Social Security Benefits are GOOD for the Economy

November 20, 2013

From a study by Gary Koenig of the AARP Public Policy Institute and Al Myles of Mississippi State University:

Social Security’s economic impact starts when its recipients spend their benefits on goods and services.The businesses that receive these dollars use them to pay their owners and employees, purchase additional items to sell, and pay rent, taxes, and the other normal costs of doing business. Their suppliers in turn use the revenue they receive to pay their employees, suppliers, and so forth….

 Every dollar of Social Security benefits generates about $2 of economic output.

2012 Social Security benefit payments in supported:

  • About $1.4 trillion in economic output (goods and services)
  • Just over 9.2 million jobs
  • About $774 billion in value added (gross domestic product)
  • More than $370 billion in salaries, wages, and other compensation
  • Tax revenues for local, state, and federal governments exceeding $222 billion, including $78.9 billion in local and state taxes and $143.3 billion in federal taxes
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