Janet Yellen says Biden ‘doesn’t have a plan’ to extend Social Security’s solvency beyond 2033 — but he has ‘principles’ and wants to work with Congress. Should Americans be concerned?

The issue of Social Security’s long-term financing shortfall has been a subject of intense discussion in America.

A report from the Social Security Board of Trustees last year projected that the federal program's trust funds will be depleted in 2033. After this point, there will only be enough to cover around 80% of the scheduled benefits unless Congress takes action.

During a U.S. Senate Finance Committee hearing, Senator Bill Cassidy, M.D. (R-LA) questioned Treasury Secretary Janet Yellen regarding President Joe Biden's lack of a detailed strategy to tackle the impending insolvency of Social Security. Since the president's budget proposal includes tax hikes for the wealthy, Cassidy was wondering how much higher the rate would have to go to solve the Social Security issue as well.

Yellen's response took many by surprise.

“The president doesn’t have a plan,” she said. “He has principles. He wants to work with Congress to find a way to protect Social Security and extend its solvency beyond 2034.”

Cassidy was not content with Yellen’s response.

“If the president wishes to work with Congress, why does he continually demagogue Republicans on anything that doesn't exactly line up to what apparently suits his re-election?” he asked. “There’s going to be a 23 – 25% cut for those receiving benefits now, which will double the rate of poverty among the elderly — double the rate of poverty among the elderly — in eight years, and he doesn’t have a plan. Madam Secretary, how can he justify not having a plan when he’s been in office for three years already?”

It's worth noting that the presumptive Republican presidential nominee Donald Trump hasn't presented the public with a detailed plan for Social Security either.