How AI Could Cause Social Security to Run Out of Money Sooner Than Expected

https://www.barrons.com/articles/social-security-benefits-fund-ai-584a1203?st=TNdeap

13 Comments

  1. nosotros_road_sodium on

    Gift link. Excerpt:

    > One possible scenario is that more jobs are lost than created, hurting the program’s long-term financial health. An estimated 2.5% of U.S. employment is at risk if AI expands across the economy and cuts employment in proportion to productivity gains, according to Goldman Sachs.

    > […]

    > Social Security has been dipping into its trust fund’s reserves to make recipients whole, and this steady erosion will cause the retirement fund to be depleted in 2033, according to the Trustees’ projections. Barring a Congressional fix, beneficiaries will then face an automatic benefit cut of 23%–the portion that the trust fund had been making up.

    > How might AI alter this timeline? If the technology causes widespread job losses, reducing payroll tax revenue, the reserves could run out sooner. Conversely, if AI boosts productivity and wages while the workforce continues to grow, that could push the depletion date out further.

  2. I haven’t heard much positive from the AI investors other than it makes money. All I hear is massive data centers using the power equivalent of a small city to just make plagiarized essays that aren’t even accurate or fake tik tok videos. AIs publicist is so bad

  3. nopointinnames on

    If AI was so dang amazing can’t it create new jobs for itself instead of taking someone else’s with them being told “new types of jobs will be created”

  4. GarnerGerald11141 on

    OMG! A.I. has nothing to do with an established entitlement. How can we steal money from Americans?…

  5. LinkedInParkPremium on

    We don’t need AI for poor decision making and rampant fraud. That is what is happening right now.

  6. Maybe we need some smart Senators to withhold any more money from Big Tech AI

    unless and until “application of AI IN THE AMERICAN ECONOMY CAN BE PROVEN TO have REVENUE-POSITIVE AND COST-NEGATIVE Economic impact for each state it is active and available in”

    Maybe there’s better legal phrases, but let the intent of such a body of law to be unmistakable.

    Any improvements?

  7. Minimum_Passing_Slut on

    Very state the obvious article. Mass unemployment = less taxes for social security thus it runs out of funding quicker.