BU Now » social security

Social Security: “Fiscal child abuse”

Dick Taffe — Wed, 25 Aug 2010 21:34:39 +0000

The 2010 election season is under way and, as usual, the fate of the federal Social Security system is part of the political debate. College of Arts and Sciences economics Professor Laurence Kotlikoff, author of “Jimmy Stewart is Dead: Ending the World’s Ongoing Financial Plague with Limited Purpose Banking,” says as the Social Security program marks its 75th anniversary, it’s time to rebuild it into “Personal Security System” retaining the 1930s-vintage system’s best features, scrapping the rest, and covering its costs. Continuing Social Security without change, he writes in a Bloomberg commentary, amounts to “fiscal child abuse.”

“Our nation is in terribly hot water. Business as usual is no answer. The only way to move ahead is to radically reform our retirement, tax, health-care and financial institutions to achieve much more for a lot less. The Personal Security System is a major step in that direction. It meets all the legitimate goals of Social Security without the system’s waste and penchant for robbing the young.”

Contact Laurence Kotlikoff, 617-353-4002, kotlikoff@bu.edu

What next for healthcare reform?

Dick Taffe — Mon, 01 Feb 2010 17:03:11 +0000

GOP Congressional leaders, enboldened by their Senate win in Massachusetts, are pushing Democrats to start over on efforts to reform the healthcare system. In an opinion piece in Politico, history Professor Bruce Schulman says House Dems should take a page from FDR history on how Social Security was created and just pass the Senate bill.

“Passing the Senate bill might mean swallowing hard in the short-term, but if Americans enjoy new benefits and protection against catastrophic illness, the politics, history shows, could shift.”

Contact Bruce Schulman, 617-353-8306, bjschulm@bu.edu

Improving consumer financial literacy

Dick Taffe — Thu, 25 Jun 2009 19:43:42 +0000

Congress holds a hearing today on improving consumer financial literacy under the new regulatory system. School of Management Professor Zvi Bodie, a widely recognized authority on personal finance, recommends in a Washington Post commentary some concrete steps to improve consumer financial literacy and suggests a new standard of prudence for investment advisors.

“Instead of focusing on the probability of ‘success’ in meeting some assumed target level of assets by an assumed target date, fiduciaries should be required to address the potential severity of a failure to meet a minimum standard of living in old age.”

Contact Zvi Bodie, 617-353-4160, zbodie@bu.edu

Financial crisis

Jo Breiner — Thu, 16 Oct 2008 17:32:39 +0000

The following Boston University professors are available to comment on the various aspects of the financial crisis:

School of Management Professor Mark Williams, an expert on risk management and former Federal Reserve Bank examiner who teaches in the school’s Finance Department.

School of Management Professor James Post, an expert on corporate governance and business ethics. He teaches a course called “Corporate Governance, Accountability, and Ethics.” He is the author of “Business and Society: Corporate Strategy, Public Policy, Ethics” (McGraw-Hill).

School of Management Professor Zvi Bodie, a widely recognized expert on pension finance, social security reform.

School of Management Professor Scott Stewart, an investment management expert and former Fidelity funds manager.

School of Law Professor Cornelius Hurley, director of the school’s Morin Center for Banking and Financial Law. He is former chief counsel to the Fed Board of Governors.

School of Law Professor Tamar Frankel, an authority on securities law, corporate governance, and legal ethics. She is the author of “Trust and Honesty: America’s Business Culture at a Crossroad” (Oxford U. Press) and “Securitization” (2nd ed. 2006).

School of Law Professor Charles Whitehead, a securities law expert. He spent 20 years as an in-house counsel in international securities and banking.