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Our best anti-poverty program: private accounts cannot match Social Security's guaranteed benefits.

Publication: The American Prospect
Publication Date: 01-FEB-05
Format: Online
Delivery: Immediate Online Access
Full Article Title: Our best anti-poverty program: private accounts cannot match Social Security's guaranteed benefits.(A Special Report On Saving Social Security)

Article Excerpt
WHY DOES THE UNITED STATES and every other developed nation have a system of social-insurance pensions? The simple answer is that social insurance is intended to ensure basic income to those no longer able to work. These include the elderly, the disabled, orphans, and widows and widowers with small children. "Ensure" means that incomes must be available reliably; "basic" means that government's obligation is limited. That is why social-insurance pensions typically replace a larger fraction of earnings of those at the bottom of the wage ladder than those at the top. Social Security benefits also rise as average earnings increase. As Bernard Wasow of The Century Foundation points out, in 1935, when the Social Security Act was passed, "basic" may not have included...

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