In his lecture \u201cThe Logic of Entitlement Reform,\u201d Nobel Laureate Dr. Robert E. Lucas, Jr. said he is not in favor of abolishing the welfare system, but he suggested our country would be better served if welfare was not available to everyone, only the neediest 20 percent in the U.S.<\/p>\n
\u201cEvery time we promise people something we reduce their incentive to work,\u201d Lucas said.\u00a0 \u201cThat doesn\u2019t mean we shouldn\u2019t offer welfare.\u00a0 It\u2019s got a price and it\u2019s got benefits.\u201d<\/p>\n
Using himself as an example, Lucas explained that he receives a Social Security check each month that he doesn\u2019t really need.\u00a0 He\u2019s paid into the system and he receives the money, but he feels he\u2019s one of the \u201clucky\u201d ones who is being paid money he doesn\u2019t require.<\/p>\n
Looking ahead, Lucas feels one way to offset the deficit in the U.S. would be to offer Americans in their 30s and 40s the option to stop paying into Social Security and then \u201ctake their chances in private investments.\u201d<\/p>\n
Lucas explained that countries around the world routinely run budget deficits.\u00a0 Throughout U.S. history, there have been times of prosperity and times when there have been huge spikes in government spending, particularly during World War I and World War II.\u00a0 The problem, according to Lucas, is that the budget deficit in the U.S. and in many other countries has been dramatic and sustained.\u00a0 He feels the welfare system is handled in a very inefficient way and is a key source of the problem in the U.S.<\/p>\n
\u201cWe don\u2019t know who\u2019s needy.\u00a0 We don\u2019t know who is able.\u00a0 There is cheating going on in the system, everyone does it.\u00a0 People who get disability can essentially get their Social Security benefits sooner.\u00a0 The top two reasons are lower back pain and stress syndrome,\u201d Lucas said.<\/p>\n
Lucas is the John Dewey Distinguished Service Professor of Economics at The University of Chicago, a Fellow of the Econometric Society, the American Academy of Arts and Sciences, and the American Philosophical Society, and a member of the National Academy of Sciences.\u00a0 He is a past president of the Econometric Society and the American Economic Association.\u00a0 In 1995, he received the Nobel Memorial Prize in Economic Sciences and was recognized by the Royal Swedish Academy of Sciences \u201cfor having developed and applied the hypothesis of rational expectations, and thereby having transformed macroeconomic analysis and deepened our understanding of economic policy.\u201d\u00a0 Prior to his Chicago appointment, Lucas was a member of the faculty of the Graduate School of Industrial Administration at Carnegie-Mellon University from 1963 until 1974.<\/p>\n
Dr. Russell S. Sobel, who also addressed the UTC audience, was in full agreement with Lucas.\u00a0 Sobel earned his Ph.D. in economics from Florida State University.\u00a0 He has authored over 150 books and articles, including a Principles of Economics textbook.\u00a0 His research has appeared in the Journal of Political Economy<\/i> <\/b>and The Journal of Law and Economics<\/i>, <\/b>as well as media outlets such as The\u00a0New York Times, The Wall Street Journal, The Economist Magazine,<\/i>\u00a0<\/b>and the CBS Evening News.\u00a0 He serves on the editorial board for three academic journals, and has won numerous awards for both his teaching and his research. \u00a0 Sobel is a Visiting Scholar in Entrepreneurship at The Citadel.<\/p>\n
The Scott L. Probasco, Jr. Chair of Free Enterprise sponsored the Burkett Miller Distinguished Lecture Series event.<\/p>\n","protected":false},"excerpt":{"rendered":"
In his lecture \u201cThe Logic of Entitlement Reform,\u201d Nobel Laureate Dr. Robert E. Lucas, Jr. said he is not in favor of abolishing the welfare system, but he suggested our country would be better served if welfare was not available to everyone, only the neediest 20 percent in the U.S.<\/p>\n