Wednesday, October 13, 2010
Social Security: No 2011 increase expected
Another year, another dollar. This will most likely not be true for those receiving social security payments. Both the Congressional Budget Office and the economics blog Calculated Risk have decided, after proceeding through the necessary calculations, that no cost of living adjustment will be necessary for the 2010 fiscal year. I agree with this decision, although I do not have the skills to sift through all of the calculations. Simply put, if inflation is not high enough, then there is not a justification for increasing S.S. payments. We need to be more accurate and cautious when it comes to such decisions. Social Security will not be around long, so we must preserve it for as long as we can. And like the closing sentences say, S.S. payments are not decreased when deflation occurs.
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but when there is no increase in pay, the charges for insurance benefits do go up. Incomes will go down and the cost of living will increase and increase with time.
ReplyDeleteThis decision to not increase Social Security payments follows the principles and ideas we learn ins NIBC. It makes since that Social Security is ment to maintain purchasing powering that by the information in the article recipients of Social Security have benefited from the short term jump inflation from 2 years ago. But I can deduce that that as the economy continues to recovery inflation will rise and there will be increases in Social Security in the coming years.
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