The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Social Security in the United States

  • Selahattin İmrohoroğlu
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_2030

Abstract

Social Security is a pay-as-you-go US federal government programme that provides pensions for retirees and their surviving family members. It is a public annuity that insures against longevity and stock market risks. The payroll tax that finances it discourages private saving and work effort. The projected aging of the US population will strain the programme and necessitate either a reduction in benefits, an increase in payroll taxes, partial privatization, or some combination of these policy reforms, by 2030.

Keywords

Adverse selection Commitment Crowding out Dependency ratio Longevity insurance Medicaid (USA) Medicare (USA) Overlapping generations models Payroll tax Pensions Retirement Social Security in the United States 

JEL Classifications

D4 D10 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Selahattin İmrohoroğlu
    • 1
  1. 1.