World News Korner

New study shows that Social Security pumps $2 into the economy for every $1 paid out in benefits.

Courtesy of AARP:

A new report by the AARP Public Policy Institute, "Social Security's Impact on the National Economy," found that Social Security adds more than $1 trillion to the U.S. economy each year. People who receive Social Security benefits are not saving that money for a rainy day. They're spending it on goods and services — pumping it back into the economy. We have to remember that the typical older American has an income of about $22,000 a year, and Social Security accounts for about half of a typical older family's income.

Businesses use the income to purchase more goods and services, to realize profits and to hire more employees. Those employees, in turn, spend their wages on more goods and services, which creates more spending and income for more people. This creates a powerful multiplier effect that benefits the economy, businesses and workers. In fact, our report found that every dollar in Social Security benefits paid out generates about $2 of total output for the U.S. economy.

In 2012, spending by Social Security beneficiaries, combined with the added spending by businesses, generated roughly $1.5 trillion in total economic output.

This spending in turn supported more than 9 million jobs in the national economy. About 4 million of these jobs were created in just 10 industries. The largest impact was seen in the food services, real estate, health care and retail industries.

Thanks to the benefits provided by Social Security, nearly 21.4 million Americans avoided poverty: 1.1 million children, 5.8 million adults under 65, and 14.5 million adults 65-plus.

Of course despite this the Republicans party has been attempting to undermine Social Security since its very inception. And just like Medicare, and now the Affordable Care Act, these are programs that ultimately benefit not just the individual but also the country at large.

I look forward to the day when a report comes out detailing the incredibly positive benefits that Obamacare has had on the nation. Because eventually you KNOW it's coming.

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