In 1974, and then again in 1996, Martin Feldstein published studies of the impact of the Social Security system on private saving in the U.S. economy. He found that Social Security depressed personal saving by a substantial amount--up to 50 percent. The author uses the Feldstein data and empirical models in this article to illustrate the steps in…

The core of the U.S. social welfare system provides old-age pensions, unemployment insurance, and aid to dependent children. In recent years, as social and economic developments have created new vulnerabilities for the American family, observers are asking whether the system needs refinement and rethinking. The Project on Social Welfare and the…