Does the institution of social security have an effect on the saving decisions of consumers? If it does, to what degree is aggregate saving increased or decreased? The dilemma of whether or not savings are affected by social security has received a great deal of attention over the years because aggregate saving is directly related to the level of capital invested, which in turn is responsible for economic growth (Aaron 1982, p. 51). Policy makers interested in stimulating the overall growth of the economy are likewise interested in the effects of their policy decisions on aggregate capital outlays. Therefore, a method of accurately measuring a change in consumer saving patterns would be a great asset when developing future policy.
© 1987 by the Board of Student Publications, University of Northern Iowa
Whitlow, Allen J.
"The Effect of the Social Security Program on the Rate of Personal Saving,"
Draftings In: Vol. 2:
4, Article 5.
Available at: https://scholarworks.uni.edu/draftings/vol2/iss4/5