Another credit rating agency has reduced its confidence in U.S. debt. Cato's Romina Boccia explains why it should spur greater interest in a fiscal commission that would stabilize the debt and protect politicians from some of the electoral fallout. Hosted on Acast. See acast.com/privacy for more information.

Romina Boccia, a budget and entitlement policy expert at the Cato Institute, dives into the myths surrounding Social Security. She explains that the Social Security Trust Fund is essentially a mirage filled with IOUs, rather than a real fund. Romina critiques how it operates like a Ponzi scheme, causing sustainability issues in light of a declining worker-to-beneficiary ratio. She also outlines urgent reforms needed to prevent fiscal crises that would burden future generations, while advocating for changes in benefit calculations to enhance equity.

Experts Romina Boccia and Brian Riedl discuss the dire fiscal situation of Social Security in the US, highlighting the transition from surpluses to deficits and the impact on the national debt. They explore reform options, financial intricacies, and propose solutions such as simplifying benefit calculations and creating an independent fiscal commission to address the growing deficits and prevent a fiscal crisis.