Answered Conundrum Next Conundrum

shewolfsil... shewolfsi...

Social Security announced that there will be no cost of living increase. What are your thoughts on this?

It is the first year without a cost of living increase since 1975.

http://www.msnbc.msn.com/id/33324352/ns/business-personal_finance/
Interesting Question? Yes (0) No (0)
RSS

Best Answer Chosen by Asker

vicgoodwin...
vicgoodwin...
Marked as Best! October 15, 2009 05:26 PM
It is a definite sign of the times. My work did not offer them last year and make no promises to offer them again in January, when it is usually the time we get them.

So I think the government is following suit with a trend that is already in place.
I have no idea what Social security pays, but it looks like they will be struggling right along with us. Sad when I hear on the news that the elderly can not even pay for their medicines due to the high cost.

This could even be a way of convincing people that we need so much reform on health care, Social Security and government wasteful spending.

Another train of thought is that these cutbacks and freezes are an outward sign of the problems with the country being at war. We have been very fortunate not to be given limits on what we can buy to save for the war effort. This could be the first steps in that direction.
Asker's Rating:
Helpful Answer? (0)   (0)
Permalink | Report
Reply

Other Answers (4)
Sort By

bbrookin
bbrookin
October 15, 2009 05:23 PM
On the negatives side, Social Security is not exactly a plush standard of living, so the lack of a cost of living adjustment (COLA) is a hardship for those reliant on it.

On the positive side, Social Security increases are tied to the Consumer Price Index (CPI). If there is no increase in the CPI, Social Security gets no COLA. Therefore, there should be little affect to the actual cost of living for people reliant on Social Security. If the CPI decreases - which it has - there is no decrease on the amount of Social Security awarded.

It should be a wash, in theory.
Source(s):
http://www.ssa.gov/OACT/COLA/latestCOLA.html
Helpful Answer? (0)   (0)
Permalink | Report
Reply
omicron
omicron
October 15, 2009 05:36 PM
They're getting people used to a lower standard of living, just like how they don't let minimum wage keep up with the cost of living.

That was all inevitable, and forecast decades ago be economists warning of the consequences of letting Republicans outsource everything to third world countries.
Helpful Answer? (0)   (0)
Permalink | Report
Reply
jkepler
jkepler
October 15, 2009 06:44 PM
I too think it's a sign of the times. I doubt that a high percentage of workers are getting raises, so it makes sense. While some may say this is going to lower the standard of living, I think world development has kept the standard of living fairly high. For instance, look at what Walmart has done. Prices for basic needs items are lower than I ever thought possible.
Helpful Answer? (0)   (0)
Permalink | Report
Reply
beastmanh
beastmanh
October 16, 2009 05:49 AM
Cost of living increases were originally meant for keeping up with inflation. This year there has been absolutely no inflation. Makes perfect sense.
Helpful Answer? (0)   (0)
Permalink | Report
Reply

Answer this Question


View All Money Questions

Ask a Conundrum


140 characters left

Categories

Large Glass of Conundrum Wine

Welcome to ConundrumLand

Please enter your zip code.