Tag: financing social security
The brief’s key findings are: As policymakers consider restoring balance to Social Security, understanding the reason for the shortfall is important. Specifically, the program’s “pay-as-you-go” approach, which dates back to the late 1930s, makes it expensive relative to a funded system. Paying full benefits to Depression-era workers meant forgoing the opportunity to accumulate more revenu…
Abstract The policy option of extending mandatory Social Security coverage to newly hired uncovered state and local workers is often included in packages to eliminate the program’s financing shortfall. The arguments for mandatory coverage go beyond financial considerations, though, as extending coverage would bring benefit protections that state and local workers currently lack and would…
