Episode Details

David Hebert discusses the fiscal debates surrounding Social Security's impending 2032 shortfall. Hebert refutes the idea that raising tax rates increases treasury revenue, noting that tax revenue historically remains constant at 17–18% of GDP because high rates prompt tax avoidance. Instead of "starving the beast" of resources, Hebert advocates for "starving the beast of responsibility" by decentralizing programs through federalism to cut administrative costs. He urges structural reforms to Social Security, highlighting that the ratio of workers supporting each retiree has plummeted from 40-to-1 down to 2-to-1. (4)