Question: In 1955, the last year when social security payments included only old-age payment (before disability), payments totaled $4.9 billion. For 2001, the figure was $433 billion (excluding Medicare, which was another $218 billion). During the intervening period, the CPI rose at an average annual rate of 4.2%, and the number of people over 65 rose an average of 2.0% per year. What would social security have been in 2001 if the program had not expanded after 1955 (i.e., if the only increases were due to inflation and population)? Now suppose the CPI had been overstated by 1.1% per year. What would social security payments have been in 2001 if the actual rate of inflation had been used?