Skip to main content

A Simple Proposal for Privatizing Social Security


In an area as contentious as federal budget policy-witness the tortuous road to the just recently settled budget for fiscal year 1996-lawmakers agree about one thing: The Social Security system as we know it is unsustainable in the long run. Unfortunately, this recognition has yet to yield any concrete action. The system remains the proverbial third rail of budget politics-touch it, and your political life is over.

In an area as contentious as federal budget policy-witness the tortuous road to the just recently settled budget for fiscal year 1996-lawmakers agree about one thing: The Social Security system as we know it is unsustainable in the long run. Unfortunately, this recognition has yet to yield any concrete action. The system remains the proverbial third rail of budget politics-touch it, and your political life is over.


Suggested citation: Altig, David, and Jagadeesh Gokhale, 1996. "A Simple Proposal for Privatizing Social Security," Federal Reserve Bank of Cleveland, Economic Commentary, 05.01.1996.

Upcoming EventsSEE ALL