Does Social Security Worsen Inequality?
Gaps between the rich and poor grow once people hit retirement. Some say privatizing Social Security will increase wealth inequality among retirees. This Commentary argues it won’t and suggests that the current system may be reducing wealth mobility from one generation to the next. This Commentary is based on a presentation given at the CATO Institutes conference on Social Security Privatization, February 5—7, 2001.
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 clevelandfed.org for updates.