The Continued Financial Stability of Social Security

• Main Author: Beil, Richard
• Other Authors: Rubin, Rose M.
• Format: Others
• Language: English
• Published: North Texas State University 1982
• Subjects: Social Security system; interfund borrowing; economic conditions; Social security > United States > Finance.
• Online Access: https://digital.library.unt.edu/ark:/67531/metadc504650/

The Social Security System is projected to encounter both short-term and long-term financial crises. The economic effectiveness and impacts of alternative solutions to both problems are analyzed. Government projections show the short-term deficit can be solved through interfund borrowing. Solving the long-term deficit will require the generation of new funds. All four solutions analyzed will increase unemployment, inflation, and interest rates, and decrease growth potential. A combination of increased OASI taxation and mandatory coverage is recommended as the most effective solution with the least adverse economic consequences.