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Social Security

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In a pay-as-you-go (PAYGO) public pension program like the U.S. Social Security system, the elderly dependency ratio provides a crucial link between payroll tax rates and benefit levels: An increase implies that lower benefit levels or higher tax rates will be needed to maintain system solvency.

Suggested citation: “Social Security,” Federal Reserve Bank of Cleveland, Economic Trends, no. 97-10, pp. 15, 10.01.1997.

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