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7.  "Remodeling Social Security," Economic Security 2000,

Washington, 1997.

8.  Quoted in Sam Beard, Restoring Hope in America: The

Social Security Solution (San Francisco: Institute for

Contemporary Studies, 1996), p. 160.

9.  Many economists also argue that Social Security benefits

reduce savings.  Since Social Security provides beneficia-

ries with retirement income, people think they have less

need to personally save for retirement.  Martin Feldstein,

"Social Security, Induced Retirement, and Aggregate Capital

Accumulation," Journal of Political Economy 82, no. 5 (Sep-

tember-October 1974): 825-62; Martin Feldstein, "Inflation,

Tax Rules and Investment: Some Econometric Evidence," Econo-

metrica 50, no. 4 (July 1982): 825-62; and Peter Diamond and

J. A. Hausman, "Individual Retirement and Savings Behavior,"

Journal of Public Economics 23, nos. 1-2 (February-March

1984): 81-114.

10. U.S. House of Representatives, Committee on ways and

Means, Background Materials on the Federal Budget and Tax

Policy for the Fiscal year 1991 and Beyond, Committee Print,

February 6, 1990, p. 30.

11. Peter Elinsky and James Buckley, "Retirement Benefits in

the 1990's: 1997 Survey Data," KPMG Peat Marwick, 1997,

p. 32.

12. Ibid., p. 34.

13. Ibid., pp. 28-31.

14. Martin Feldstein, "Social Insurance," Harvard Institute

of Economic Research Discussion Paper no. 477, May 1976.

15. Robert Kerrey, Speech to the National Press Club, Wash-

ington, September 17, 1997.

16. Beard, p. 143.

17. Martin Feldstein, "Social Security and the Distribution

of Wealth," Journal of the American Statistical Association,

December 1976, pp. 90-93.

18. Alan Greenspan, Testimony before the House Budget Com-

mittee, October 8, 1997.