Perspectives on the Social Security Crisis and Proposed Solutions.

Many economists as well as a majority of the general public are pessimistic about the future of the U.S. Social Security System. Such pessimism is justified. Current estimates are that the system will run out of funds around 2030. This is bad news for today's young workers who will, even under current law, receive only about 50 cents in benefits for every dollar they will pay in Social Security taxes over their career (Murphy and Welch, 1996). The return these workers ultimately will receive will be even less, maybe much less, depending on what is done to balance the system, and when. With its low promised return and the uncertainty about its future, Social Security may seem more like social insecurity for many of today's workers. [ABSTRACT FROM AUTHOR]