Obama Promised Social Security Recipients $250 To Offset COLA Freeze: Where Is It?

by Daniel T. Zanoza, Executive Director

 

In January of 2010--for the first time in nearly three decades--Social Security recipients did not receive a Cost Of Living Adjustment (COLA).  It is being reported the COLA freeze may remain in effect for up to three years.  COLA's are calculated according to the Consumer Price Index (CPI).  The CPI is a measure which estimates the average cost of goods and services purchased by households. 

 

The U.S. Dept. of Labor calculates the CPI.  Seniors and the disabled who receive Social Security benefits did not receive a COLA in 2010 because the CPI indicated there was no increase in inflation. 

 

Now, there are those who swear by the CPI, but every American who purchases goods and services knows full well there has been an increase in the cost of living.  Anyone who disagrees with this fact must not do grocery shopping or pay utility bills and they must be living in a cocoon.

 

The COLA freeze will save the U.S. government billions of dollars and there have been reports there will not be a COLA for two years or more.  Someone must have a crystal ball at the U.S. Bureau of Labor Statistics which can predict there will be no inflation for the next two years or more.  However, some economists are predicting the United States may go through a period of hyper-inflation in the near future. 

 

To soften the political blow from the fall out regarding the COLA freeze, late last year President Barack Obama suggested a one-time payment of $250 for Social Security recipients.  However, when Republicans suggested the money for the one-time payment come out of Obama's $862 billion stimulus package, this issue was taken off the table.

 

Why didn't Social Security recipients receive a COLA?  Democrats had other ideas for use of the stimulus money, including building tunnels for migrating turtles, trains for visitors who want to get a good look at California's wine country and we must not forget the millions of dollars that were allocated for Congressional Districts that do not exist. 

 

The strange thing is the Obama administration and the Democratic Party poured salt on an open wound with the passage of health care reform which cut Medicare by $500 billion.  The message seniors are being sent is they are expendable--both in life and at the ballot box.  But, one of these days, someone's going to remind the Democratic brain trust that the senior voting bloc they controlled for generations may have flown out the window with fiscal responsibility. 

 

Perhaps the Democrats were counting on the votes of illegal immigrants (via the passage of comprehensive immigration reform) to replace the political support they had received from the elderly.  However, due to the failure of the U.S. government to enforce existing immigration laws, this issue may have a huge impact in the upcoming midterm election and even more Democrats may be left out in the cold. 

 

Therefore, I would expect those who receive Social Security to get a little financial bump before November.  The Democrats aren't that stupid...or are they?

 

SPECIAL NOTE:  RFFM.org's Daniel Zanoza Discusses Advocacy for Seniors, Retired and Disabled on Dr. Laurie Roth Radio Show:  http://rffm.typepad.com/republicans_for_fair_medi/2010/07/rffmorgs-daniel-zanoza-discusses-advocacy-for-seniors-retired-and-disabled-on-dr-laurie-roth-show.html

 

Related Articles:

 

Obama's Cuts to Social Security, Medicare and Other Programs Leave Seniors and Disabled On Outside Looking In, Economically and Politically:  RFFM.org To Launch Effort To Inform Seniors, Retired And Disabled About Issues Involving This Group
http://rffm.typepad.com/republicans_for_fair_medi/2010/07/obamas-cuts-to-social-security-medicare-and-other-programs-leave-seniors-and-disabled-on-outside-loo.html posted July 13, 2010 

 

Social Security COLA: Congress Gets Pay Raise, Seniors & Others Did Not by Daniel T. Zanoza

http://rffm.typepad.com/republicans_for_fair_medi/2010/01/social-security-cola-congress-gets-pay-raise-seniors-others-did-not.html posted Jan. 22, 2010

 

Anyone wishing to receive RFFM.org e-mails should contact:  [email protected]  

NOTE: Comments to RFFM.org's blog which include ad hominems or personal attack will automatically be rejected.  No hyperlinks allowed.

To make a secure online donation to support RFFM (Republicans For Fair Media), please go to:  https://www.paypal.com/cgi-bin/webscr?cmd=_s-xclick&hosted_button_id=5U5V8GAKCYTU8

Comments

[Charlie]

If they are not that stupid, they have not been doing much to prove it lately. Sadly,neither have the American voters. After the removal of funds for MEDICARE, I have enough left in my Social Security check every month for a couple of trips to Burger King every month for a filling meal, if I go alone.

[Lansing Social Security Lawyers]

Very Interesting Article, I did not know they used the CPI as their inflation adjuster. I've read alot articles lately where the investment analysts are worried about inflation with the inevitable push back up of low lending rates. With all the talk on wall street lately that inflation is a huge risk I find it puzzling that it's projected to have to COLA adujustment for the next 3 years. Good read.