...households viewed social security taxes as an alternative to savings." [[Footnote by Dr. Feldstein: This social security 'wealth* is not real wealth but...corresponding to this "wealth", it Is perfectly rational (? RGX) for households to regard the value of their future social security benefits as part of their...

...exist anywhere in the economy. It is not real wealth represented by any tangible assets. It is merely an implicit promise that the next generation will tax itself to pay currently promised benefits. In this sense, instead of Social Security "wealth," this concept may be...