How Hurricane Harvey Will Give America’s Seniors a Bigger Raise in 2018
Millions of Americans will likely get a slighter larger bump in their Social Security checks next year because Hurricane Harvey roared across the Gulf Coast this summer.Gasoline prices jumped as the storm hit Texas and Louisiana in late August, disrupting fuel shipments and shutting down refineries. The price jump may prove temporary, but it means U.S. inflation measures will be higher in August and September,because it is how the government will determine the Social Security cost-of -living adjustment for 2018. Cost-of -living adjustment is annual cost of living adjustment for social security benefits, based on a formula intended to keep pace with raising consumer prices. Max Gulker, senior research fellow at the nonprofit American Institute for Economic Research in Great Barrington, Mass. He sayed, “It’ll be a little bigger,and for the average Social Security recipient, it would add, like, $2.50 to the monthly check.”Social Security trustees this summer projected a 2.2% increase in benefits for the coming year. If the actual number comes in around or a bit above that level, it would be the largest benefits increase in six years for Americans who receive Social Security, Supplemental Security Income or both—66.6 million people as of July. The average monthly Social Security benefit was $1,256.94. The mean reason is higher gasoline prices will boost the inflation index used to calculate Social Security cost-of-living adjustments.
https://blogs.wsj.com/economics/2017/09/22/how-hurricane-harvey-will-give-americas-seniors-a-bigger-raise-in-2018/#livefyre-toggle-BL-REB-37751
It will be interesting to see what happends as the COLA is based off of the CPI-W so it may be the case that other goods in the basket may still fall in price to counterweigh the rise in gas prices caused by Hurricaane Harvey.
ReplyDeleteOne of the lesser thought of impacts of natural disasters. The gas prices were popular in current event news, but the COLA aspect is interesting to point out. The article is a good find. I'm curious as to other less popular economic factors like unemployment, local taxes, etc.
ReplyDeleteThis is a very interesting article. I would have never thought that a natural disaster of this magnitude could affect some people in a positive way. The raise in gasoline prices is no shock, but having a positive impact to seniors receiving the social security act is very shocking to me.
ReplyDeleteBefore reading this article, I had no idea of the impact a natural disaster had on something like Social Security benefits. It shows that these natural disasters impact many different things. It will be interesting to see some of the other effects from Harvey. At least seniors will be able to collect a higher percentage on their Social Security checks.
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