Arm Yourself for the Coming Battle over Social Security (Spanish version)

Description

The U.S. Social Security system is in deep trouble--and that's not just bad news for your friends and family. It's also bad news for your company. Unless the Social Security system is changed, by 2041 the system will be utterly insolvent. In the next decade, the very prospect of the rising deficit will mean serious pressure on recent tax cuts, higher long-term interest rates, increased pension-funding costs, and other punishing conditions for U.S. businesses. Executives need to participate in the growing debate about Social Security reform, says Robert Pozen, a visiting professor at Harvard Law School who served on the President's Commission to Strengthen Social Security. In this article, he urges business leaders to take a stance on how the system should be reformed, suggesting they work with interest groups to make their voices heard. Pozen outlines the three main alternatives executives might choose to support: increasing contributions to Social Security, decreasing the growth of benefits for more affluent workers, and increasing investment returns on Social Security assets. What's needed to fix the current system, he contends, is a careful balance of all three.

Keywords

Business & government relations Executives Government policy Government regulations Leadership Social Security