As Congress Tackles Social Security's Problems, Here Are 4 Ways Benefit Cuts Would Hurt Local Economies
It's possible that some members of Congress are unaware of the far-reaching impact of Social Security cuts.
As Congress Tackles Social Security's Problems, Here Are 4 Ways Benefit Cuts Would Hurt Local Economies
Overview
While the "trickle-down theory" is frequently associated with President Ronald Reagan's policies, it dates back to the 1920s, when humorist Will Rogers coined the term. The trickle-down theory involves giving tax breaks and other perks to the richest Americans in the belief that they won't hoard the money, but rather, use it to build new businesses and spur economic growth.
If there's any truth to the trickle-down theory, it's illustrated by the impact those 63 million-plus Americans receiving Social Security retirement or survivors benefits have on their local economies. Here's a look at how Social Security supports local economies and what we can expect if the Social Security trust fund is depleted, leading to a 25% cut in benefits for retirees and their dependents.
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Originally published at www.fool.com.
