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
To receive a notification by email when Economic Quarterly is posted online or to order single copies of past issues, click on the links below (published online only since 2012).