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Social Security Adds Billions to KY's Bottom Line

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Tuesday, October 8, 2013   

LOUISVILLE, Ky. - As the budget and debt ceiling debates continue in Washington, D.C., backers of Social Security want members of Congress to see the importance of the retirement program - and not only for retirees. Jim Kimbrough, president of AARP Kentucky, said they have delivered petitions with nearly 30,000 signatures to the state's congressional delegation. The message: Social Security is a "bedrock of economic security." Do not tie it to any debt resolution.

"For a lot of people, a lot of Kentuckians, it is the only sure, steady income that they have, and it's extremely important," Kimbrough said.

The report, "Social Security's Impact on the National Economy," details the powerful multiplier effect created as Social Security recipients spend their benefits. It says the companies that receive those dollars also spend their profits and pay their employees, who in turn, spend their wages.

The report shows that for every dollar of Social Security money spent in Kentucky, $1.76 is generated. Kimbrough said that has a big economic impact in the state, and totals more than $20 billion.

"It's spent very much locally on food products, health care, for rent and mortgage."

Social Security supported 142,000 jobs in Kentucky.

Erik Nelson, also with AARP, adds that while the future of the program should be up for discussion, that should wait until Congress can get past the budget and debt-ceiling battles.

"Let's clear the table and get this government shutdown behind us, the debt ceiling behind us, and not include Social Security as a bargaining chip in any of these, and start fresh," Nelson said. "Let Americans - let seniors and others - chime in on what the future of Social Security should be and how it should be addressed."

The AARP report says nationally, Social Security benefit payments in 2012 supported more than $370 billion in salaries, wages and compensation for workers.

The full report is available at http://www.aarp.org/.




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