Should the U.S. Privatize Social Security?
Over Thanksgiving dinner, three generations of the Perkins family debate a hot topic: President George W. Bush's proposal to reform the US Social Security system. While the family's octogenarian grandparents are benefitting from the program, their granddaughter backs the idea of allowing workers to contribute directly into personal accounts. As the family chews over the pros and cons of privatizing the system, they touch on subjects such as expected rates of return, added risks, and a potential funding gap if younger workers stopped paying into the system. This case asks students to consider whether the United States should shift to a system of personal accounts - and, if so, whether it should be managed by the government or by the financial services industry.
Case id: 090317
Supplemental Material: Teaching Slides