Economic Quarterly

1997

 

Fall 1997

Investing in Equities: Can it Help Social Security?

Michael Dotsey

After tracing the history of the financial problems facing the Social Security System, the author addresses the economic merits of one key recommendation for returning the system to viability. That recommendation involves investing a portion of the Social Security Trust Fund in equities. Economic analysis suggests that such a policy will have only a minor effect on the government's ability to meet its obligations.

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