The Crisis in Social Security: Problems and ProspectsMichael J. Boskin Transaction Publishers, 1977 M01 1 - 214 pages |
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Page v
... Revenues , Yes Milton Friedman 25 C The Social Security System ; An Overview Joseph A. Pechman 31 III . The Role of Social Security in Income 41 Maintenance Richard J. Zeckhauser W. Kip Viscusi IV . Intergenerational Transfers in Social ...
... Revenues , Yes Milton Friedman 25 C The Social Security System ; An Overview Joseph A. Pechman 31 III . The Role of Social Security in Income 41 Maintenance Richard J. Zeckhauser W. Kip Viscusi IV . Intergenerational Transfers in Social ...
Page xii
... revenue financing in order to reduce the tax burden on low- and middle - income workers . Friedman agrees with Pechman that general revenue financing is desirable , but for a very different reason : that decisions about social security ...
... revenue financing in order to reduce the tax burden on low- and middle - income workers . Friedman agrees with Pechman that general revenue financing is desirable , but for a very different reason : that decisions about social security ...
Page 2
... revenues of the Treasury . RATIONALE AND REALITY As originally presented to the public in 1935 , social security was a conservative pension system that seemed to resemble private in- surance . In fact , it was not an insurance system ...
... revenues of the Treasury . RATIONALE AND REALITY As originally presented to the public in 1935 , social security was a conservative pension system that seemed to resemble private in- surance . In fact , it was not an insurance system ...
Page 4
... revenues cover the outlays . In the 1950s and 1960s Congress reaffirmed that principle . Deficits in several years between 1957 and 1965 were small and were financed from the old age and sur- vivors insurance trust fund , which was ...
... revenues cover the outlays . In the 1950s and 1960s Congress reaffirmed that principle . Deficits in several years between 1957 and 1965 were small and were financed from the old age and sur- vivors insurance trust fund , which was ...
Page 9
... revenue , and that the formula for calculating the " primary in- surance amount " ( PIA ) —the initial benefit payment to a newly retired person — would increase with the Consumer Price Index . The PIA formula is applied to average ...
... revenue , and that the formula for calculating the " primary in- surance amount " ( PIA ) —the initial benefit payment to a newly retired person — would increase with the Consumer Price Index . The PIA formula is applied to average ...
Common terms and phrases
actuarial annuity argue assets average beneficiaries benefit levels billion birthrate Boskin burden capital accumulation changes contributions costs coverage creases crisis decline deficit dependency disability dividuals earners earnings test Edward Cowan elderly employer employment equity exemption federal Feldstein future groups higher income tax individual inflation intergenerational transfers issue Kip Viscusi labor force participation long-term major married women Martin Feldstein Medicare ment Milton Friedman negative income tax old age pay-as-you-go payments payroll tax Pechman percent policymakers political population present private pension problem progressive tax proposals Publication date rate of return receive reduced reform regressive retirement age retirement benefits security financing Sherwin Rosen social adequacy social insurance Social Security Administration social security benefits social security program social security system social security taxes social security's spouse substantial surance Survivors tax increases taxable taxable wage taxes paid tion trust fund U.S. Congress Viscusi welfare component Zeckhauser
Popular passages
Page 151 - Security, administers a national program of contributory social insurance whereby employees, employers, and the self-employed pay contributions which are pooled in special trust funds. When earnings stop or are reduced because the worker retires, dies, or becomes disabled, monthly cash benefits are paid to replace part of the earnings the family has lost.
Page 20 - ... not guaranteed these benefits by contract and could in principle be deprived of them by a legislative change, the past experience of the program and the current legislation suggest not only that benefits will continue to be paid, but also that they will increase with the general level of income.6 These implicit Social Security annuities are an important part of each family's wealth.
Page 25 - A man who continues working after age sixty-five will be required to pay additional taxes, yet may receive no benefits at all. Social security is not in any meaningful sense an insurance program in which individual payments purchase equivalent actuarial benefits.
Page 23 - The basic idea of social security is a simple one: During working years employees, their employers, and self-employed people pay social security contributions which are pooled in special trust funds.
Page 21 - ... income can be expected to grow in the future and the appropriate rate of interest at which to discount future benefits in evaluating the future annuity benefits. In a recent study," I estimated the 1971 value of this social security wealth at $2 trillion.
Page 191 - wealth" is not real wealth but only an implicit promise that the next generation will tax itself to pay the annuities currently specified in the law. Although there are no tangible assets corresponding to this "wealth...
Page 21 - To put this number in some perspective, note that $197 billion is nearly 25 percent of total consumer spending, nearly twice the total of individual income tax payments, and substantially more than twice the level of national defense expenditures. Viewed somewhat differently, $197 billion is $920 per person, or more than $2500 per family. Let me emphasize that this lower level of GNP reflects the pay-as-you-go nature of our social security system.
Page 172 - Toward solving social security's long-run financial problems The old age component of Social Security is intended to achieve two major goals: to replace income lost at retirement and to provide minimum income support for the aged. The second of these, sometimes called the transfer or welfare goal of the System, aims at providing some socially adequate level of support; the first is an attempt to provide social insurance against the vagaries of macroeconomic fluctuation, imperfections in private insurance...
Page 21 - Viewed somewhat differently, $197 billion is $920 per person, or more than $2500 per family. Let me emphasize that this lower level of GNP reflects the pay-as-you-go nature of our social security system. It is because social security taxes are used to pay concurrent benefits that the capital stock is smaller and income is less than it would otherwise be. The substantial reduction in our nation's savings implies that there is less capital per worker in the economy.