social security

The Center for Social Development at the Brown School is advising and helping to test innovations in asset building — strategies that increase financial and tangible assets for families and businesses — in several countries in East and Southeast Asia.

A confluence of changes in the health-care system are going to lead to a perfect storm that will make us realize our health-care system needs a major overhaul, says Timothy D. McBride, Ph.D., leading health economist and professor of social work.

McBride”We are headed into a time when a confluence of changes are going to lead to a perfect storm, making us finally realize that our health care system needs a major overhaul,” says Timothy D. McBride, Ph.D., leading health economist and professor of social work. McBride is available to discuss candidates’ health care plans and universal health care.

McBride”The problems with Social Security can be solved easily compared to those of Medicare,” says Timothy McBride, leading health economist and associate dean for public health. “Social Security can be fixed right now, although most people don’t want to solve it with tax hikes. We cannot solve Medicare as easily. Medicare is in a serious crisis relative to Social Security,” he says. McBride is available to discuss Social Security and Medicare.

“The problems with Social Security can be solved easily compared to those of Medicare,” says Timothy McBride, leading health economist and associate dean for public health at Washington University in St. Louis. “Social Security can be fixed right now, although most people don’t want to solve it with tax hikes. If passed today, a one-percentage point tax increase on both employers and employees could solve the Social Security problem for 75 years. If we don’t want to raise taxes, another option is to cut benefits by a similar amount and we’re done.” McBride says that the tax increase needed to fix Medicare would be six or seven percentage points in the long run. “We cannot solve Medicare as easily. Medicare is in a serious crisis relative to Social Security,” he says. McBride believes that as soon as the next President is elected “we will hear that we need to solve Medicare and Medicaid.”

“We are headed into a time when a confluence of changes are going to lead to a perfect storm, making us finally realize that our health care system needs a major overhaul,” says Timothy D. McBride, Ph.D., leading health economist and professor of social work at Washington University in St. Louis. “As the elderly population doubles between now and about 2030, projections are that we will see at least a doubling of the costs of the federal and state health and retirement programs,” he says. “That will likely be when the perfect storm hits. But if we miss it then, we will likely have missed all the storm clouds for the foreseeable future.”

Bill Michalski/WUSTL PublicationsA loan finances a young person’s education. Twenty years later, that child is working, contributing to the economy and paying off their loan. As they repay, the capitalized value of the loan pays back their debt to the previous generation in the form of a pension.Funding social security and education are often thought of as separate issues. But the two issues should be linked, says economist Michele Boldrin, the Joseph Gibson Hoyt Distinguished Professor in Arts & Sciences at Washington University in St. Louis. In the same way that younger generations take care of their elders as a kind of “return” on their parent’s investment, so too can the U.S. invest in the educational needs of its children and have the accumulated debt be paid off to retirees when it comes due.

Steven SmithPresident George W. Bush’s State of the Union address on Jan. 23 may be remembered as one of the least consequential State of the Union addresses in a generation, but its presentation could open the door on a period of real legislative compromise as both parties struggle to boster reputations in advance of the 2008 elections, suggests Steven Smith, an expert on congressional politics at Washington University in St. Louis. Video Available

According to a 2005 U.S. Department of Health and Human Services report, nursing homes in the United States in 1999 cost an average of $47,000 per year, with costs rising each year. Choosing a course of care for an elderly family member is both a financial decision and an emotional one. A business and economics professor at Washington University in St. Louis is using game theory to understand these long-term care decisions. More…

Whether you follow arguments for or against President Bush’s plan for having private accounts in Social Security, there is one benefit to Bush’s plan that is difficult to dispute: private accounts would increase activity in the stock market. The more investors in the market, the stronger the market and — ultimately — the stronger the economy. Currently, however, the market is relatively weak and will probably stay weak considering the rate at which public companies have been delisting from the market in the past five years. A professor at the Olin School of Business at Washington University in St. Louis has studied the trend of public companies turning private and finds that one factor that could ebb the exodus is strengthening the market through more investor participation.