Five Fallacies in the Social Security Debate
2000 (English)Report (Other academic)
This paper discusses five examples of the conventional wisdom that has often been expressed in the social security debate, even among academic economists. These are: 1. The major problem in most social security systems is that of demography: people simply live too long. 2. Disregarding the issue of demography, a Pay-As-You-Go system is inferior to a fully funded system since the former usually has a lower rate of return. 3. Disregarding the porfolio aspect (which might favor a PAYG system), a funded system dominates a PAYG system in a world of certainty. 4. The social security system is a suitable isntrument for intergenerational risk-sharing. 5. The government is a safe and reliable provider of insurance.
Place, publisher, year, edition, pages
Stockholm: IIES , 2000. , 24 p.
Seminar Paper / Institute for International Economic Studies, Stockholm University, ISSN 0347-8769 ; 686
IdentifiersURN: urn:nbn:se:su:diva-41160OAI: oai:DiVA.org:su-41160DiVA: diva2:328563