The Crisis in Social Security: Problems and ProspectsMichael J. Boskin Transaction Publishers, 1977 M01 1 - 214 pages |
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Page xii
... workers . Friedman agrees with Pechman that general revenue financing is desirable , but for a very different reason : that decisions about social security funding would have to compete openly with other government programs and help ...
... workers . Friedman agrees with Pechman that general revenue financing is desirable , but for a very different reason : that decisions about social security funding would have to compete openly with other government programs and help ...
Page 7
... workers paying social security taxes would climb from 31 in 1976 to more than 50 by the middle of the twenty - first century.8 The second cause of the worsened outlook was inflation . For a variety of reasons , inflation in the United ...
... workers paying social security taxes would climb from 31 in 1976 to more than 50 by the middle of the twenty - first century.8 The second cause of the worsened outlook was inflation . For a variety of reasons , inflation in the United ...
Page 8
... Workers 1976-2050 25 1980 1990 2000 2010 2020 CALENDAR YEAR 2030 2040 2050 PRINCIPAL ASSUMPTIONS Mortality rates were assumed to decline overall by about 15 % from 1976 to 2050 . Fertility rates were assumed to continue decreasing to ...
... Workers 1976-2050 25 1980 1990 2000 2010 2020 CALENDAR YEAR 2030 2040 2050 PRINCIPAL ASSUMPTIONS Mortality rates were assumed to decline overall by about 15 % from 1976 to 2050 . Fertility rates were assumed to continue decreasing to ...
Page 9
... workers . For low - wage earners ( $ 3,789 in 1975 ) , whose replace- ment ratios are highest by legislative policy , the projection shows the ratio reaching 112 percent in the year 2050 , under the inter- mediate economic assumptions ...
... workers . For low - wage earners ( $ 3,789 in 1975 ) , whose replace- ment ratios are highest by legislative policy , the projection shows the ratio reaching 112 percent in the year 2050 , under the inter- mediate economic assumptions ...
Page 10
... workers earning the federal minimum wage . In 1975 " low , " median , and maximum earnings were $ 3,789 , $ 8,188 , and $ 14,100 respectively . *** The intermediate set of assumptions includes an ultimate CPI annual increase of 4 % and ...
... workers earning the federal minimum wage . In 1975 " low , " median , and maximum earnings were $ 3,789 , $ 8,188 , and $ 14,100 respectively . *** The intermediate set of assumptions includes an ultimate CPI annual increase of 4 % and ...
Common terms and phrases
accumulation Administration amount annual annuity argue assets assistance average base billion burden capital changes component Congress continue contributions costs covered decline deficit dependency disability discussion earnings economic effect elderly employer employment equity expected federal Figure financing future goal greater groups growing growth higher important income tax increase individual inflation interest investment issue labor force less long-term major married means ment old age older paid participation past payments payroll tax pension percent period persons political population possible present problem projected proposals question ratio reason receive recent reduced reform regressive replace Report require result retirement revenues rise saving Social Security Administration social security benefits social security system social security taxes structure substantial tax rate tion transfer trust fund University wage wealth welfare women workers young
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.