Pursuing benefit cuts over tax hikes would grow the economy and reduce the national debt burden.
The federal government faces an enormous fiscal challenge. Deficits and debt are both far higher than they should be, and early in the 2030s — when both Social Security and Medicare are projected to become insolvent — the budget faces a day of reckoning. Taxes must increase, or spending must be cut.
But a new analysis of Social Security reform options from the University of Pennsylvania’s gold-standard Penn Wharton Budget Model shows there are two ways to address the debt: the hard way and the easy way. Economic growth is a dimension that Washington’s usual scorekeepers largely miss. But it opens ...
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