Social Security and Inflation

We “Greedy Geezers” will not be getting an increase in our monthly Social Security benefit payments in January, because the CPI is still below what it was in 2008. Stories on the Web are talking about how unhappy recipients will be to not get an increase, especially because the CPI rose about 1 percent over the past 12 months. Of course, I didn’t hear any complaints from recipients in 2009, when their benefits remained unchanged while the CPI dropped; nor was there any complaint when benefits were “over-indexed” between 2007 and 2008. This is a classic illustration of asymmetry in perception-”what’s mine is mine, what’s yours is negotiable.” Proposals to give a special $250 increase this year to recipients are politicians’ sop to this perception bias.

Wouldn’t the country be better off if politicians explained why the current system makes sense rather than catering to people’s mis-perceptions? Or if they were honest and modified the system to allow for benefit cuts when the CPI drops? (Fat chance of that!)

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  1. Dea says:

    You know everyone complains about money being spent on the senior citizens, did you look how much the government is paying itself? how much the congressmen and house members and their friends in businesses get through state contracts? if there really isn’t any money left how about all you congressmen and representatives say, “you know don’t pay me a cent for the next 4 years. i got enough to make ends met lets help out those who don’t.” and also why don’t we not just stop at the pay, lets make them pay for their own health insurance, and their traveling and their food, etc. if the reason that they are paid is so they would be less likely to take bribes, that is a faulty idea, because no matter how much you pay them there will always be room for more money to take.

    as far as SS benefits, there is something wrong with the system if a person who worked all their lives still needs a part time job to make ends meet even with full benefits from SS.

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  2. semi homeless mba says:

    Several large counties across US are experiencing unprecedented increases in the number of unclaimed deceased – apparently because more people simply cannot afford to bury or cremate their loved ones. The phenomenon has increased costs for local governments, which have to dispose of the bodies.
    The Los Angeles County coroner’s office has seen a surge in the number of bodies that are not claimed by families for cremation or burial because of economic hardship, according to the Los Angeles Times.
    The coroner’s office in Clark County, Nev., which includes Las Vegas, saw a 27% increase in burials and cremations of unclaimed bodies this year…
    So it looks like even the dead are getting bailouts in America.

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