Will “growing the economy” fix Social Security’s financial problems?
One school of thought related to the search for a solution to Social Security’s looming insolvency is that a more robust economy, with higher wages and an expanded labor force, will tilt the finances back into level territory. A policy analysis paper published today by Romina Boccia and Dominik Lett of the CATO Institute casts doubt on this theory by explaining “… how inflation and economic growth affect Social Security’s fiscal outlook.” Their analysis, which includes a primer on how Social Security works, focuses on fiscal irresponsibility by government and the corollary impact on the program’s financing, concluding with a call for legislators to “… reevaluate how the program works and whom it serves.” It’s a thought-provoking piece, which you can access in full here…