MI report photo

A new AARP report,

Social Security’s Impact on the National Economy, shows how

critical Social Security is to Vermont’s economy and our nation’s economic prosperity.

While it is well-known that Social Security is an important source of income for millions

of Americans, this new report paints a clear picture of just how vital it is in supporting

Vermont’s economy, jobs, and workers’ incomes.

Every dollar of Social Security benefits paid impacts the economy in two ways:

people who receive Social Security spend their benefits, and

the companies, and their employees, that receive this spending in turn spend

their wages and profits.

 The combination of these two creates what is called the multiplier effect – when one

 person’s spending becomes a second person’s income, then the second person’s

 income is spent and becomes a third person’s income, and so on.

 The report details the powerful multiplier effect of Social Security: Every dollar of

Social Security received in Vermont generates $1.77 of total output for the state

 economy – this means that the economy, businesses, and workers benefit from every

 Social Security dollar that is paid out.

 

Findings

Taken together, spending by Social Security beneficiaries coupled with the added

spending by businesses and workers on goods and services generates $3 billion in

economic output for Vermont.

The report also reveals Social Security’s role in supporting Vermont’s workforce. The

$1.8 billion paid in benefits helped Vermont workers find or keep 21,000 jobs.

And Vermont’s workers receive $782 million in salary, wages and other compensation

thanks to the ripple effects of Social Security in state economies. These additional

earnings and business income, in turn, generate $166.1 million in local and state tax

revenue for Vermont.

 

Social Security’s Impact on Vermont’s Economy in 2012

 

Social Security Benefits Paid to Recipients — $1,831,000,000

Economic Output – Value of Goods and Services — $2,983,000,000

Jobs — 21,000

 

Employee Compensation — $781,979,000

Local and State Tax Revenues — $166,144,000

 

Social Security’s Impact on the National Economy

tells us that any adjustments

Washington makes to address Social Security’s long-term challenges will have a

profound effect on individuals, businesses and our economy as whole. That’s why

AARP is calling for a national conversation about the future of Social Security – so

those who paid into the system can have a voice in the debate about financial security

for all Americans. AARP is fighting to protect Social Security for seniors and

strengthen the program so future generations get the benefits they’ve earned.

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