tv Fmr. Federal Officials Discuss U.S. Debt Social Security Spending CSPAN May 18, 2024 2:18am-3:09am EDT
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income. that brings you back to the point, mainly that okay but all these people suddenly appeared out of the woodwork and said now would like to buy love treasuries because a yield level so high. what if the fed begins to a medically if interest rates? will this buyers sell? was a move around? will become to equities are cash? a lot of things that makes this discussion much more worrying because you have certainly a whole new set of buyers compared which had before. these buyers only came in because the level of yields without went up so much. >> michael, quickly. >> i would say, i disagree all is well. we have had the past decade a few events. on days like today when we don't see any issues, is because the hsg survived a lot of liquid and the return off is an event. i wouldn't say everything is fine but . i guess with the fed could do
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one would details veto , i'm offended that because a ak with my book. in light of the other question, the idea of distinguishing accept treasury purchases into market functioning purchases and qe purchases. have done that maybe they would have kept to be going quite so long. >> there's reason why. we have to go. thank you so much. this is been terrific. thank you so much. i love we are color coded. we did that on purpose. thank you so much. [applau force. it so much. >> thank you for having us here today for this important event and deeper.
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we've been working on this issue for many years. we ran on task force in 2010 that is the shadow and a few of the recommendations on social security and the secretary of education is president who committed to fiscal policy. one thing we are going to do is link the policy to the money policies stakeholders care about and explain why it needs to be invested. we are going to zero in on social security and i had a fantastic group of folks here
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that help folks understand worried biden and where we might be going and what it could look like. our work with the program in the two of them. package to resolve social security packages. the situation has only gotten worse we continue to work on this issue. many members of congress are trying to work toward solutions almost and very few are eager to get out there but we can remain cautiously optimistic memory be movement and the importance of
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vice. as a recent survey showed 80% of americans are worried are extremely worried social security will be available for the and that's understandable given the headlines but also a little perplexing benefits will be paid out so people shouldn't be buried worry that it will be all you could talk about how social security financial
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a bond, nothing is different than the year before and if you could level we dive into the dark about where the government and why it is so i sometimes say you read the new york times article mark you pretty much know what you need to know this is. and it is the main challenge and social security is a retirement
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social security is learned to not a different topic the details so we have a system where it's based on formula sought to be pay-as-you-go but if the demographics trained you can no longer afford casting vonnegut. the subset of automatic increase in tax but it's a formula we will have to do something and there's not enough coming in and you look at society, more people
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and it's not going to be enough to finance agreement and focus. the retiree in their i think it's about three to one editorial three to one parameters for the program. >> it's important to remember it's because the coloring and the one thing that's not true is people are think longer so it's not an annual income sense so
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energy philosophy. >> we have things looking over this list 70s and 80s and talk about the parallels. >> one key difference is the problem is bigger and i would think two additional points for things that i think are different in the broader context of the federal budget, it's overall in worse shape going back to the first session that is around one 100% projected even higher by the time security
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trust funds run dry. in the light 70s early 80s, it's like a third less room to maneuver any scientist but i think it's fair to say there's more political polarization the concern was that we were able to do it is important someone reading them ranking the dental is something will have to give in the rocky legislation but in 1979 projections for 30 years
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and what happened was recessions but trust fund at that time was very small so you don't have a large trust fund in the list is session, you can have a system that appears they thought partially because they already have close to so it was much less thing you have to do now. have to do between two and four and a half times. was a larger problem to have the
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same run right there is a recession program define now we are almost transition and now it is change 30, 40 years ago. >> they will look to reforms and was completely different causes and in 1983 people come back. he could have easily gone back with 2033, looking out for percent or minus 20% forever and
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policymakers to appreciate logic basket hands. >> policymakers. to begin, we talked about given where we are now from is it realistic to think they want to maintain strictly pay-as-you-go fill the gap shows up in 2033 or early two part about wrote products. >> i think it's likely we are not. the money and go out for benefit
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in the type of tax increase we are going to be acting right before, we don't have time filling and i think we are going to use it also respected. it means move beyond benefits and the payroll taxes resolve social security systems we're going to end up financing and it does not change the trajectory so i think we're going to end up doing that terms aren't enough and as the trust fund or
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deadline of 203435 defending on how you look at, i think there is a political a benefit of having a deadline like that, it was actually in a situation where incentive is to procrastinate can to issue that so i think there is value in an artificial deadline like that. i appreciate the concern dropping that will get out of whack and we have to make adjustments so it will be quick to have a rule of faith. i do appreciate that. >> i think there is a risk and opportunity.
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it is a benefit and rollback the retirement payment. pond whatever form and we can depend on that. at the same time the private side rollout, uk where every worker is a supplementary retirement plan the space of a decade the private sector participation rate was 86% so it you transition from what we currently have universal counts,
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the sink back if you are a rare honor, the monthly benefit is going to be smaller because the benefit formula based. one right and social security making the formula even more progressive. the nice thing about the way the testing is done, it's an average of your earnings, there are some proposals i will be the current system but i don't think that's the right way to go. the current income during requirement is not as accurate based on current income during requirement taxes.
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in this retiree and you look further up be productive 10%, that's where we have the problem so as not just the low end but it gives people confidence. i'm going to tell people and reduce a benefit you will save more on your own. i can guarantee you will and retire. our elderly poverty rate will be 0% we don't have that many poor people but if you are in poverty, it's one 100%.
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the idea benefits is helpful for the strength of the program it's one thing to tell people we lower the payment, i didn't burn it when people told and you are to them, i will fight changes and the reality and the projections for people retiring in the mid- 2030s. that group on average is premised something like 27% higher lifetime passes.
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benefits and sport delaying benefits leading a plane will not more generous people are living longer so it turns out it could be a big deal for many people so that is the personal-finance site but i do think working longer have to be part of the solution. we are working a little longer but retirement has increased so there are things we could do to facilitate number lines. one thing i looked at business social security benefits from the other things i could be proved?
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government employees and retirement systems. social security i get that it's range idea and cap force them to participate there's rules in place for the benefit will be on the size of pension. the reality is they are not at the benefit form in the sense of people of i can come and they low income. it would transfer to them and we have provisions in place.
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and i try to explain it and work out. >> this is something right off with legislation in recent years because money are having this conversation. make sure goals are not getting it as a result. people think there social security benefits are stripped away treated unfairly but the bill right now would repeal and
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sponsored by aei led by phil gramm which that anytime you talk about incomes and property, you have to look at the old monopoly of transfer programs of the bottom. this affects the top. as in the income distributional there is an african sleeping. we want people to be able to do something save for retirement. when giving money people who have risk of poverty in this
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