how could spending less on social security now lead to an ability to increase social security funding in the future? why dont business devote more of their R&D spending toward basic scientific research?
Ans..
Since government has a fixed pool of money and resources to devote
to any activity, if it is spending less on social security today to
spend it somewhere else, then in future the money generated from
other investment would be invested in social security. This is how
balance is maintained.
Businesses dont devote more of their R&D to basic scientific
research because the basic research is always taken up by smaller
firms and is nit uncommon and does not reap in more rewards.
Rather devoting money in advanced technology will help firms
innovate a new technology and make money from it using patents or
higher sales and profits.
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