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.
Amanda L. Kramer
Order single copies or subscribe to Economic Quarterly and other publications from the Federal Reserve System.