Impacts
We would like to discuss the drop in social security disability payments and their effect on the economy. There are both direct and indirect impacts on the economy. An example of a direct economic impact would be if the unemployment rate fell from 4% to 3.5%. This would cause a direct impact on the GDP of the country. An indirect impact is something you normally wouldn’t see that tends to stay under the radar. The interesting thing about what’s happening with several people on social security is that they see both direct and indirect impacts.
A Better Economy
Since 2014 there has been a drop of 330,000 less individuals on social security disability. That’s a huge drop since 2014 that stems from people coming back into the workplace. From 2002 to 2014 there was an increase in the number of people on social security disability. When the economy started to improve in 2014 that number started to drop. This is an example of individuals making a positive direct impact on the GDP. They’re out working and spending more money and in turn putting that back into the economy. It’s also a great indirect impact because those people have come off social security. Economist have estimated that $4.6 billion have gone into savings just in taxation. It has also pushed the positive number on social security out another four years to 2022.
Ashley Page, JD, MBA
Senior Vice President
Wealth Consultant
Email Ashley Page here
Fi Plan Partners is an independent investment firm in Birmingham, AL, serving clients across the nation through financial planning, wealth management and business consulting. Fi Plan Partners creates strategies in the best interest of their clients using both fee based investing and transactional investing.
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