Inequality fuels growth of social security programs, study finds.
The article explores how social security and wealth inequality influence each other over time. By studying a model of voting and economic dynamics, the researchers found that higher wealth inequality leads to higher social security taxes. This interaction results in larger social security programs, with the dynamic relationship explaining more than half of social security growth in the U.S. economy. The findings suggest that political and economic factors can significantly impact social security policies and outcomes.