Part 5/13:
Another significant factor influencing consumer expenditure is the growth of Social Security benefits, which has been affected by ongoing inflation. As the elderly population increases, so does the reliance on Social Security, which now accounts for a substantial portion of consumer spending.
In 2022, Social Security recipients received an additional 5.9% increase in benefits—the largest in four decades—and this rose to 8.7% in 2023. These increases are driven by the rising cost of living, itself fueled by inflation caused by prior money printing activities. Essentially, inflation leads to higher prices, prompting the government to increase Social Security payments to beneficiaries, who then have more money to spend.