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They argue that the key component of any reform is the treatment of the implicit liabilities of a country’s social security system.
)This article argues for a balanced approach to Social Security Reform based on tax increases, benefit cuts, and Social Security Trust investment changes and a return of the Social Security program to its original mission of providing "adequate provision" for its beneficiaries.
Social Security reform should recognize that the capacity to continue working and the ability to afford to retire both influence the age at which people plan to retire.
An examination of the main welfare ideologies that have influenced the development of contemporary social security systems suggests that the market and individualism have a role to play in a range of approaches to reform.
But it argues also that social security reform is more a pretext than a requirement for internalizing such a positive externality.
Simulations of this approach to Social Security reform show substantial long-run improvements in U. S. living standards.
This is perhaps the most far-reaching synthesis yet envisioned of functional and implementable social security reform.

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