Policy Response

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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.

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