Open Yale CoursesECON 251: Financial TheoryLecture 11 - Social Security<< previous session| next session >>Overview:This lecture continues the analysis of Social Security started at the end of the last class. We describe thecreation of the system in 1938 by Franklin Roosevelt and Frances Perkins and its current financial troubles.For many Democrats, Social Security is the most successful government program ever devised and for manyRepublicans Social Security is a bankrupt program that needs to be privatized. Is there any way to reconcilethe views of Democrats and Republicans? How did the system get into so much financial trouble? We willsee that the mess becomes quite clear when examined with the proper present value approach. Present value
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This note was uploaded on 02/08/2012 for the course ECON 251 taught by Professor Geanakoplos,john during the Fall '09 term at Yale.