Chapter

Conservative Proposal 2 by Representative Paul Ryan

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/9780226300368.003.0013
Conservative Proposal 2 by Representative Paul Ryan

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Congressman Ryan has a long history of active participation and leadership on entitlement reform. The latest initiative is a comprehensive reform of the budget process within which he pledges to preserve the current Social Security safety net and to ensure its continued solvency for future generations. The outcomes regarding the roles of the traditional and privatized systems under the Ryan proposal would depend on how much traditional benefits are reduced. The proposal could end up eventually eliminating the traditional program and replacing it with a fully privatized system if the reformed program's benefits are reduced to zero. The Ryan reform proposal includes modifications to the existing system's taxes and benefits and introduces Personal Security Accounts (PSA). The proposal is viewed as a “conservative proposal” because it includes large personal accounts funded in a carve-out manner and it pays for the ensuing transition cost mostly from future adjustments to participants' benefits.

Keywords: congressman Ryan; conservative proposal; Personal Security Accounts; reform; Social Seurity

Chapter.  8581 words.  Illustrated.

Subjects: Public Economics

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