Social Security Finances
Correlations with Unemployment:
A proposal for 'Unemployment Insurance' for Social Security

Unemployment Insurance for Social Security

The pages in this section offer a look, in varying levels of detail, at the periodic correlation of the unemployment rate with the Net Increase in the Social Security Trust Fund's assets -- i.e., the measure which keeps the system solvent.

This correlation can be used to devise a plan of "unemployment insurance" for the Trust Fund, under which it receives "unemployment compensation" to counter the shortfall caused by each percentage point of unemployment over a standard level (e.g., 4.5% -- a level at which the SS Trustees predict the system would remain solvent indefinitely).

This is a more structurally and politically relevant approach to solving the Social Security "problem" than the punitive measures -- against the vast majority of participants in the system -- that seem to have overtaken all public discussion on the topic.

Short (op-ed length)    
Full introduction PDF
Technical details  
Trust Fund long-term projections *  

*     This collection of charts shows not only the fact that the Trustees make three projections based on different assumptions, one of which never goes bankrupt, but also how these projections have changed over the past decade.

Posted: October 2, 2011
Last revised:
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