Framing the Social Security Debate: Values, Politics, and Economics (Conference of the National Academy of Social Insurance)

926 Pages·1998·2.7 MB·English

by  National Academy of Social Insurance

Framing the Social Security Debate :
title:
Values, Politics, and Economics
author: Arnold, R. Douglas
publisher: Brookings Institution Press
isbn10 | asin: 0815701535
print isbn13: 9780815701538
ebook isbn13: 9780585034157
language: English
subject Social security--United States--Congresses.
publication date: 1998
lcc: HD7125.F73 1998eb
ddc: 368.4/3/00973
subject: Social security--United States--Congresses.
Framing the Social Security Debate
Values, Politics, and Economics
R. Douglas Arnold
Michael J. Graetz
Alicia H. Munnell
Editors
National Academy of Social Insurance
Washington, D. C.
Copyright © 1998
NATIONAL ACADEMY OF SOCIAL INSURANCE
1776 Massachusetts Ave. N.W.
Washington, D.C. 20036
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Library of Congress Cataloging-in-Publication data
Framing the social security debate: values, politics, and
economics / R. Douglas Arnold, Michael J. Graetz, and Alicia H.
Munnell,
editors.
p. cm.
Papers presented at the tenth annual conference of the National
Academy of Social Insurance, held in Washington, D.C., on Jan. 29,
1998.
Includes bibliographical references.
ISBN 0-8157-0153-5 (pbk.)
1. Social securityUnited StatesCongresses. I. Arnold R.
Douglas, 1950-II. Graetz, Michael J. III. Munnell, Alicia Haydock.
IV. National Academy of Social Insurance (U.S.). Conference (10th:
1998: Washington, D.C.)
HD7125.F73 1998
368.4'3'00973ddc21 98-25429
CIP
9 8 7 6 5 4 3 2 1
The paper used in this publication meets the minimum requirements
of the American National Standard for Information
SciencesPermanence of Paper for Printed Library Materials, ANSI
Z39.48-1984
Typeset in Times Roman
Composition by R. Lynn Rivenbark, Macon, Georgia
Printed by R. R. Donnelley & Sons, Harrisonburg, Virginia
National Academy Of Social Insurance
The National Academy of Social Insurance is a non-profit,
nonpartisan organization made up of the nation's leading experts on
social insurance. Its mission is to conduct research and enhance public
understanding of social insurance, to develop new leaders and to
provide a nonpartisan forum for exchange of ideas on important issues
in the field of social insurance. Social insurance, both in the United
States and abroad, encompasses broad-based systems for insuring
workers and their families against economic insecurity caused by loss
of income from work and protecting individuals against the cost of
personal health care services. The Academy's research covers social
insurance systems, such as Social Security, Medicare, workers'
compensation and unemployment insurance, and related social
assistance and private employee benefits.
Board of Directors
Henry J. Aaron, Chair
John L. Palmer, President
Janice Gregory, Vice President
Lawrence Thompson, Secretary
Nathan J. Stark, Treasurer
Peter A. Diamond
Bill Gradison
Robert Greenstein
William B. Harman
William C. Hsaio
Karen Ignagni
Charles A. Jones
Jerry Mashaw
Olivia Mitchell
Marilyn Moon
Gerald M. Shea
Bruce C. Vladeck
Honorary Advisors
Nancy Kassebaum Baker
Lloyd Bentsen
John H. Biggs
John Chafee
Linda Chavez-Thompson
Teresa Heinz
Roger Joslin
Lane Kirkland
Beth Kobliner
Daniel Patrick Moynihan
Robert J. Myers
Paul O'Neill
Elaine Rosen
Standford G. Ross
Alexander Trowbridge
Founding Chair
Robert M. Ball
Page vii
Preface
of Social Security is important. It is the cornerstone of
TIMELY REFORM
retirement security for American workers and their families; for more
than two decades Social Security has provided more than half of the
total income for two-thirds of elderly beneficiaries.
This volume consists of papers and commentary from the tenth annual
conference of the National Academy of Social Insurance, which was
held in Washington, D.C., on January 2930, 1998. The purpose of the
conference was not to come up with policy prescriptions for Social
Security but rather to clarify the nature of the debate.
People's views about how to restore financial balance to Social
Security reflect a combination of economic assessments, political
predictions, and value judgments. When these three dimensions are
combined, it is difficult to have a productive dialogue. Once
separated, however, people with very different policy preferences can
identify the sources of their disagreements.
The papers and discussion demonstrate that economists differ little on
the economic issues surrounding prefunding, investing in equities, and
defined-benefit versus defined-contribution plans. The real debate
centers on questions of values and politics. These are the areas in
which Congress and the American people must find some common
ground. Reasoned debate is in everyone's interest because deferring
changes until the baby boom starts to retire will be very costly.
Participants entered the conference with a wide array of views about
the extent to which Social Security should move from a defined-
benefit plan to a system with both defined-benefit and defined-
contribution elements. They also left with a wide range of views.
Nevertheless the conference was a successit produced a clear
separation of economic issues from questions of values and politics.
As policymakers settle down to the difficult business of strengthening
Page viii
Social Security for the long term, this volume supplies them with a
useful background.
Individuals who had served on the Academy's study panel on
Evaluating Issues in Social Security Privatization made a valuable
contribution. These individuals had explored Social Security
privatization issues for more than a year, and their papers and
commentary enriched both the conference and the subsequent
deliberations of the panel.
Although the editors' names appear on the volume, the inspiration
behind this effort came from two people at the National Academy of
Social InsuranceVirginia Reno and Kathryn Olson. They were
instrumental in framing the theme of the conference, suggesting
authors and discussants, and structuring the sessions. Besides
providing much help on the substance, they and the rest of the
Academy staff did a wonderful job on the logistics, which helped
make the conference such a success. We especially acknowledge
Terry Nixon, who masterminded the conference logistics with the help
of Suzanne Habbyshaw, Brian Montgomery, and Donielle Wells.
Allison Watts aided in coordinating the conference and producing this
volume. At the Brookings Institution, Theresa Walker edited the
manuscript, Carlotta Ribar proofread it, and Sherry Smith prepared
the index.
The Alfred P. Sloan Foundation, the AARP Andrus Foundation,
TIAACREF, and the Actuarial Foundation provided generous
financial support for the conference.
The papers and discussions reflect the views of the authors and do not
necessarily reflect those of the employers or other organizations with
which the authors are associated or of the funders, officers, board,
staff, or members of the National Academy of Social Insurance or the
Brookings Institution.
R. DOUGLAS ARNOLD
MICHAEL J. GRAETZ
ALICIA H. MUNNELL