Tag: inflation adjustment
The brief’s key findings are: The value of Social Security’s retirement program to individuals is often measured by comparing expected benefits to payroll taxes. But this approach ignores the program’s insurance value, which is larger for those with more uncertain lifespans. The analysis estimates the insurance value using a lifecycle model for stylized households by race, education,…
This relatively forgotten program, enacted in 1972, has withered on the vine. A wise person used to argue that programs designed solely for poor people are poor programs – their benefits erode over time; unchanging income and asset tests reduce the eligible population; and they are expensive to administer. In contrast, programs like Social Security…