Social Security and Its Discontents: Perspectives on Choice by Michael D. Tanner

By Michael D. Tanner

One of the concerns mentioned are the issues of the present method; proposals for the reform; and the influence of reform at the negative, ladies, and minorities.

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Over the past 25 years when demographic factors were more advantageous, the number of beneficiaries increased at about the same rate as the number of covered workers. That situation is expected to change sharply as the number of beneficiaries mounts rapidly while growth in the number of workers slows. The coming surge in beneficiaries is tied both to the retiring baby boomers and to the lengthening life span of retirees. The expected slowdown in labor force growth is the result of the exit of the baby boomers from the labor force, which will leave a working-age population increasingly drawn from the smaller cohorts born after the baby boom.

In Social Security: What Role for the Future? ed. Peter A. Diamond, David C. Lindeman, and Howard Young (Washington: National Academy of Social Insurance, 1996). Many proposals along these lines incorporate initial tax increases to help restore the longrun solvency of the Social Security trust funds. Without an increase in savings, there would be no prefunding of benefits. 36. Greenspan, in his testimony of January 28, 1999, said that investing a portion of the Social Security trust fund in equities would arguably put at risk the efficiency of our capital markets and, thus, our economy.

34. Michael Tanner, ‘‘ ‘Saving’ Social Security Is Not Enough,’’ Cato Institute Social Security Paper no. 20, May 25, 2000. 35. See Barry P. Bosworth, ‘‘Fund Accumulation: How Much? ’’ in Social Security: What Role for the Future? ed. Peter A. Diamond, David C. Lindeman, and Howard Young (Washington: National Academy of Social Insurance, 1996). Many proposals along these lines incorporate initial tax increases to help restore the longrun solvency of the Social Security trust funds. Without an increase in savings, there would be no prefunding of benefits.

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