The New Liberal Podcast Saving Social Security ft. Ben Ritz
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Aug 14, 2025 Ben Ritz, an expert from the Center for Funding America's Future, breaks down the critical issues facing Social Security, which is set for insolvency in just seven years. He presents a new plan focusing on targeted benefit reductions and smart revenue increases to ensure sustainability. The discussion also highlights the need for reforms that promote intergenerational fairness and suggests implementing a consumption tax as a robust funding mechanism. Ritz advocates for creating a Social Security system that's equitable for all, especially low-income seniors.
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How Social Security Funding Actually Works
- Social Security collects payroll taxes from current workers to pay current retirees and uses a trust fund to smooth timing differences.
- The trust fund's larger account will be exhausted in 2032, causing automatic ~24% benefit cuts if Congress does nothing.
The Trust Fund Is Not An Isolated Pot
- Surpluses were used to finance general government deficits rather than sit idle, so Social Security is entangled with the unified federal budget.
- Social Security deficits now contribute to public borrowing rather than remaining a fully separate pot.
Why The Trust Fund Matters Politically
- Maintaining the trust fund preserves Social Security's design as an 'earned benefit' linking contributions to benefits.
- Treating it as ordinary debt would weaken that political and structural constraint and risk larger long-term debt increases.