If future economic growth rates average as little as 2.4 percent-far slower than the 3.0 percent average growth rate the U.S. economy posted over the last 75 yearsthe Social Security system will remain solvent long into the foreseeable future. A shortfall of 0.4 percent of GDP as projected by the CBO could be paid for merely by repealing the Bush tax cuts that go to the richest 1 percent of taxpayers. Those tax giveaways to the best off in our society will cost 0.6 percent of GDP if they are made permanent.

a. How does that position differ from your textbook's position that the real problem with Social Security is not its solvency but the future mismatch between real production and real expenditures?

b. What do both these positions suggest about the effectiveness of proposals to divert Social Security funds into private accounts? (Radical)