As productivity increased in the 1950s, 1960s, and 1970s, the United States made substantial improvements in Social Security benefits—raising benefits in tandem with wages (to maintain income replacement), incorporating disability benefits, and allowing for early retirement. Although the share of the population in retirement will rise in coming decades, the U.S. economy can readily afford to maintain a strong Social Security program because productivity will rise faster than population. Even the relatively modest projections for productivity gains made in the recent trustees report will support a much higher standard of living for all in the future.
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