05-03 "Securing Social Security: Sensitivity to Economic Assumptions and Analysis of Policy Options"
Revamping the Social Security program has become a domestic policy priority of the Bush administration. The President has stated that the system is facing a “crisis” and will be “bankrupt” in 2041. His proposal to change Social Security is centered on the introduction of private accounts that would allow workers to direct a share of their Social Security taxes into investments such as stocks and bonds. In this paper we consider whether Social Security is really facing a crisis and whether any potential future shortfalls could be remedied without changing the basic structure of the existing program.
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