For the second year in a row there will be no COLA increase for Social Security recipients. My cost of living has gone up. In the last two years, my rent has increased 9.1%. My Medicare Advantage plan has increased 15.4%. My bus pass has increased 30%. My grocery store expense has increased 23.9%. I’ve heard rumblings that the Obama administration is cooking the books, but that’s not true. The COLA is based on the CPI. If the CPI goes down, Social Security benefits do not decrease. They stay the came until the CPI catches up and increases again. That’s what has happened. The CPI took a nosedive in late 2008 and early 2009, because home prices collapsed due to the Republican recession. It is still below where it was when Social Security Recipients received a COLA for 2009. It has stayed lower for several reasons. Housing prices remain depressed. People are buying more inferior merchandise from abroad that costs less. Fed fiscal policy is set to keep the dollar artificially low to benefit banksters. According to Bloomberg, the $US has dropped to a 15 year low against the yen.
President Obama will press Congress to send a one-time payment of $250 to senior citizens to help them get through another year without an increase in their Social Security benefits, White House officials said Friday.
The renewed call for those payments came shortly after the Social Security Administration announced that millions of retirees and disabled workers would see no cost-of-living adjustments for the second year in a row, a result of the low U.S. inflation rate.
Yet seniors are struggling through the current economic downturn, White House Press Secretary Robert Gibbs said Friday, and they can’t rely on their savings because of poor investment earnings.
The $250 Economic Recovery Payment would be akin to a similar benefit paid out by the federal government last year. That payment helped offset last year’s static Social Security rate for about 50 million recipients, according to the White House.
The idea met with support from House Speaker Nancy Pelosi, who says the House will vote in November on a measure to provide the payments to Social Security recipients. News about the Social Security rate is just the latest piece of bad economic news — not just for seniors but for Democrats trying to keep their majorities in next month’s midterm election.
But the plan faces opposition in the Senate, which defeated a similar measure last year, and among Republicans concerned about long-term funding of the Social Security system.
"It will be difficult for many seniors to deal with the lack of a COLA [cost of living adjustment] for a second year in a row, but that will pale in comparison to the actual hardships future Social Security recipients will experience if Congress continues to ignore the program’s underlying financial problems," said Rep. Dave Camp of Michigan, the ranking Republican on the House Ways and Means Committee. "We must put Social Security on a path to long-term solvency, and the sooner we do so, the better it will be for both taxpayers and beneficiaries alike."
Every year, the government automatically adjusts Social Security payments based on the nation’s inflation rate. For an increase in payments to occur, consumer prices must be higher than when the last increase was awarded, according to the Social Security Administration… [emphasis added]
Inserted from <LA Times>
The $250 would help. It will almost cover my rent increase of Republicans don’t block it. Isn’t it hypocritical that Republicans want to give the average rich person a new Mercedes, but would deny the cost of a muffler to America’s seniors?
20 Responses to “I’ve Got the No COLA Blues”
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the rethugs are amazing TC! This is our first year trying to live on a disability check once a month. If not for our savings we would be homeless today. I peeked at a conservative blog yesterday and he was slamming SS recipients calling them terrible nasty names, accusing them of stealing from the paychecks of young Americans. Where do these people get their smarts from?? They need to go find themselves an island far far from us sane people! Grrrrrrrrrrrrrrrrrrrrrr!
Thanks Sue. It’s the same with me. I have a small outside income from investments made during better times. Republicans represent the rich. They are about taking what’s ours and giving it to them.
If the repugs don’t block it. Come on.
It happens, Fly. Once in a while we shame them into something. Since this is budget related, it could pass using reconciliation rules.
Boys and girls – TC FINALLY put a DONATE button down at the bottom (where you can’t see it, but it’s under the blog roll) at my urging. He does all his own research, pays at least $5 per cartoon, pays for the bandwith on this site, etc. It’s called the Lisa button, since I threatened to come out there and hunt him down if he didn’t put it up there. Let’s see if we can kick in a few bucks to our friend TC for all his hard work and lack of a COLA adjustment. Come on, you know he’s worth it. And TC, move the fucking button to the top of the page so people can see it. I just stumbled on it today and I’ve been looking for it! 🙄
He’s a stubborn asshole, but he needs the $$$ so cough some up. I did.
See TC- I can do my own research on the cartoon issue too. I’m an auditor after all 😛
And I’m so glad you did. You may be keeping my arse out of trouble.
Dang it Lisa! I put that Lisa Button up 30 days ago and I thought it was safely hidden from you! 🙁
On the cartoons, the site used to allow them to be freely embeded. The text to email for permission must have just appeared in the last few days. I’m afraid I’ll have to discontinue that feature.
Thank you for the generous donation. 😯
Folks, I did not intend this article as an expression of need. I won’t pretend I’m not poor, but I have enough to eat. There are far too many in out country that don’t.
Done … and a H/T to Lisa for pointing out that inconspicuous Donate Button.
(There’s a wise saying in radiology, since you’re held accountable for everything on the film, of “Look to the corners.” I guess that that’s not bad advice for blogs as well.)
Thank you, Nameless.
On the bright side, if the amalgamated GOP (republicans & TeaPartiers) get elected you won’t have to worry about the COLA in SS. They will suspend Social Security…………………
Welcome RW. 🙂
That is not bright at all!! 🙁
😉
Get this; I have a cousin who works within the Federal Reserve; he used to be an FBI supervisor, and part of his job was internet security, so now he contracts with the likes of Deutsche Bank, etal. Anyway, of course he voted for herr bush both times and was in favor of the turning over of SS funds to the Wall Street “investors”. He said, and I quote, “Sure they are a bunch of thieves, but as long as they could make a buck they would do so with the SS funds just like their other investments.” We know what happened to their “other investments.” 😡
Nikolai, once upon a time he used to be right. Wall Street used to prey mostly on foreign countries to benefit their shareholders. Then the moved to the poor of this country. Finally, they are now strip mining their own small investors.
You know I’m here idling my day away and the thought occurred that if social security is ever “privatized” that might be the final straw that breaks the middle class camel’s back. Because you know those banker thieves would destroy it and it might make enough people mad where they would actually do something to change this country. Personally I would like to see bankers hanging from lamp posts all around Wall Street but that’s just me and I’m in a bad mood.
Beach, that’s a terrible idea. New York already has a terrible air quality problem, and the stench of rotting banksters might push it beyond survivability. 😈
Yeah, we should definitely take them down once they get stinky. NY smells bad enough. 😛
Amen!!
Actually, Beach Bum, I would like to see most elected GOPers hanging from lamp posts also. No COLA, but neither do we see them taking a cut in salaries or benefits, do we?
EEEWW!! Bad placement. Use a cesspoo!! 😉