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Economic Commentary

Should Social Security Be Privatized?

Many developed countries operate comprehensive public pension programs to protect the elderly against a wide range of adverse economic circumstances. In the United States, the Social Security program has been in operation for 60 years and has expanded over time in terms of both payroll tax rates and per capita benefits. The manner in which such programs are financed and the methods used to provide retirement and other benefits exert a significant influence on national saving, the labor supply, and ultimately, economic growth.

The views authors express in Economic Commentary are theirs and not necessarily those of the Federal Reserve Bank of Cleveland or the Board of Governors of the Federal Reserve System. The series editor is Tasia Hane. This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. This paper and its data are subject to revision; please visit for updates.

Suggested Citation

Gokhale, Jagadeesh. 1995. “Should Social Security Be Privatized?” Federal Reserve Bank of Cleveland, Economic Commentary 9/15/1995.