No Social Security COLA Expected for 2011

United States
October 10, 2010 9:41am CST
As if voters don't have enough to be angry about this election year, the government is expected to announce this week that more than 58 million Social Security recipients will go through another year without an increase in their monthly benefits. It would mark only the second year without an increase since automatic adjustments for inflation were adopted in 1975. The first year was this year. "If you're the ruling party, this is not the sort of thing you want to have happening two weeks before an election," said Andrew Biggs, a former deputy commissioner at the Social Security Administration and now a resident scholar at the American Enterprise Institute. "It's not the congressional Democrats' fault, but that's the way politics works," Biggs said. "A lot of people will feel hostile about it." The cost-of-living adjustments, or COLAs, are automatically set each year by an inflation measure that was adopted by Congress back in the 1970s. Based on inflation so far this year, the trustees who oversee Social Security project there will be no COLA for 2011. The projection will be made official on Friday, when the Bureau of Labor Statistics releases inflation estimates for September. The timing couldn't be worse for Democrats as they approach an election in which they are in danger of losing their House majority, and possibly their Senate majority as well. This past Friday, the same bureau delivered another painful blow to Democrats: The U.S. lost 95,000 jobs in September and unemployment remained stubbornly stuck at 9.6 percent. [b]I am one of the people who feel very hostile! This is the 2nd year of Obama's presidency when there will be no COLA for Social Security. For the past 40 years we have always had enough money in the government coffers to support the Social Security COLA until Obama started spending our money like a drunken sailor. How are the Elderly and Disabled supposed to be able to afford to survive especially with Obamacare also costing us more in medical expenses. Do you feel hostile? [/b]
5 people like this
13 responses
@Catana (735)
• United States
10 Oct 10
I'm not exactly hostile, but the cost of food and just about everything else hasn't stopped going up, so I'm going to have a lot less spending leeway next year. I didn't really feel it this year because the last increase was high enough to equal two regular years. My SS payments are high enough that I'm not going to suffer, but I know that's not true for a lot of people. I don't pay much attention to politics any more because it's mostly the same old same old, but it will be interesting to see if this affects the next election.
2 people like this
@spalladino (17891)
• United States
10 Oct 10
I'm not happy about this by any stretch of the imagination but why are you blaming Obama spending, when the article you quoted says the COLA is automatically set by an inflation measure adopted by Congress back in the 70's?
1 person likes this
• United States
10 Oct 10
Simply because Obama has helped cause/increase the inflation by his out of control spending.
1 person likes this
@spalladino (17891)
• United States
10 Oct 10
The COLA is not set based on standard inflation measures...it's set based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The CPI is calculated by observing price changes among a wide array of products in urban areas and weighing these price changes by the share of income consumers spend purchasing them. The cost of products have increased...income has not...so the consumer is paying a larger share of his/her income purchasing them. There are many reasons why prices have increased and I do not see a connection between that and government spending.
@bobmnu (8157)
• United States
10 Oct 10
One of the problems with the COL is it counts the cost of housing and buying a new car, something you do not do every day and most seniors live in a house that is paid for and drive a car that is paid for. Their expenses for food, medical care and fuel have increased. This is just another example of the politicians figuring that one size fits all and they know what is best for you.
• United States
10 Oct 10
Isn't this what Republicans want? If the COLA doesn't go up, then why should we increase their income? Doing so would probably violate the mandate that was given to Social Security. I don't know why you are so upset with Obama, it was Bush who stole the Social Security surplus to give it to billionaires. It was also Bush that created the economy that we are in today. The other thing that you failed to say is that 56,000 of those job loses were government jobs, which is exactly what Republicans want. So do Republicans want smaller government, or not? But, I guess it makes logical sense to blame the paramedic, for the car crash.
