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Archive for Monday, October 11, 2010

No increase in Social Security benefits likely for next year

October 11, 2010

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— As if voters don’t have enough to be angry about this election year, the government is expected to announce this week that more than 58 million Social Security recipients will go through another year without an increase in their monthly benefits.

It would mark only the second year without an increase since automatic adjustments for inflation were adopted in 1975. The first year was this year.

“If you’re the ruling party, this is not the sort of thing you want to have happening two weeks before an election,” said Andrew Biggs, a former deputy commissioner at the Social Security Administration and now a resident scholar at the American Enterprise Institute.

“It’s not the congressional Democrats’ fault, but that’s the way politics works,” Biggs said. “A lot of people will feel hostile about it.”

The cost-of-living adjustments, or COLAs, are automatically set each year by an inflation measure that was adopted by Congress back in the 1970s.

Based on inflation so far this year, the trustees who oversee Social Security project there will be no COLA for 2011.

The projection will be made official on Friday, when the Bureau of Labor Statistics releases inflation estimates for September.

The timing couldn’t be worse for Democrats as they approach an election in which they are in danger of losing their House majority, and possibly their Senate majority as well.

Democrats have been working hard to make Social Security an election-year issue, running political ads and holding press conferences to accuse Republicans of plotting to privatize the national retirement program.

Comments

Centerville 4 years, 2 months ago

This...on top of raiding Medicare and the new rationing. I assume there's a message in there somewhere.

geekin_topekan 4 years, 2 months ago

I am assuming that all Tea Party-ers will be dropping from the rolls of SS recipients? That should free up Billions.

KEITHMILES05 4 years, 2 months ago

Social Security recipients need to tighten their belt just like everybody else. That's life.

Flap Doodle 4 years, 2 months ago

The current regime needs to save the money paid in by people who work so they can buy the loyality of those who do not work.

Godot 4 years, 2 months ago

Oil was $49.12 a barrell on January 19, 2009; it is trading over $80 a barrell today; corn is up, wheat is up, oats are up, beans are up; beef is up; chicken is up; eggs are up, medical care is up, taxes are up, even stamps are higher

No inflation? Only if you don't count the basics of life.

Jimo 4 years, 2 months ago

Well, the price of housing has fallen dramatically in most parts of the country. Perhaps you'd heard something about that? For most people, putting a roof over your heard is - BY FAR - the biggest expense they have. Add on significant drops in clothing, electronics, furnishings - and quite a few accepting wage cuts - and you get no overall inflation.

It's unclear what obsession you have about January 19, 2009. Personally, I prefer to remember the $100+ oil and $5 gasoline of the Bush year years and be thankful that era is over.

Besides, taxes are down under Obama, not up. Turn off the Fox.

Godot 4 years, 2 months ago

"U.S. per-capita beef supplies next year will be the lowest since 1952 and pork the smallest since 1976, industry researcher CattleFax said. Hog futures will rise 14 percent by July and cattle may gain 3.6 percent by April, according to a Bloomberg survey of analysts. Wendy’s/Arby’s Group Inc., the maker of the 1,360-calorie Baconator Triple burger, and CKE Restaurants Inc., owner of the Hardee’s chain, have warned investors they are contending with higher commodity costs."

http://www.bloomberg.com/news/2010-10-10/meat-market-corn-crunch-means-most-expensive-u-s-beef-in-quarter-century.html

It is completely understandable why the smartest administration evah missed this. It wasn't on the Huffington Post or MTV.

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