Michael A. Peterson, CEO of the Peter G. Peterson Foundation, discusses the fiscal challenges facing the U.S. and why policymakers need to pursue solutions.
The results of the midterm elections will play a role in shaping the future of Social Security as the safety net program’s projected insolvency looms in 2032 and would require entitlement reforms to prevent automatic benefit cuts.
Social Security’s main trust funds are on a path to depletion as increased enrollment due to the aging American population and growth in benefits paid outpaces incoming payroll tax revenue. Current law requires that once the trust funds are tapped out, benefits must be automatically cut to match incoming payroll tax receipts, which is estimated to…