Scott Galloway, a professor at New York University and a podcaster, has raised concerns about the current state of Social Security and its impact on different generations. He argues that the system has become a poorly designed transfer program that benefits the wealthiest generation in history at the expense of younger people who are struggling financially. Galloway points out that between 10% and 30% of current Social Security recipients may not need to collect benefits.
He says, “We are talking about the richest generation in history. Every year, $1.2 trillion is transferred from young people, who are not doing as well as previous generations, to them.”
He believes that Social Security should primarily serve as a safety net for elderly individuals who can no longer work and rely on the program to cover their basic expenses. Galloway proposes implementing a means-testing model, where eligibility for benefits depends on the applicant’s financial situation rather than just their age.
Under his proposed criteria, citizens with assets exceeding $1 million or passive income of more than $100,000 per year would be excluded from receiving Social Security benefits. Galloway, who has an annual income of $16 million, admits that he himself would not need such payments.
Reforming Social Security benefits
Another issue Galloway highlights is the cap on Social Security contributions. Currently, a worker earning $160,000 a year pays about $9,000 in taxes to the program, the same amount someone earning $10 million would pay. He argues that this is a fundamental flaw in the system’s design.
“It’s a program that should keep seniors out of poverty. It should not be a wealth transfer from young to old, who, as a group, are already the wealthiest,” Galloway asserts. He calls for profound changes to the Social Security system, emphasizing the need to drastically reduce costs.
One-third of seniors should not be collecting Social Security. It has been a politically dangerous issue until now, but this must end,” he concludes. Galloway’s strong stance on Social Security reform has sparked discussions about the program’s sustainability and fairness, highlighting the need for significant changes to ensure it serves those who genuinely need it in the years to come.