"Social Security is very large-it's the main way most Americans save for retirement. In fact, Social Security accounts for nearly half of total wealth for nine out of 10 Americans. Last year, a study led by Catherine found that Social Security has primarily benefited lower income households over the past three decades."
"Modern-day America's chasm between the ultra-rich and the rest of the country hasn't been this wide since the Gilded Age, when the wealthiest 5% held a third of all income while the bottom 60% of Americans lived below the poverty line. Today, the top 1% hold 31% of the wealth, while the bottom 50% just 2.5%."
"The trust fund that supports Social Security has been on thin ice for a while, and Trump's spate of legislative changes last year has moved its insolvency date up to fiscal year 2032, which starts in October 2031, one year earlier than expected."
America faces a fiscal crisis that threatens Social Security's solvency, with insolvency now projected for 2032 instead of 2033. Social Security serves as the primary retirement savings mechanism for most Americans, accounting for nearly half of total wealth for nine out of ten households. Research from Wharton economists demonstrates that Social Security has been instrumental in moderating wealth inequality over the past three decades, particularly benefiting lower-income households. Without this redistributive program, wealth concentration would rival Gilded Age levels, with the top 1% holding even greater shares of national wealth. Recent policy changes have accelerated the trust fund's depletion, threatening to eliminate this critical buffer against inequality.
#social-security-insolvency #wealth-inequality #fiscal-policy #income-redistribution #retirement-security
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