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Social Security Programs (social + security_program)

Distribution by Scientific Domains

Humanities and Social Sciences	80%

Selected Abstracts

Alan Greenspan on the Economic Implications of Population Aging

POPULATION AND DEVELOPMENT REVIEW, Issue 4 2004
Article first published online: 15 DEC 200
At the 2004 annual symposium of central bank leaders sponsored by the Federal Reserve Bank of Kansas City at Jackson Hole, Wyoming, Alan Greenspan, Chairman of the US Federal Reserve Board, devoted his opening remarks on 27 August to a discussion of the economic implications of population aging. The full text of his remarks is reproduced below. Greenspan's high prestige and great influence on US economic policy lend special interest to his views on this much-discussed subject (see also the next Documents item in this issue). He outlines the coming demographic shift in the United States in language that is characteristically cautious and qualified. (The elderly dependency ratio will "almost certainly" rise as the baby boom generation retires, Greenspan says, although elsewhere he terms the process, more accurately, inexorable.) The main factor responsible for population aging he identifies as the decline of fertility. Immigration is an antidote, but, to be effective, its size would have to be much larger than is envisaged in current projections. Greenspan's assessment of the economic consequences of the changing age structure highlights the prospect of a deteriorating fiscal situation in the United States: chronic deficits in the Social Security program over the long haul, assuming that existing commitments for benefits per retiree are met, and even greater difficulties for the health care system for the elderly,Medicare,in which the effects of increasing numbers in old age are amplified by advances in medical technology and the bias inherent in the current system of subsidized third-party payments. The sober outline of policy choices imposed by population aging,difficult in the United States, but less so, Greenspan notes, than in Europe and Japan,underlies the need for counteracting the declining growth of the population of labor force age through greater labor force participation and later retirement. Beyond that, growth of output per worker can provide the key "that would enable future retirees to maintain their expected standard of living without unduly burdening future workers." This requires continuation of policies that enhance productivity, such as deregulation and globalization, and greater investment. In turn, the latter presupposes greater domestic saving, both personal and by the government, as the United States cannot "continue indefinitely to borrow saving from abroad." Demographic aging requires a new balance between workers and retirees. Curbing benefits once bestowed is difficult: only benefits that can be delivered should be promised. Public programs should be recalibrated, providing incentives for individuals to adjust to the inevitable consequences of an aging society. [source]

Social Security and Growth in an Altruistic Economy

GERMAN ECONOMIC REVIEW, Issue 1 2002
Berthold U. Wigger
This paper studies the macroeconomic impact of private and public intergenerational transfers in the presence of endogenous growth. It focuses on two-sided altruism implying that individuals have both a motive to make gifts to their parents and a motive to leave bequests to their children. The growth effects of social security depend on whether children are making gifts to their parents or parents are leaving bequests to their children. Which of the transfers is operative, in turn, depends on the size of social security benefits. Social security is legislated endogenously. The introduction of a social security program which definitely reduces per capita income growth and harms future generations is contemplated by altruistic individuals even if non-altruistic individuals disapprove it. [source]

Welfare municipalities: economic resources or party politics?

INTERNATIONAL JOURNAL OF SOCIAL WELFARE, Issue 1 2001
Norwegian local government social programs of the 1920s
This article analyses the introduction of Norwegian local government social security programs for the elderly, disabled persons, widows and single mothers in the 1920s. The role of local government as an agent and initiator of welfare state development has been for the most part neglected within the welfare state literature. Indeed, the first social security programs in Norway were introduced by local governments, affecting nearly half of the population. Even if these programs were not very generous compared with the social security programs of our time, many of them were equal to, or even more generous than, the national pension scheme introduced in 1936. This article examines what distinguished the social security municipalities from those that did not implement such programs, and the variation in generosity profiles. The conclusion is that the main determinant regarding the implementation and generosity of the local social security programs is the political strength of the two Norwegian socialist parties at the time , the Social democratic party and the Labour party , both being too impatient to wait for a national social security plan, and both being willing to mobilise economic resources through taxation and borrowing. [source]

Social Policy in Harsh Times.

INTERNATIONAL JOURNAL OF SOCIAL WELFARE, Issue 1 2000
1990s, Finland, Norway, Social Security Development in Denmark, Sweden during the 1980s
For the past two decades, Nordic social policy has been subject to a range of serious challenges, among which economic problems and critiques by neo-classical economists have been most prominent. This article raises the question whether Nordic social policy has significantly changed during this period of challenges. Based on an empirical analysis of social expenditure data and three central social security programs, this article provides evidence that changes in Nordic social policy over this period have, in fact, been relatively minor. Indeed, the four welfare states of Denmark, Finland, Norway and Sweden have shown remarkable resilience considering the harsh challenges that they have been exposed to since the early 1980s. [source]