The annual Social Security Trust Fund report, published June 9, 2026, presents a troubling outlook for the future. If no action is taken, the trust fund will be depleted, requiring a 22% reduction in scheduled retirement benefits beginning in 2032. In this episode of “The Two-Handed Economist,” John W. Diamond discusses the history of Social Security, previous reforms to the system, and the need for Congress to act before those reductions take effect. Looking back at the last major reform during the Reagan administration, Diamond outlines possible solutions and compares them with the measures that helped address the program’s financial challenges at that time.
Special guest Bill King joins Diamond to discuss the long-term need for reform in light of a shrinking workforce and a growing retirement-age population. They examine a demographic challenge that is reshaping the program’s finances and discuss potential policy approaches to help ensure the long-term sustainability of Social Security.
This conversation was recorded on June 18, 2026.
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“The Two-Handed Economist” delivers timely analysis of economic news from John Diamond, director of the Baker Institute Center for Tax and Budget Policy. Each week, John dives deep into the latest policy developments — mostly at the federal level, but with insights now and again into Texas and Houston finance as well.
Why a two-handed economist, you might ask? President Harry Truman famously asked for a one-handed economist, tired of hearing, “On the one hand, this,” and “On the other hand, that.” John embraces the complexity that a one-handed economist might shy away from, explaining how it all adds up for consumers, businesses, and policymakers.
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