Recent research conducted from the National Institute on Retirement Security (NIRS) on social security revealed how important it really is and serves many purposes for our labor force.
To be specific, the research found that in 2023;
$1.38 trillion in benefits were paid to roughly 67 million households
12.2 million jobs have been generated from social security
$804.6 billion in labor income
Generated a total of $2.6 trillion in economic output and $1.6 trillion in GDP.
Generated $363 billion in federal, state, and local tax revenues.
Each $1 in Social Security benefits supports $2 in total economic activity.
It goes without saying that the impact of social security is substantial. The reason this research was conducted is fear of benefit cuts. Dan Doonan, the NIRS director elaborated on this.
“Every dollar paid out in Social Security benefits supports two dollars in total economic activity. These benefits not only provide financial security for millions of Americans, but they also sustain jobs, generate tax revenue, and keep local economies strong… As policymakers debate how to ensure the long-term solvency of Social Security, they should remember that benefit cuts wouldn't just harm retirees: they would ripple through every community in America,"
Social Security is more than just a benefit to retired people, it is a portion of the economy that stimulates and even encourages economic growth and activity. This sort of responsibility that Social Security is important to preserve, as drastic changes in funding would be detrimental to this and ultimately slow down the economy.
1 comment:
Those numbers really put into perspective how much Social Security does beyond just supporting retirees. It's incredible how one program can create such a ripple effect across jobs, income, and tax revenue. Cutting benefits wouldn't just hurt individuals; it would slow down entire communities. It's a great reminder that Social Security isn't just a safety net, but a major driver of economic stability and demand.
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