early in life, illness and the list goes on and on as to reasons we struggle to save for retirement. And some individuals believe that Social Security benefits should cover all their expenses when they retire. Social insurance programs are affected by socioeconomic and political forces because the environment affects the amount of money needed to sustain life for the individual. Political forces affect the social insurance programs because the policy makers are evaluating the programs to determine ways to sustain the success and longevity of them (Cottle& Caliendo, 2022). Cottle Hunt, E. & Caliendo, F. N. (2022). Social security and risk sharing: A survey of four decades of economic analysis. Journal of Economic Surveys 36(5) 1591-1609. https://doi.org/10.1111/joes.12492