Reference no: EM131400650

Critically discuss the following topic. Avoid incoherent babbling: brainstorm first, then organize your idea into coherent writing. The penalty on grammatical errors follows the square numbers series, i.e. the first mistake will be punished with 1 point, the next one with 4 points, and the subsequent one with 9, and so on (the total deduction is limited to 20 points). In class, we learned that Americans work much more than do Europeans. We concluded that taxes account for most of the differences in hours worked between American and European workers.

(a) Show how higher taxes may induce Europeans work less. Explain.

(b) Explain briefly why this finding is relevant for the design of Social Security in the U.S.