The Legacy Debt Associated with Past Social Security Transfers

摘要: A number of studies have used estimates historical and projected lifetime net transfers (benefits less taxes) by birth cohort under the Old-Age Survivors Insurance program to calculate compare aggregate present-value sum such for selected birth-cohort groups. Those calculations indicate that, from a accounting perspective, earliest generations participants received large later participants. Some recent referred this cumulative transfer as “legacy debt” characterized it burden borne generations. This article clarifies legacy debt concept discusses conditions required exist in meaningful economic sense.