SHORTCOMINGS OF SOCIAL SECURITY

Nils H Hakansson
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Nils H Hakansson: University of California, Berkeley, USA

Chapter 4 in Social Security's Investment Shortfall: $8 Trillion Plus — and The Way Forward:Plus How the US Government's Financial Deficit Reporting = 64 Madoffs, 2012, pp 19-28 from World Scientific Publishing Co. Pte. Ltd.

Abstract: AbstractDespite being viewed as the most successful of the government’s many programs, Social Security suffers from three serious shortcomings. First, contributions are labeled, and thought of, as a tax rather than as mandatory retirement and insurance contributions which is what they are. Since the contributed funds are invested in Treasury securities, they have all the properties of what we call savings or investments which, like pension funds and personal retirement accounts, are expected to grow over time. In addition, the mindset is often affected by the words used. “Taxes” tend to generate negative reactions while the word “investment” tends to elicit positive connotations…

Keywords: Quantitative Modelling; Statistical; Computer; Marketing; Neural Networks; Fuzzy Logic; K-Clique Model; Meta-Heuristics Investment; Social Security; Public Pension Plans; Trust Funds; Public Policy; Government Financial Reporting; Unified Budget; Economic Growth; National Debt; Pension Funds; Risk Premium; Entitlements; Passive Investments; Short-Term Borrowing; Private Social Security Accounts; Minimal Safety Net; Personal Safety Net; Long-Term; Total Returns; Compound Returns; Economies Of Scale; Fees; Administrative Expenses; Productivity; Administrative Independence; Transaction Costs; Market Impact; Mean Reversion; International Stocks; Moral Hazard; Economic Efficiency; Professional Management; Payroll Tax; Benefit; Beneficiary; Retirement; Survivor; Life Insurance; Disability Insurance; Contribution; Insurance Premium; Great Depression; Greenspan Commission; Inflation (search for similar items in EconPapers)
Date: 2012
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