Corrente

If you have "no place to go," come here!

Oh, goodie, the vampire COLA change for SocSec is baaaaaaack--

It's "in the mix" for trading for the debt ceiling.

http://fdlaction.firedoglake.com/2011/06....

This is something Dems in Congress fought fiercely to prevent being imposed on SocSec recipients, back in the Bush days, probably back in St. Ronnie's time in the WH as well.

And DEMS WON. People won.

But that was back when they gave a damn about their constituents and their votes and their welfare. Back before banksters and Wall Street and Big Bidness had bought the Democratic leadership and most of its DC pols.

And, if you have a cat, you have probably been seeing the price of cat food going up and up and up. Some 5.5 oz cans now run .89 to over a dollar, if not on sale (reminds me, I have to get some on sale food before the prices change at midnight...). No decent cat food for you greedy geezers!

Comments

Submitted by jawbone on

for computing increased to SocSec payments.

http://ourfuture.org/blog-entry/20110626...

Just another way for the rich to claw back those unwarranted riches from the...poor and elderly.

Via Susie at Suburban Guerrilla.

Also see David Dayen's post --

http://news.firedoglake.com/2011/07/01/t...

Let’s look at reductions in the growth of Social Security benefits, for example. The Congressional Budget Office estimates a reduction in benefits from the baseline by $108 billion over 10 years. According to Social Security’s chief actuary, beneficiaries who retire at age 65 and receive the average benefit would get roughly $500 less in their annual benefit at age 75, and $1,000 less at age 85. The benefit cut compounds over time, as the COLA adjustment reduces every year. As this would take effect immediately, it also represents a benefit cut for current retirees.

Using the term “chained CPI” makes this sound like some obscure change, but you can demystify it pretty easily. Every year, Social Security and other plans have a cost of living adjustment that alters their benefits based on prices. The current way that’s calculated, known as the CPI-W (the Consumer Price Index for wage earners) actually doesn’t capture the true cost of living for Social Security beneficiaries, argued a series of experts on a conference call put on by Social Security Works. In particular, it doesn’t take into account the large increases in the cost of health care, which fall particularly on the elderly and people on disability, the core beneficiaries of Social Security.

So you have a few options in that case. You could use the CPI-E, which does a better job of capturing real costs, or you could create a real Consumer Price Index specifically targeted to people who collect Social Security, weighting their average expenses accordingly, and raise benefits based on that. Or, you can use this chained CPI, which does an even worse job than the current COLA calculator of accounting for these costs, and apply it to Social Security, mainly to save money. As Josh Bivens of the Economic Policy Institute said on the call, “There’s this impression put out that this is just a technocratic fix that would impact senior citizens very much. I disagree on both counts.” Bivens and EPI put out a longer paper explaining their opposition to chained CPI.