Journal Article

What fiscal surplus?

Abstract: Proposals to shore up Social Security using future budget surpluses neglect to mention that Social Security itself produces these surpluses. Moreover, the projected budget surplus is dwarfed by Social Security's present shortfall of $7 trillion-$10 trillion, which consists of the benefits that living adults will receive minus their payroll tax payments. This shortfall represents an addition to living adults' wealth that has encouraged greater current consumption, lowered national saving, and widened trade deficits.

Keywords: Social security; Budget;

Bibliographic Information

Provider: Federal Reserve Bank of Cleveland

Part of Series: Economic Commentary

Publication Date: 1998

Issue: Sep

Order Number: 2