Think Twice Before Messing With Social Security (w/Kathleen Romig)
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On this episode of the Utterly Moderate Podcast we are going to discuss a topic that was back in the news recently with the debt ceiling negotiations: Social Security.
A number of politicians and elected representatives have recently suggested that we make major changes to the Social Security program, changes which could have a substantial (and I think likely negative) impact on American seniors.
We will all eventually age, so this means it will impact us.
A few quick notes on Social Security before you dive into this podcast episode:
- It is important to note that this is not a partisan issue (at least among voters). Surveys show that strong majorities of Americans—whether old or young, high-income or working class, Republican or Democrat—believe that it is crucial for the U.S. to preserve full Social Security benefits for future generations, even if it means increasing payroll taxes.
- Social Security is the biggest source of retirement income for most retirees.
- Social Security is arguably America’s most effective poverty-fighting program, bringing elderly poverty down from almost 38% to less than 10% (lower than the national poverty rate).
- Social Security is a social insurance program. This means it will continue to pay benefits regardless of whether or not you live long enough to use more benefits than you paid for—which a typical American retiree likely will.
- Some argue that you could personally invest money in the stock market, instead of putting it into Social Security, and get a better return on your money for retirement. While this is no doubt true for some, millions of Americans would not likely be able to save as much on their own as they would through the “forced retirement planning” of Social Security.
- Social Security will never “go broke.” It will always receive money from current workers, every two weeks, to pay for current retirees. Due to falling fertility rates, however, the program will only be able to afford to pay 77% of promised benefits beginning in the 2030s.
- According to Social Security expert Kathleen Romig, the guest on this episode, full benefits can continue beyond this point if we remove the taxable earnings cap (currently around $160,000) and increase payroll taxes on employees and employers from the current 6.2% to somewhere around 7% each.
On this episode, we play clips of a summer 2021 podcast conversation we had with Social Security expert Kathleen Romig from the Center on Budget and Policy Priorities. Enjoy!
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Episode Audio:
- “Please Listen Carefully” by Jahzzar (Free Music Archive)
- “Star Blessed Night” by Ketsa (Free Music Archive)
- “Draw the Sky” by Paul Keane (licensed through TakeTones)
- "Reading by Lamplight" by Maarten Schellekens (Free Music Archive)
- “Happy Trails (To You)” by the Riders in the Sky (used with artist’s permission)
- FDR on Social Security (publicly available on YouTube)
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