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Social Insurance Programs - Essay Example

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The author of this essay "Social Insurance Programs" touches upon the government social insurance programs. It is stated that the government of a country creates social programs to safeguard their citizens from economic risk and other risks in life. …
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Social Insurance Programs
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Social Insurance Programs

Download file to see previous pages... The paternalistic reason for the involvement of the government in the program is to provide enforcement of the policy. The Federal government pays the compensation to enforce the rule in the private sector that employers have to pay compensation for their employees who get injuries in the line of duty. The government participates in the program to be a leader in the delivery of the compensation program and distribution of the information in the economy.Compensation bargain, disputes, and fraud are the major behaviors that the government singles out in the private sector. Disputes and fraud reduce the effectiveness of the program from achieving its main goals. Disputes arise in the private sector when the cost of the compensation is high. Companies in the private sector go to the court, and it slows down the process of recovery of the workers. In relation to disputes, fraud is a behavior that the government of United States of America singles out. It allows individuals in the private sector to make an adjustment in their finances to avoid paying the compensation. The behaviors do not enhance the process and rehabilitation of employees. The moral implications of the program are that it provides workers with morale that in the case of injury the government will not abandon them. The program indemnifies the victim for the lost time during their injuries and covers the medical expenses. The program can reduce social efficiency by distributing resources to a certain sector of the economy. ...Download file to see next pagesRead More
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