[kabar]

Obama had nothing to do with SS COLA increases. COLAs are based on an established formula and the CPI-W, i.e.,. COLA Estimates

The Social Security Act specifies a formula for determining each COLA. In general, a COLA is equal to the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of one year to the third quarter of the next. If there is no increase, there is no COLA.

I do think it is great that most people will still blame it on Obama.

[MNJohnnie]

Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W)

And who determines this number? How is it decided?

[businessprofessor]

You are correct. Social Security uses a wage index to increase benefits. For years, this index has grown faster than the rate of inflation. Now it is reversed. Wage indexing is unsustainable except in one scenario. If we suffer a serious economic decline, wages will fall not rise. However, Congress has threatened to intervene and provide a COLA even though the formula indicates no increase.

Even without the excesses of the rats on spending, regulations, and industry control, entitlement programs threaten to undermine the economy. We have seen the problem for many years. However, rat demagoguery, senior voting blocks, and political desire to spend excess payroll taxes have made changes impossible. Bush had a good idea to introduce some level of savings in personal accounts. Reagan should have proposed this idea in 80s. I see no solution except economic collapse to force changes. However, the baby boom generation will be robbed of the large amount of contributions because excess payroll taxes have already been spent.

[csmusaret]

Wouldn’t it be nice to wait until the 3rd qtr is over? Not only did they announce this a month or two ago, they also said there would be no increase next year either.