1 year ago

Finance & Crypto social security tax united states government

Porkopolis Economics: Episode 147

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Porkopolis Economics covers macroeconomics, money, and sports from the creator of the Crypto Voices podcast, Matthew Mezinskis.

In this episode, Matthew discusses the history and financial details of the U.S. Social Security program, a government welfare program that provides retirement and disability benefits. He presents data from 1937 to the present, showing how payroll tax contributions have grown from $1 billion to over $1.2 trillion while benefit payouts have increased from nearly zero to $1.38 trillion. Matthew aims to objectively examine the financial status of Social Security, rather than engaging in "bombast" or "click-baity content," in order to provide a factual understanding of this important government program. The Social Security Administration paid out $1. 38 trillion in benefits last year, a significant portion of the government's social welfare program.

In the early days, the system saw more money coming in from payroll taxes than being paid out to retirees. However, this surplus has shifted over time, with payments now exceeding tax revenue. While the program faces financial challenges, it remains a crucial safety net for millions of Americans in their retirement years.

Figures pulled from 2024 Social Security Administration Supplement: https://www.ssa.gov/policy/docs/statcomps/supplement/2024/index.html

Table 4.A1: Old-Age and Survivors Insurance Trust Fund: Receipts, expenditures, and assets, 1937–2023 (in millions of dollars)

Table 4.A2: Disability Insurance Trust Fund: Receipts, expenditures, and assets, 1957–2023 (in millions of dollars)

00:00:00 - The Sacred Cow of Social Security
00:01:40 - Social Security Finances Explained
00:03:44 - The Evolution of Social Security: From Retirement to Disability
00:04:39 - The Brass Tacks of Social Security: Benefits and Contributions
00:06:16 - The Early Days of Social Security: Surpluses and Payouts
00:07:57 - Social Security Surplus Deficit Breakdown
00:10:47 - Net Payouts and Surpluses in Social Security
00:12:13 - Social Security Surplus and Deficit Trends
00:13:12 - Social Security Deficits and Surpluses Over Time
00:15:19 - Social Security Deficits and the Trust Fund