WORKERS SHOULD WANT TO PAY MORE FOR SOCIAL SECURITY |
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| Authors: | J R CLARK DWIGHT R LEE |
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| Institution: | Clark:;Professor of Economics and Probasco Chair of Free Enterprise, University of Tennessee at Chattanooga, 313 Fletcher Hall, Dept. 6106, 615 McCallie Avenue, Chattanooga, TN 37403-2598. Phone 1-423-425-4118, Fax 1-423-425-5218, E-mail Lee:;Professor of Economics and Ramsey Chair of Private Enterprise, University of Georgia, Terry College of Business, Dept. of Economics, Brooks Hall 509, Athens, GA 30602. Phone 1-706-542-3970, Fax 1-706-542-3376, E-mail |
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| Abstract: | One controversial aspect of the current Social Security system has been the relative distribution of its net costs and benefits between employers and workers. Using simple supply and demand analysis, we demonstrate that proponents and opponents of the current system are making arguments that support the position of their adversaries. In particular, proponents of the existing Social Security system should be arguing that workers pay all of the Social Security tax and then some with lower wages, while opponents should be arguing that employers are paying most of the tax. (JEL H55 , D78 ) |
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