And the Repugs want to stick it to the retirees again. Balance their overblown-military-bonanza -and-low-taxes-for-the-rich budget on the backs of OLD FOLKS again?? Maybe the Presnet has forgotten his opening words on this topic after taking office in 2009: "No cost of living (COLA) increases for SS recipients till 2012"?? (or was it 2013, and he chickened out and gave us a raise just before the election? Natch....we VOTE). But this longtime taxpayer has NOT forgotten this betrayal.
The COLA, as you might imagine, is not really based on inflation and the actual cost of living. It's based on some arcane formula derived by the deranged (DBD) in some accounting office somewhere. I mean, just stop and think a bit. Did the cost of living go up at all in the years between 2009 and right now? Wasn't it skyrocketing? And didn't Congress get all kinds of extra pay during that period? (Refresh what's left of your memory: True, they did eschew pay raises in 2010-2012, but how about that $4,700 for just 2009?) Seniors....ever see that kind of a raise in your SS? (Mad, hysterical laughter). Do you think members of Congress ever go grocery shopping or fill their gas tanks in person? Or get their prescriptions refilled?
There was a big kerfluffle recently about "living on food stamps" as a way to diet. Here's a better one: how about living on SS for 6 months? Not only might you lose weight, you also might get kicked out of your apartment.
Please...NO MORE OF THIS TALK! Social Security was never meant to be Congress' piggy bank. Close the door on this one, and that means no more photos of Boehner and his new suntan and crisply ironed shirts. Ish.
Actually the COLA for Social Security recipients is based on real data and a real formula for determining the price change for a huge market basket of goods and services that people don't tamper with. I know because I spent my entire career working on the Consumer Price Index which is what is used to determine the Cost of Living Allowance for Social Security. We may not like the number, but it is not imaginary. It will not reflect an individual's spending pattern because it is a composite based item weights from the Consumer Expenditure Survey, another real data-driven survey, but please don't think that evil people with green eye-shades tamper with it.
ReplyDeleteI appreciate knowing there are living persons behind these decisions. I have been reading something like this [http://seniorsleague.org/issues/cola/] for the past few years that points out the CPI is based on YOUNG urban workers and their expenditures. People like me are OLD, and our spending habits are distinctly different. Anyway....welcome to XE! I looked at your blog, and it's cool!
ReplyDelete"Social Security was never meant to be Congress' piggy bank." That's certainly part of the problem, but we don't hear any mea culpa from Congresspersons. Too many in that same august group don't have any difficult giving themselves raises as you note.
ReplyDeleteI'm quite opposed to this new system that's been cooked up on which to base SS cost of living figures. I wouldn't be surprised if part of the criteria for coming up with a new systems was also to devise one that would serve to cut individual benefit raises. Now they must convince everyone their figures are reality based.
Hear hear!!
ReplyDeleteTell the truth, M.E., you never liked his looks, knew the guy cried fake tears, knew no one living in D.C. could have a year round tan. Annoyingly we are stuck with him till his constituents come to life and vote him out!
ReplyDelete