Chapter

Centrist Proposal 2 by Jeffrey Liebman, Maya MacGuineas, and Andrew Samwick

Jagadeesh Gokhale

in Social Security

Published by University of Chicago Press

Published in print April 2010 | ISBN: 9780226300337
Published online February 2013 | e-ISBN: 9780226300368 | DOI: http://dx.doi.org/10.7208/chicago/9780226300368.003.0011
Centrist Proposal 2 by Jeffrey Liebman, Maya MacGuineas, and Andrew Samwick

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Jeffrey Liebman, Maya MacGuineas, and Andrew Samwick all have a long history of academic research in Social Security policy—which lends the Social Security reform proposal considerable gravitas as a potentially carefully crafted policy. The affiliation of all of the proposal's authors with Democratic and Republican administrations and policymakers confers on it considerable credibility as a well balanced compromise between opposing perspectives on Social Security's future direction. The proposal's even-handed approach extends to its personal accounts components as well. Such accounts would be financed out of both “add-on” and “carve-out” methods. Although liberals don't oppose personal accounts with unanimity, they uniformly reject carve-out financed personal accounts because larger short-term Social Security cash flow deficits could jeopardize the continued payment of current benefits and political support for the program in general. This chapter uses the metrics to provide a comprehensive picture of the proposal's financial effects on the Social Security program. The LMS proposal's approach is to ensure that the current system is preserved (a goal of political liberals) while simultaneously introducing personal accounts (a goal for conservatives).

Keywords: Social Security policy; policymakers; proposal; liberals; financial effects

Chapter.  5746 words.  Illustrated.

Subjects: Public Economics

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