Social Security Reform Issues

Abstract

The Social Security Program has traditionally been a strongly supported and popular program for providing income protection for workers and their dependents from old-age, death, and disability. Social Security by most accounts has been a successful program, particularly in helping to lower the poverty rate for the elderly from 35.2 percent in 1959 to 10.5 percent in 1998. However, the program is currently projected to be facing a financial shortfall. Consequently, a push to reform the program has been under way in some circles. This paper examines the issues facing the Social Security program that has brought about the discussion to reform the program. In addition, various potential reform ideas and the issues surrounding those reform proposals will be investigated. Both traditional types of reforms, e.g., benefit cuts and tax increases, and privatization are considered.