Social Security is a major factor in New Hampshire’s economy and the lives of one in five individuals. Almost 300,000 Granite Staters received $4.5 billion in benefits in 2015, generating a total of $7.7 billion in economic activity in New Hampshire. Why then has this vital program, which faces a looming shortfall that demands urgent action, received such little attention from the candidates seeking the presidency of the United States?
The problem is well documented. Unless the next president takes a stand and initiates decisive action, the Social Security Trust Fund will be depleted by 2034. At that point, people who receive Social Security will face an almost 25 percent benefit cut – that’s a cut of $4,000 to $10,000 for the typical Granite Stater.
This outcome will have significant negative ripple effects. The income derived by Social Security benefits kicks off a cascade of events felt throughout the entire economy. That money is spent on goods and services, which supports businesses and creates jobs. But when an older American takes a cut in their already limited budget, he or she will make rational economic choices such as deciding against buying a new car or choosing not to eat out. These choices are felt throughout the economy.
According to a new analysis by AARP, Social Security fuels $1.6 trillion in economic activity in the United States. The cost of doing nothing is estimated to be upward of $400 billion in lost economic output. Here in New Hampshire we’d see a $2 billion annual loss of economic output, which in turn could cost us around 11,100 jobs.
I am especially concerned about what those cuts would do to smaller New Hampshire communities where Social Security represents a disproportionately large portion of the entire community’s economic activity. I have had the honor of serving Senate District 2 for six years. The district is large and consists of 27 cities and towns, most of which are very small. Consider the town of Bridgewater. Almost 20 percent of its residents receive Social Security retirement benefits today, and nearly 50 percent of residents are nearing retirement age. Or consider tiny Ellsworth with its population of 83, 30 percent of whom receive Social Security retirement benefits. What happens to these places if a major source of their economic activity is slashed by 25 percent? I hope we never find out.
AARP has urged the candidates for president to take a stand and explain their plans for the long-term solvency of Social Security. The campaign had considerable success in the primary, encouraging candidates from both parties to release plans to fix the program. Unfortunately during the general election, reasoned discourse on issues that ought to transcend party lines has given way to increasingly nasty personal attacks.
Social Security affects the life of every Granite Stater. We mustn’t allow the politicians to dodge the issue any longer. The closing weeks of the general election should include an extended and detailed dialogue about the future of this vital program. The media play an important role in this exercise. The most important role though is played by we the people. We must hold the candidates accountable.
(Sen. Jeanie Forrester, a Meredith Republican, represents Senate District 2.)