Tag: Social Security trust fund
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,…
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…