Philip Diehl, former U.S. mint director during the Clinton administration and president of gold and precious metals dealer U.S. Money Reserve, said he expects AI to take a bigger toll in coming years that will hit Social Security.
There’s a painful transition coming during which new jobs will be created at a slower pace and require new skill sets that the older generation doesn’t have,” he said. “These older employees who don’t; make the transition will retire earlier and take benefits, which has an immediate effect on Social Security. Then, there's to what extent AI will reduce jobs and reduce pay for jobs. There is some evidence of reduced pay for jobs more exposed to AI.
Lower wages means less money to tax for Social Security.
“None of these factors are reflected in the latest estimates for Social Security insolvency,” he said. That means insolvency could come even sooner than 2032, he said.
To prepare for that, Diehl said Congress should start working on a plan “to move funding from labor to capital – taxing wealth, assets, and income at a higher level,” he said.
Source: USA Today
