Tag: Social Security trust fund

Social Security cards over a newspaper with stock market information

The gains could be sizable and the risks are minimal.  In a recent Wall Street Journal column, I debated with Michael Tanner of the Cato Institute the merits of investing a portion of the Social Security trust fund in equities.  I, of course, think I won that debate!  Equity investment would likely increase investment returns,…

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Abstract Some observers believe that investing a portion of the Social Security Trust Fund in equities would strengthen its finances and improve the program’s intergenerational risk-sharing.  However, equity investments would also expose the program to greater financial risk and potentially greater political risk.  Monte-Carlo simulation methods are used to investigate whether equity investments would likely…