Security: how it works and why it matters laurence i kotlikoff boston university and nber executive summary this paper uses the auerbachkotlikoff dynamic life-cycle model (ak model) to examine the macroeconomic and efficiency effects of privatizing social security it also uses a simple privatization. Social security choice paper no 9 as social security's problems become more apparent, there is growing support for privatizing the retirement program as the debate without endorsing any specific proposal, the cato project on social security privatization will present a number of possible privatization scenarios. In particular, the critics said, it should become a privatized system where funds are invested in an open market although the argument for privatization of the social security program are numerous, this paper examines and critiques only one such proposal the proposal set forth by president george w bush was picked for. Would it mean for the economy who would benefit, and who would lose is there a simple way to privatize the us system this paper attempts to answer these questions it points out that privatizing social security has the potential for increasing economic efficiency, raising living standards, and improving the intra- and. Privatization of social security research papers look at all sides of the issue of privatization. Privatizing social security: the $10 trillion opportunity by martin feldstein martin feldstein is a professor of economics at harvard university and president of the national bureau of economics research this essay is adapted from the author's richard t ely lecture to the american economics association delivered.
Need writing help check your paper » privatization of social security when people lease a car, they pay, knowing that they get something in return when people pay taxes, they pay, knowing it's the law, and many get some money back what do people think when they pay social security many young people see social. President bush began endorsing privatization during his first presidential election campaign the president's commission to strengthen social security demonstrates the federal government's thrift savings plan for how privatization has positively worked the commission notes that the rates of return of employee funds for. In this paper i use evidence from chile, where social security was privatized in 1981, to assess the impact of such a reform on household saving rates i find that the reform provided a significant stimulus for net of social security household saving increasing household saving rates between 5 and 10.
Tions that the social security system be privatized4 once viewed as a fairly radical recommendation, policymakers are now seriously considering privatization 5 although practical and theoretical problems with privatizing social security j douglas brown, essays on social security 60 ( 1977) (stating that in. In this paper i use evidence from chile, where social security was privatized in 1981, to assess the impact of such a reform on household saving rates i find that the reform provided a significant stimulus for saving among higher income households, increasing their saving rates by more than seven percentage points. There is a lot of confusion in the debate over social security privatization, much of it deliberate this essay discusses the meaning of the trust fund, which privatizers declare either real or fictional at their convenience the likely rate of return on private accounts, which has been greatly overstated and the (ir) relevance of.
The book privatizing social security, edited by martin feldstein is published by university of chicago press. According to privatization's supporters, this shift from public to private management is so profound that it will produce a panoply of significant improvements: while acknowledging that privatization may make sense on economic grounds, paul starr argues in his paper, “the limits of privatization,” that privatization will not. Their social security checks are halted if they are employed even t 472 words 1 page a research on the privatizing of social security introduction this research paper will deal with the issue of privatizing of social security and it will mainly focus on the privatization of the social security that has been done in countries. It is too soon to tell whether curiosity will lead to popular acceptance, but it is already plain that many americans are thinking about private alternatives to social security for the first time proponents of privatization see three main arguments, in addition to ideological advantages, for moving toward a private retirement system.
Social security is a big issue in politics today many people argue that we should change the system completely by privatizing it, which would set up private accounts in which retirees could receive money upon retirement there are also many that argue that we should keep the current system that we have because it has. Disclaimer: free essays on us politics posted on this site were donated by anonymous users and are provided for informational use only the free us politics research paper (should social security be privatized essay) presented on this page should not be viewed as a sample of our on-line writing service if you need. This paper uses a new version of the auerbach-kotlikoff model to consider alternative ways to privatize the us social security system the new model incorporates intra- and intergenerational heterogeneity and is closely calibrated to us fiscal institutions three privatization issues are considered: financing the transition.