Summary

There is a lot of confusion in the debate over Social Security privatization, much of it deliberate. This essay discusses the meaning of the trust fund, which privatizers declare either real or fictional at their convenience; the likely rate of return on private accounts, which has been greatly overstated; and the (ir)relevance of putative reductions in far future liabilities.

Recommended Citation

Krugman, Paul (2005) "Confusions about Social Security," The Economists' Voice: Vol. 2 : Iss. 1, Article 1.
DOI: 10.2202/1553-3832.1048
Available at: http://www.bepress.com/ev/vol2/iss1/art1