• United States
10 Oct 10
I never voted for Bush. I though the the new president was supposed to correct all the problems Bush caused. Instead Obama has only made things worse!! I was a staunch Democrat until Obama showed up with his shadowy, hidden background, deep ties to his racist mentor Jeremiah Wright and his Islamic upbringing. When the Democratic party picked Obama over Hillary Clinton (a true American) to be their Presidential candidate then I ceased to be a Democrat. BTW I am on Medicare and I have already been advised that my Health Insurance Policy which I have for 2010 will no longer be offered for 2011. So do not speak for me when you say Obamacare will not affect me (a Medicare recipient) because it damn sure does affect my Healthcare Costs under Obamacare. This Obamacare "change" will cost me an extra $120.00 per month but no Soc Sec COLA to help with these costs.
1 person likes this
• United States
10 Oct 10
White, I have not seen any calculation as to the increase in Medicare from any department. I can tell you that the COLA is NOT personally approved by Obama. I am sure that the billions that Bush sent to the rich could help pay for your COLA increase if it was legal. It took three presidents and 6 years to get through the Reagan Recession, and that wasn't even close to the mess that Bush created. It will take a lot longer than 2 years to fix all of the problems that Bush created.
1 person likes this
• United States
10 Oct 10
BTW, I would love to see the number of people on Social Security, and Medicare or Medicaid. I am sure that they very similar. Thus, Obamacare won't effect them one bit seeing how this doesn't effect either program.
@epicure35 (2814)
• United States
11 Oct 10
I don't know - is it a "coincidence" that the first and only two years of no COLA coincide directly with the ascendency of the usurper to the WH and the grave misdeeds he continues to perform? I will be one of the ones directly affected by this and. as you say, it IS quite difficult. I am outraged at the total picture, not just the part I play. Who are the "trustees" who oversee Social Security and can we "trust" them with the money we have paid in, given the government's continual raiding and misappropriation of SS funds? We know we cannot trust the current totally corrupt and illegal regime to do anything right by this country.
@spalladino (17891)
• United States
12 Oct 10
Since you...as well as I...are two of those this will impact, why don't you become informed about how the COLA is determined and who is responsible...for a change? You ask is it a "coincidence"...why don't you take the TIME to learn about it? The RECESSION and mandates by Congress that came long before Obama took office are to blame, epicure. Learn the FACTS epicure instead of laying blame where it does not belong.
@epicure35 (2814)
• United States
12 Oct 10
Actually, spalladino, I was just at an appointment trying to find out the exact agency or group which oversees Social Security. So, funny you should mention it "coincidentally". I was not able to get the answer, just that it was a "federal agency". I did also ask for specific details as to how COLAS are determined, but no specifics were offered. The "fact" is that SS has been mismanaged since even before my time and my experience with this government agency at my local office has been dismal at best. No details right now. It may be true O is not responsible for all the ills of the world, but I rather enjoy "blaming" him since he still blames Bush for his own ineptitude, as well as blaming everything and everybody, eg. Republicans, Chamber of Commerce, anyone who dissents from his obviously and deliberately destructive policies, and, of course, anyone and everyone who just wants to know who this "transparent" individual of many aliases and social security numbers is. Scary.
@epicure35 (2814)
• United States
12 Oct 10
spalladino, thanks for the snopes link and information. Although they are a liberally biased site, they were clear to say in the article that, although both Dems and Repubs will get their increased benefits from raiding the SS coffers, "For the first time in history, the DEMOCRATIC Congress will not allow an increase in the Social Security COLA..." That's a direct quote from the link you directed me to and THAT'S THE DEMOCRATS FOR YOU, OBAMA'S PARTNERS IN CRIME. PS I know I'm pretty direct in the things I say, but I don't mean to offend anyone on mylot personally; ;you have been very acerbic in your remarks of late. I've always been a minority of one, not a groupie, as in following the herd. My only shepherd is God. Unfortunately, I feel it is you who is exhibiting the herd instinct in being part of a majority of Americans who are in the wrong about the usurper and all the danger it presents. The "weird kick" you say I get out of blaming O, is, in fact the joy of the revelation of truth in face of the despair of continuing deception.
