Book Chapter: The 4% Solution

Unless the U.S. economy recovers more quickly, the country could be mired in debt for years to come and millions of Americans will be pushed to the sidelines of the economy.  The 4% Solution offers clear ideas on ways to revive America’s economy by removing government constraints and encouraging saving, investment and job creation.  Mercatus Center Senior Research Fellows Charles Blahous and Jason Fichtner have a chapter, “Social Security Reform and Economic Growth,” that discusses what reforms are needed to the Social Security program to encourage work and personal saving.  Their chapter speaks to how Social Security might be reformed to better facilitate economic growth, by removing disincentives under current Social Security law with respect to saving, labor supply and even child-rearing. Along with Blahous and Fichtner, the book contains chapters by five Nobel Laureates in Economics: Robert Lucas, Gary Becker, Edward Prescott, Vernon Smith and Myron Scholes.