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Sen. Rand Paul (R-KY) is sounding the alarm on the bleak future of the U.S. Social Security program, warning that it could run out of money by 2034, prompting tough decisions.
Paul said that the program is quickly running out of cash to pay future obligations, and that people will have to start receiving it at a later age, during his appearance on the TimCast podcast with right-wing political commentator Tim Pool last week.
“The age has to go to 70,” he said, noting that the last time the eligibility age was raised, from 65 to 67, it was done gradually over two decades, during the 1980s.
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“We should fix those problems now and not wait till there’s going to be riots in the street,” Paul said, noting that the system’s finances were deteriorating rapidly.
He also outlined the difficult trade-offs that policymakers now face, saying that “You could also raise Social Security taxes dramatically,” to 25% from the current 15%, which he said “can keep Social Security the way it is.”
Paul, however, rejected calls to increase taxes on high earners and said, “Rich people already pay not only their fair share, they pay most of the income tax.” Instead, he said lawmakers should either “reduce the benefits or means test Social Security” because, as he put it, “We just don't have the money.”
The Committee For A Responsible Federal Budget (CRFB) has recently warned that Social Security is just seven years from a fiscal cliff that could slash benefits for millions of retirees by as much as 24% if the program’s main trust fund becomes insolvent by 2032.
Billionaire entrepreneur and Tesla Inc. (NASDAQ:TSLA) CEO, Elon Musk, has echoed similar concerns, saying that the looming Social Security shortfall could push the country toward bankruptcy.
During his appearance on The Joe Rogan Experience podcast last week, Musk said social security might have to slash benefits substantially to avoid insolvency, amid an aging population and declining worker-to-recipient ratios.
According to Musk, the way to fix this issue is to “massively increase the economic output,” which he said was only possible with advances in AI and robotics.
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