Janet Yellen Flummoxed On Social Security Issue At Senate Hearing

Janet Yellen humiliated herself during her testimony in front of the Senate on Thursday.

It's quite common knowledge in 2023 that the federal government's longstanding social security welfare program is in trouble, and in fact is estimated to become insolvent in less than 10 years.

Secretary of Treasury Janet Yellen appeared in front of the Senate Finance Committee on Thursday, and appeared absolutely flummoxed when questioned about the social security insolvency problem by Senator Bill Cassidy (R-LA).

Yellen's lack of knowledge and preparedness on such an important issue was actually pretty funny, and made the interaction quite entertaining; but nonetheless, the social security problem is quite serious, as it will potentially allow millions of recipients to slide into poverty after it becomes insolvent.

"Um, Madame Secretary, the President keeps saying he does not wish to have cuts in uh, in social. Is he aware that when the program goes broke in 9 years, that there'll be a 24% benefit cut for those who're current recipients? Is he aware of that?" asks Sen. Cassidy to the Treasury Secretary.

"Well, it's clear that social security..." says Janet Yellen, attempting to dodge answering the simple yes or no question.

"But is he... I apologize for the interruption but I have limited time. Is the President aware, that when social goes broke in 9 years, under current law, there's a 24% cut in benefits for people who are currently receiving?" asks Sen. Cassidy again.

"If we don't do anything about it, I think that's about right," responds Janet Yellen, attempting to dodge answering the question again. "But... the President will want... wants to strengthen social security..." During her testimony, Sec. Yellen never actually said whether or not President Biden knows that current law mandates a 24% cut in social security benefits if the program were to ever go insolvent.

"In the $4.5 trillion dollars in taxes the President has proposed, are any of those taxes going to shore up social security? I actually know that answer. The answer is of the $4.5 trillion in taxes he has proposed, not a dime is going to shore up social security," says Sen. Cassidy, answering his own question before Yellen is able to respond. Yellen doesn't attempt to refute his statement on Biden's tax proposal.

"He cares very deeply [about social security beneficiaries]," says Janet Yellen, after some back and forth. "He stands ready to work with Congress..."

"That's a lie," Sen. Cassidy snaps back at Yellen. "Because on a bipartisan group of Senators has repeatedly requested to meet with him about social, so that somebody who is a current beneficiary will not see her benefits cut by 24%, we have not heard anything on our request. And we've made multiple requests to meet with the President. Now, I know you can't comment on that - I realize that - but that is a fact. And if you've been told to say he stands ready to meet, I will tell you there's absolutely no evidence because we have not gotten our meeting."

At this point, after taking quite a metaphorical beatdown from Senator Cassidy, Sec. Janet Yellen had quite an embarrassed, confused look on her face, and never actually refuted anything he said during the conversation.

At this point, their discussion breaks down into a brief conversation about whether or not servicing the current debt, along with the ever-growing budget deficit, and fixing the social security shortfall is even possible by only raising taxes on the top 2% of income earners. Of course, anyone who's paying attention knows this is completely impossible even where we stand right now, much less what the debt and deficit will look like 10 years from now.

"Now if-if-if we doubled our debt-to-GDP ratio, then - just theoretically, if you will on a side of our conversation, if we doubled our debt-to-GDP ratio, what effect would that have on the economy?" asks Sen. Cassidy.

"So... um... right now, in the President's budget proposal..." stutters Sec. Yellen, attempting to respond.

"Now, what I asked you is just the theoretical, independently of the budget proposal," interrupts Sen. Cassidy, at this point visibly agitated.

"I don't see why we would need to double the GDP ratio..." says Janet Yellen, with the stupidest, most disingenuous response ever given in a Senate hearing. Either she was playing stupid, being incredibly disingenuous, or the Secretary of the Treasury legitimately didn't know that if we continue to spend money that we don't have, the way we are now, that eventually we will in fact double the debt-to-GDP ratio.

"But if we did - you're an economist - if we did, what would be the effect upon the economy?" repeats Sen. Cassidy, still agitated.

"Well, we tend to raise net interest costs..." Janet Yellen began to respond, in attempt to dodge the very simple, straightforward question.

"Would it be a negative effect on the economy? Of course it would be," says Sen. Cassidy.

"Of course. Yes," says Janet Yellen, finally responding to the most elementary question Cassidy asked during the entire hearing.

Sec. Janet Yellen took such a verbal beatdown during the hearing that it's hard to not laugh at her. Seeing the U.S. Secretary of the Treasury so flummoxed by American fiscal policy is both entertaining and sad at the same time. The clip of the entire interaction is available on Senator Bill Cassidy's YouTube channel, but as usual, we've taken the liberty of iFraming the clip below for your enjoyment.