@millertime (1394)
• United States
10 Oct 10
If you mean, do I feel hostile toward the federal government, you bet I do! I have felt that way for some time now and not just since Obama took office. While I vehemently disagree with his policies and the Democrats policies in general, I started becoming disillusioned with our government during the Bush administration. The Republicans were supposed to stand for smaller government and less government spending but they seemed to abandon those ideals lately. Their recklessness is what prompted the public to vote for "change", not knowing that the "change" the Democrats had in mind was the very same reckless government fiscal policy, only about 10 times worse. THAT'S why the economy has not improved and won't improve until they change their ways. It's also why the tea party has found so much success. The PEOPLE have realized that the government needs to STOP SPENDING. PERIOD. They realize that our country cannot keep mortgaging it's future and jeopardizing our economic stability by continually spending more than it makes year after year. Anyone that lives within their household budget knows this. Obama got into office because the Republicans let us down and people forgot that the Democrats have always been the tax and spend experts, so they bounced from one irresponsible party to the other. People want the economy to improve. I am still working and I haven't had a COLA increase for 3 years. I'm still making the same amount that I was making 3 years ago and my cost of living continues to rise. The only way things will get better is if we get people into office that will actually change things. We need to cut useless government programs, stop wasteful spending, eliminate pork barrel projects. A big majority of the public are forced to cut their spending to live within their means and it's high time our government starts doing the same. If they cut out all the crap, they would have enough money to fund Social Security like it should be. You know why the tea party keeps gaining popularity? It's because it's made up of regular, everyday people who GET IT. People who want to put people into office that will do what is right for the country and not for their own interests. Career politicians look out for themselves, not us. We need non-politicians in office. We need term limits for congress. We need to eliminate the retirement benefit for congressmen and senators. They don't need to retire from government. It was never intended to be a lifetime job. It was intended to be a government by the people, regular people, who serve a term or two and then go back to their regular lives. Sort of like serving a stint in the military. Neither the republicans nor the democrats are willing to make these changes. They are not willing to give up their perks and preferential treatment. They continue to think they are somehow special because they have a title of senator or congressman and they act as if they are lords. To me, they are nothing. All they did was get elected to office. That in itself does not automatically make them anything special at all, except maybe a better than average liar. It's time that we the people start DEMANDING that our elected officials do what's right. We have to start holding them accountable for what they do in office. People need to be informed and involved and that's what you are seeing with the tea party. People are starting to stand up and be heard. Most of the people of this country are independents and they are tired of bouncing back and forth between two political parties when neither one of them can get it right. It's time to get the career politicians OUT. We need to elect more independents or Libertarians and put our country back on track. We'll see if it really is a government by the people and for the people very soon.
@bobmnu (8157)
• United States
10 Oct 10
Just one example is that local communities are laying off police and firefighters telling people that they need to raise taxes or reduce important services. Never do you hear them talk about laying off political appointees or offices aids of elected officals. It costs over several billion in congressional aids and staff salaries not to mention the expenses when they travel or go with the congressman on a fact finding trip. Maybe a good place to start laying off is the congressional staff and the salaries of the congressmen and their aids.
1 person likes this
• United States
10 Oct 10
Kudos to you millertime. Thank you for an exceptional response. You said it all and I concur with every word you said.
@mattic (282)
• United States
10 Oct 10
The truth about Social Security is that most recipients have drawn out more than their "payments" within the first five years of benefits starting. Any increases in benefits then come from younger workers paying into the system. We should simply cut off Social Security for all those 50 and younger and pay off all those above that age who have paid into the system.
@bobmnu (8157)
• United States
10 Oct 10
One of the problems of saying that most people use what they put in in 5 years is that you have to remember that the employer also contributes. If you use a simple compound interest and assume you have an average salary of $35,000 over 39 years you will come up with just over $100,000 paid into SS. But if you figure the employer share and a simple interest rate of 5% you will end up with $620,000 which changes the number of years to just over 30 years to draw down the money. This does not figure interest earned as you draw down the balance. This would be one reason why giving the ownership to the individual rather than leaving it with the government.
