Posted on 06/04/2010 7:41:11 AM PDT by Daniel T. Zanoza
In January of 2010--for the first time in nearly three decades--Social Security recipients did not receive a Cost Of Living Adjustment (COLA). It is being reported the COLA freeze may remain in effect for up to three years. COLA's are calculated according to the Consumer Price Index (CPI). The CPI is a measure which estimates the average cost of goods and services purchased by households.
The U.S. Dept. of Labor calculates the CPI. Seniors and the disabled who receive Social Security benefits did not receive a COLA in 2010 because the CPI indicated there was no increase in inflation.
Now, there are those who swear by the CPI, but every American who purchases goods and services knows full well there has been an increase in the cost of living. Anyone who disagrees with this fact must not do grocery shopping or pay utility bills and they must be living in a cocoon.
The COLA freeze will save the U.S. government billions of dollars and there have been reports there will not be a COLA for two years or more. Someone must have a crystal ball at the U.S. Bureau of Labor Statistics which can predict there will be no inflation for the next two years or more. However, some economists are predicting the United States may go through a period of hyper-inflation in the near future.
To soften the political blow from the fall out regarding the COLA freeze, late last year President Barack Obama suggested a one-time payment of $250 for Social Security recipients. However, when Republicans suggested the money for the one-time payment come out of Obama's $862 billion stimulus package, this issue was taken off the table.
Why didn't Social Security recipients receive a COLA? Democrats had other ideas for use of the stimulus money, including building tunnels for migrating turtles, trains for visitors who want to get a good look at California's wine country and we must not forget the millions of dollars that were allocated for Congressional Districts that do not exist.
The strange thing is the Obama administration and the Democratic Party poured salt on an open wound with the passage of health care reform which cut Medicare by $500 billion. The message seniors are being sent is they are expendable--both in life and at the ballot box. But, one of these days, someone's going to remind the Democratic brain trust that the senior voting bloc they controlled for generations may have flown out the window with fiscal responsibility.
Perhaps the Democrats were counting on the votes of illegal immigrants (via the passage of comprehensive immigration reform) to replace the political support they had received from the elderly. However, due to the failure of the U.S. government to enforce existing immigration laws, this issue may have a huge impact in the upcoming midterm election and even more Democrats may be left out in the cold.
Therefore, I would expect those who receive Social Security to get a little financial bump before November. The Democrats aren't that stupid...or are they?
Related RFFM Article:
Social Security COLA: Congress Gets Pay Raise, Seniors & Others Did Not by Daniel T. Zanoza http://rffm.typepad.com/republicans_for_fair_medi/2010/01/social-security-cola-congress-gets-pay-raise-seniors-others-did-not.html posted Jan. 22, 2010
In the vault of the Chinese treasury.
I am glad that there was no $250 payment and I would have received one. The $250 payment was just a political bribe that would have cost billions.
There are supposedly 4 million seniors and disabled to receive a 250.00 check beginning June 15, 2010. I have one client whom received a letter last week informing him that he will be receiving a check sometime around July 2, 2010. Looks like the DemoRats will try to buy votes for November 250.00 will buy 1 months of medications for the client. another person said that will pay off the unpaid gas bill. another said well that will pay for the credit card bill. another said well, he can go on vacation. and a couple people said that will be a night out at the casino.
another broken promise
another broken promise
Dims are allowing social security to die on the vine. Hmmm seems to me that they savaged Newt Gingrinch for speaking of such a thing, I think it was about medicare, now the dims are actually doing it. The dims sometime actually tell us who they are like when hildabeast started talking about a culture of corruption. Must have been think of her autobiography.
we don’t have the money to pay the social security recipients now, but isn’t that like a politician, promise something that you can’t deliver and isn’t even yours to give away!
FYI 3.4%(.034x1040x12=424.32)
a one time payment of 250 short changes the seniors, I guess he failed math too.
they take back half of every COLA for medicare every year so the seniors only get approximately $20 increase per month.
COLA is an insidious cancer on any business or organization get rid of it.
DIM’s: I love it
Yes, I believe it has nothing to do with Obama except that his policies have failed to lift us out of the economic doldrums. We may be headed for a period of deflation.
I have followed the CPI-W closely for the last five years because I am personally affected by it. I receive both a federal and a SS pension. I understand the facts far more than you seem to do.
And if you understand how the COLA is calculated, then it should come as no surprise why there was no COLA for 2009 and more than likely none for 2010 and probably 2011.
Obama is guilty of many things, but he has no control over the COLAs. If it were up to him, there would be a COLA before the critical midterms. And it will hurt him in 2012, if we continue to have no COLA increase. The $250 COLA replacement payment is meant to mitigate the impact on voters before the midterms.
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