JOHN B. SHOVEN
I want to thank Henry Aaron for offering such a spirited defense of continuing the single-tier defined benefit structure of the Social Security system and the four discussants for their thoughtful remarks and helpful ideas. My view about the desirability of adopting a two-tier program for Social Security is, if anything, strengthened by this symposium. After the majority of the members of the Advisory Council on Social Security advocated one form or other of a supplementary defined-contribution tier to Social Security, the majority of the distinguished discussants at today's panel did likewise. As I count heads, Tobin, Cutler, and Barro all favor some form of individual accounts over simply trying to repair the existing defined-benefit Social Security system once more. 1 The score is three-to-one, which is a little stronger than the seven-to-five count on the Advisory Council.
There are many reasons for favoring the two-tier approach. First, all three of my top ranked two-tier plans offer