Social insurance and elderly entitlement reform: are they compatible?
There is no inconsistency between Social Security and Medicare reform and a firm commitment to the concept of social insurance. The retirement benefit components of these programs are not part of social insurance. Social insurance allows for people who experience low-probability random bad events to be compensated by others. An event, such as reaching retirement age, is a high-probability event and not a candidate for social insurance.
Private Enterprise Research Center, Texas A&M University, College Station, USA. t-saving@tamu.edu
Thomas R
TR
Saving
D000368:Aged; D018166:Health Care Reform; D006299:Health Services for the Aged / Q000191:economics*; D006801:Humans; D006278:Medicare / Q000191:economics*; D012179:Retirement / Q000191:economics*; D012943:Social Security / Q000191:economics*; D014481:United States