What about the argument that expanding Social Security might discourage private saving?
To some extent the goal is to discourage private savings. We’re encouraging people to save in ways that are not very well targeted to supporting them in retirement. Expanding Social Security is a way of telling people: You don’t need to do that; here’s a better way.
So what happens if the next administration and Congress do nothing about retirement? What if we keep the status quo?
The threat is that the vast majority of workers retire without enough to live on. People will continue to save, to try to assure themselves a secure retirement. And some of them will get it, and some of them won’t, due to factors entirely outside their control.
This article was provided by Bloomberg News.