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The Social Security Administration announced today that there will be no cost-of-living increase next year for the first time since 1975, when such adjustments became automatic. Why? Inflation has been negative this year. As a result, President Obama wants Congress to award around 57 million seniors, people with disabilities, and veterans a one-time $250 check to help some of the most vulnerable Americans deal with the recession.
The check would amount to around two percent of the annual benefit for the average retiree receiving Social Security benefits and would also go to Supplemental Security Income beneficiaries, veterans, and government and railroad retirees.
The plan is expected to cost about $13 billion, and critics are bound to say it's merely a component of a second stimulus plan that the administration wants to pass without calling it that. Indeed, supporters of the idea openly talked about how the $250 payments would help not only Social Security recipients but also the economy as a whole.
When you say that fast, it sounds good. President Obama is calling on Congress to provide $250 each to about 57 million seniors, veterans and those with disabilities because they're not getting a cost-of-living increase this year. You hear that and you might say, "Aw, isn't that nice of the president, particularly if you are one of those getting the check."
Just a minute: Why aren't they getting a cost of living increase this year? Because there hasn't been an increase in the cost of living. No increase in the cost of living, not cost-of-living increase, right? We don't consider a cost of living decrease so why do we give a $250 check to everyone on Social Security or disability?
That's not logical, unless you're trying to curry favor with senior citizens since they are loyal, dedicated voters.
The president did say at one time that it was unfair that Medicare would increase in price if there was no cost of living increase. The Medicare increase from this year to next year would be from $96 to $104 a month, and for 2011, an increase from $104 to $120. That's an increase of $16 a month over two years and the president is proposing to give a one-time credit of $250. Why not simply freeze the Medicare increase instead of giving a cost-of-living increase of $250 when the cost of living has not gone up? The House already passed such a "price-freeze" measure back in September. What are the Senate and the president waiting for?
Comments
"...We don't consider a cost of living decrease so why do we give a $250 check to everyone on Social Security or disability?..."
I'm gonna tell your grandma....the way I see it, the people on social security will be the last ones to update to digital tv...this "windfall" should send a lot of them the electronic stores...that will pay salaries, they will buy something and suddenly it's in the economy stimilating...and that way, granny don't give you the sad eyes trying to get an hdtv out of you.
Gotta buy votes of those opposed to my ObamaCare dont ya know!?
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