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The article “It’s Time to End Social Security for the Rich” discusses a potential (partial) solution to the growing problems with Social Security funding that will become very salient in the future. In this assignment, you will read:
1. Read the Brookings[Piece by Stuart Butler]
2. Read Saving Social Security by Diamond and Orzsag
* I HAVE ATTACHED BOTH ARTICLES
Then, I want you to pretend you are a policy analyst for a local politician who has been tasked to write a short policy piece. In 2 – 3 pages (NO MORE THAN 3), I want you to address the following:
– Overview of the policy problem at hand
– What is the economic rationale for the current Social Security system
– What is the economic rationale for the abolishing the current system and installing one similar to the one that Butler advocates.
– Be sure to focus on key issues: e.g. adverse selection, moral hazard, fairness, redistribution.
– What would you advocate your politician do?
Support maintaining the system that is currently in place (and finding a new way to insure solvency) or install a program that acts more like a system for the poor?
Your short papers should have the following format:
– No more than 3 pages
– Types with 1.5 – 2 spacing and 11-12 pt font
– Separate headings
– Any reference(s) in proper format
I HAVE ALSO ATTACHED A SHEET WITH STRUCTURING AND TIPS AND EXAMPLES. ALSO SOME POWERPOINTS FOR REFERENCE TO THE KEY ISSUES AND POLICIES.