ABSTRACT
This chapter describes the demographics and economics facing the United States compared to other countries. It explores the sources of the current enthusiasm for individual accounts in the United States. The chapter discusses the problems and risks associated with replacing part of the current social security system with individual accounts. It also discusses the events and examines the potential for individual accounts to offer higher returns. Social insurance reflects a long history of people getting together to help themselves. One important reason for the more moderate demographic shifts in the United States is that the fertility rate in the United States remains at two children per woman. Economists estimated the net present value of pension contributions, expenditure and unfunded liability for the major social security systems. The dependency ratio in the United States is lower and is projected to remain lower than in other developed countries for several reasons.
