Tag: Trust fund exhaustion
The brief’s key findings are: Investing part of Social Security’s reserves in equities has obvious appeal: a higher return means less tax hikes or benefit cuts. But critics fear that equity investment could interfere with private markets or signal that trading bonds for stocks creates magic money. The evidence from the U.S. and Canada shows that suc…
‘Progressive price indexing’ is not a third way. It’s a benefit cut. Social Security is once again in play, no matter how much people deny it. In part, that’s a good thing, because Social Security benefits cost more than the income rolling in (see Figure 1). So far this mismatch between the cost of benefits…
