Tuesday, October 12, 2010

Social Security Announces They Will Screw the Elderly, Again, in 2011

Despite the fact that over the last 12 months the Bureau of Labor Statistics says the CPI  increased 1.4 percent, the Social Security Administration has just announced that  there will be no increase in benefit levels in 2011. .

The cost-of-living adjustments, or COLAs, are automatically set each year by an inflation measure that was enacted by the U.S. Congress over thirty years ago. Based on inflation this year, the Social Security Administration has already signaled there will be no COLA for 2011. Using the same inflation index for COLA, there was no increase in 2010. There has not been a COLA increase in only two years since 1975; in 2010 and 2011.

How does SS come up with this view?

In the prior year—August 2008 through August 2009—the CPI recorded an absurd drop of 2 percent. But since the Social Security law doesn’t allow for a negative COLA, beneficiaries simply received a zero COLA for 2010. To make up for that, Social Security will continue to pay zero COLAs until the CPI catches up to its previous level.

Who wudda thunk it, a high water mark for retirees?

The only real solution here is to stop the Social Security Ponzi scheme now. End Social Security taxes for everyone today, and sell government land and buildings to payoff those who are currently due SS "benefits".

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