Provides an overview of the social security system, examines its impact on retirement patterns, and discusses the systems problems and their possible solution
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While Social Security has achieved an impressive reduction of poverty among the elderly, it is on a collision course with insolvency. The program has other serious shortcomings: an inequitable distribution of wealth across generations; discouragement of work and savings; and an imposition of heavy taxes on younger workers. Boskin proposes to solve these problems (except the long-term deficit, for which he has no ready answer) by substituting a two-tier system. The first tier (the insurance element) would provide actuarially equivalent insurance for retirement annuities, disability, and catastrophic hospital care. The second tier would guarantee minimally adequate retirement benefits for all citizens. An incisive analysis, highly recommended. Harry Frumerman, formerly with E co nom ics Dept., Hunter Coll . , CUNY
Copyright 1986 Reed Business Information, Inc.
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