PSYC 5571 Lecture Notes - Lecture 24: Widow, Paygo
Document Summary
**assignment due next class on the syllabus bring in page 9 of the assignment about how you think we should fix ss. **next class we will be starting at 3:20. Dedicate a piece of the general tax or estate tax to social security. Equity returns are 6. 5% over a 75 year period: maybe we should put 40% of the social security money into the equity market. Ss trust fund: if we choose this method, in 2034 we would be paying 16. 2% tax instead of the current 12. 4%, and in 2088 it would be 17. 3% tax. Options that reduce future expenditures by social security: 1) cut benefits. The percentage decrease to get us another 75 years is in the high teens, maybe around 17-18% across the board. This spreads the burden over everyone, including current recipients. This would also be a tremendous burden on the elderly population especially the poor: 2) raise the normal retirement age.
