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Social insurance and elderly entitlement reform: are they compatible?
1Private Enterprise Research Center, Texas A&M University, College Station, USA. t-saving@tamu.edu
Abstract:
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.
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