Financial aid may also be provided in the form of loans, grants, bursaries, scholarships, fellowships, debt reduction, interest relief, and work programs.
The financial aid provided may come in the form of loans, grants, bursaries, scholarships, fellowships, debt reduction, interest relief, and work programs.
That could change, of course, but it is worth pointing out that based on the analysis in the much-cited Alberto Alesina paper connecting austerity and growth, one of the key causal relationships is the effect of debt reduction on high interest rates.
"Governor Bush's plan gambles with our prosperity by bringing back deficits, draining Social Security, delaying debt reduction and fueling higher interest rates," he said, adding that the governor's tax cut proposal would "lavish more on those who need it least".
"I will devote all interest from debt reduction to shore up Social Security," Mr. Gore said.
By putting downward pressure on interest rates, debt reduction would also stimulate economic growth, creating jobs and producing more payroll tax revenue to help keep Social Security healthy.
(The E.C.B.'s continued obsession with holding down inflation, at a time when countries like Greece, Spain, and Italy desperately need looser monetary policy, is a quintessential example, as is U.S. policymakers' concern with debt reduction at a time when interest rates are at historic lows).
Set aside a lump of monthly income for real debt reduction (not just paying off interest).
I'll devote all the interest savings from debt reduction to the Social Security trust fund.
On Tuesday, the Ford Motor Company, which did not eliminate any debt in a bankruptcy filing as G.M. and Chrysler did, said its debt reduction actions in 2010 would reduce interest expenses by $800 million.
Although he says he would merely allocate to Social Security the interest savings from debt reduction, his plan amounts to sending the bill for the retirement system's shortfall to future generations of taxpayers.
