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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: kech who wrote (113121)	5/9/2005 10:44:51 AM
From: Mary Cluney	Read Replies (2) \| Respond to of 793964

Social Security is a consumption loan problem and it works fine if the population is the same size or growing over time and if life expectancy is the same across generations and if interest rates are stable. You should now realize that at least two of these are not true: I agree there is a shortfall. The number of retirees go up and the people in the working populations goes down in relative terms . It happens. It could happen just the other way also. That is why, there is social security. There is a shared risk. As for people living longer, the remedy should be they work longer - contributing more years to social security. That would only reflect reality. In any case, in the shared risk part of the equation, the short fall is miniscule, relative to GDP.