• United States
10 Oct 10
bobmnu that you for your excellent algorithm. I know I have not exhausted what I paid in contributions over a 35 year period. I have been receiving Social Security for 6 years. I also wonder what is done with all the contribution paid in by people who unfortunately do not live long enough to receive Social Security. As Obamacare does cut medical benefits for the elderly then many more people will die before receiving Social Security. Seemingly Obama and his minions feel that the elderly have nothing left to contribute to society.
• United States
10 Oct 10
oops typo should read.... thank you for your excellent algorithm
@djbtol (5493)
• United States
11 Oct 10
No, I do not feel hostile, yet. It is not easy when there is no increase in income since the cost of living continues to rise. Generally it is those in office at the time something becomes known that are expected to take the heat. obama thus far is the most obvious exception to the rule. Let me throw out a balancing thought. This is just a thought, so please do not throw anything if this comment annoys you. You have an expectation that there will be a COLA for social security every year. Do you feel that has been promised? Is there a basis to expect that increse? I work for a manufacturing company and have a salary position. For a number of years my annual merit increase has been 2%, which I consider way too small. Maybe Social security should be increased by the same 2%. Would that not be fair?
@spalladino (17891)
• United States
11 Oct 10
Social Security and V.A. COLA are basically the same thing as merit increases. When I worked for a community college we were in the same boat...expecting an COL increase every year...sometimes it was nice but one year it was only 1%. Since your 2% is higher than the 0% we're currently looking forward to, sure, I would find that fair.
1 person likes this
@Thoroughrob (11742)
• United States
14 Oct 10
I do feel hostile for the fact that I am positive all of them have gotten a cost of living raise. Take away from the poor, that cannot take care of themselves.
@Lakota12 (42600)
• United States
15 Oct 10
you bet I do. Every thing is going up and job losses so bad I do beleive we need a raise too. LIke I said in a post they need to give SS a bailout! put our money where it needs to be!
@meme0907 (3481)
• United States
12 Oct 10
this was shocking to me too...i think it stinks,it's bad enough that ppl who depend on SSDI have to make it on such a small amount but then no raise again!!!
@anniepa (27955)
• United States
11 Oct 10
It wouldn't matter if this was the second year of Mickey Mouse's Presidency! I don't like it anymore than you do but you shouldn't be surprised, it was reported last year at the same time it was announced there would be no increase for 2010 that there wouldn't be any again in 2011. It has nothing - zip, zero, nada - to do with President Obama, President Bush, the Republicans or the Democrats in Congress, it's because they screwed up and gave too high of an increase in 2009. Actually, I think the way they explained it was that once gas prices stabilized, which was after the COLA had already been calculated, it turned out the increase had been considerably higher than it "should have been". Annie
@piasabird (1737)
• United States
10 Oct 10
It really doesn't matter if it's Obummer's fault or not, the people are going to be angry and he's gonna get the blame. Well, he and the Dems and it's not a good thing for it to be happening so close to an election.
@Rallon (441)
• United States
11 Oct 10
Yes, I saw this in the news earlier today as well. While I completely agree with you on governmental spending (they're out of control), it's not Obama's decision to raise the cost-of-living or leave it be. It is entirely based on weather inflation rose or fell during the previous year. While we are all feeling a pinch, according to the numbers inflation did not rise enough to raise it. Also, last year Congress did pass a stimulus to compensate those who were effected. That helped out okay, with the exception of it coming out of any income tax refund that those people received at the end of the year. So, it wasn't really the same as getting a raise because they had to pay it back (if they worked). They will undoubtedly try to at least pass a similar bill again this year to make up for COLA. So with that said, the real question is why are they saying that inflation has not gone up? Clearly, it has. Food prices are up about 5% as compared to last year. Then there is the every-climbing costs of fuel, medical care and utilities. When the prices for everyday essential items keeps going up, that is what inflation is! On a counter note, deflation and inflation actually go hand-in-hand. While everyday items go up, other things such as houses and big item purchases actually go down. The trouble with that is you still can't afford those things because the essentials take up any savings or extra cash you would have otherwise. Hope we don't end up like in the Great Depression with the wheel barrows full of useless money.