Friedberg warns Social Security projected to run out of money within five to ten years.
“A bunch of programs are gonna run out of money, including social security, which is projected to run out of money sometime between, call it five and ten years from now.”
Friedberg calculates refinancing half of U.S. debt at higher rates adds $300 billion in annual interest payments.
“And when that happens, you know, 2% increase in interest on $15,000,000,000,000 that's another $300,000,000,000 of interest payments a year.”
Friedberg argues politicians get elected by promising more benefits rather than cutting spending for fiscal sustainability.
“That's how people get elected in a democracy. They go to the voters, they say, here's what I'm going to give you.”