ABSTRACT
This chapter examines several important problems and issues in the Old-Age, Survivors, and Disability Insurance (OASDI) program. It evaluates the arguments for an increase in the full retirement age and the viewpoint that workers do not receive their money's worth under the Social Security program. The chapter explains whether Social Security retirement benefits are adequate and the reasons why a large proportion of disability income claims are denied. The adequacy of Social Security benefits depends on the measure of adequacy used. These measures include poverty thresholds, replacement rates, the extent to which vulnerable groups are protected, and the extent to which Social Security benefits keep people off welfare. The chapter illustrates the appropriateness of the current definition of disability under the disability income program. It describes the attitudes of Americans toward the Social Security program. The chapter demonstrate the proposal for reducing payroll taxes to stimulate output and employment.
