Abstract

Anti-Social Security

The article focuses on United States President George W. Bush's Social Security policy proposals. The battle for Social Security's survival is under way. In a key maneuver recently, N. Gregory Mankiw, President George W. Bush's chief economic adviser, explicitly floated the idea of cutting benefits, a necessary but unmentioned part of the White House's privatization plan. The outlines of the Bush plan are already clear, having been laid out by his 2001 Social Security Commission. A worker who is 20 today would see a cut of approximately one-third in his or her retirement benefit, although workers would theoretically more than recoup this loss by investing a portion of their Social Security taxes in a private account. Private accounts have high administrative costs. According to the Social Security trustees report, the current Social Security system can pay full benefits through the year 2042 with no changes whatsoever.