Peter Diamond

Peter Diamond is Institute Professor of Economics at MIT and president-elect
of the American Economic Association.

Recent Articles

Social Security: The Right Fix

Last year, President Bush appointed a commission to design a Social Security reform that included voluntary individual accounts. Appointees chosen for the commission were all sympathetic to this partial-privatization approach. Before signing on, they also accepted the commission's charge of restoring long-term financial soundness without increasing payroll taxes. In December the commission presented three plans (called models). The political response has been intriguing. Congressional Republicans, evidently concerned about voter backlash, have kept their distance from the plans. House Democrats, meanwhile, have introduced bills containing the plans (which they oppose) in an attempt to force the Republicans to take a stand. Today it's hard to find a Republican who admits to supporting "privatization," and some are walking away from any form of individual accounts. But privatization of Social Security is only sleeping, not dead. Social Security is likely to play a key role in the...