This article outlines six realities that will likely shape the policy response to the long-run fiscal imbalance. First, defense spending will likely continue trending downward as a share of GDP over the long run because defense needs do not rise proportionately to income, and defense will likely...

We discuss the fiscal implications of a recent proposal to give workers an option to receive a parental leave benefit funded by the Social Security system if they accept an offsetting retirement benefit reduction with the same present discounted value. In principle, the proposal could avoid the...