A solution to social security and education funding: it's all part of the cycle of life
Bringing new meaning to student loans (http://news-info.wustl.edu/tips/page/normal/10412.html)
Nov. 1,
2007 --
 |
| Bill Michalski/WUSTL Publications |
| A loan finances a young person's education. Twenty years later, that child is working, contributing to the economy and paying off their loan. As they repay, the capitalized value of the loan pays back their debt to the previous generation in the form of a pension. |
Download
|
Funding social security and education are often thought of as separate issues. But the two issues should be linked, says economist Michele Boldrin, the Joseph Gibson Hoyt Distinguished Professor in Arts & Sciences at Washington University in St. Louis. In the same way that younger generations take care of their elders as a kind of "return" on their parent's investment, so too can the U.S. invest in the educational needs of its children and have the accumulated debt be paid off to retirees when it comes due.
|
