AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
The Indicator from Planet Money
What happens when Social Security runs out of money?
Oct 29, 2024
Jason Furman, an Economics professor at Harvard and former chair of the Council of Economic Advisers under Obama, discusses the looming Social Security crisis. He highlights the imbalance between incoming payroll taxes and payouts, predicting potential depletion by 2031. Furman also explores the political implications of proposed tax cuts and borrowing to sustain funding. He introduces a new indicator for assessing America's financial health, emphasizing the importance of addressing national debt and fostering bipartisan solutions to avert financial disaster for retirees.
09:25
Episode guests
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- The projected depletion of the Social Security Fund by 2031 could lead to nearly 20% cuts in benefits for retirees unless Congress acts.
- Rising federal debt fueled by proposed tax cuts may increase interest rates, impacting government spending and daily financial concerns for citizens.
Deep dives
Concerns Over Social Security Funding
Social Security is a critical part of the U.S. government's financial structure, accounting for over 20% of government spending. Current projections indicate that the Social Security Fund could run out of money by 2031 due to a gap between incoming payroll taxes and outgoing benefits. This potential shortfall raises fears that retirees may face automatic benefit cuts of nearly 20% unless Congress intervenes. Historical compromises in the past, such as raising the retirement age and adjusting payroll taxes, demonstrate that bipartisan efforts may be necessary to stabilize the program.
Get the Snipd
podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any
moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share
& Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode