May 6, 2012

Save Social Security: Restore Economic Growth

By Fred Bauer
The April release of the 2012 Social Security Trustees Report has occasioned considerable media coverage.  Much of this coverage has emphasized the report's finding that the date for Social Security's bankruptcy has been pushed to around 2033 (the 2011 report suggested that bankruptcy would instead occur in 2036).  Yet the implications of this report are not confined solely to the matter of public finances, and policy reforms for Social Security are not the only thing that could improve the outlook for this program.  Like many federal programs, Social Security is dependent upon the health of the broader U.S. economy; the poor economic performance of the past few years (if not the past decade) has taken a considerable toll on the program.  In thinking about managing Social Security, the right should not miss the influence of economic performance upon the sustainability of this federal program. The Trustees Report lays out three scenarios for the future of Social...(Read Full Article)