When COLA Wars Not About Summer Fun!

Discussion in 'Economy' started by mascale, May 21, 2009.

  1. mascale
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    mascale VIP Member

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    Andrew G Biggs is billed as a resident scholar at the American Enterprise Institute, "and was previously the principal deputy commissioner of the Social Security Administration," according to Los Angeles Times, Opinion, May 21, 2009.

    We now know this because there is an opinion page article, "The New COLA wars," which starts off with, "There's a COLA War going on but it has nothing to do with Coke versus Pepsi," as opposed to all the other possible brands and flavors.

    "It began earlier this month when the Congressional Budget Office projected that for the first time in three decades, there would be no cost-of-living adjustment--or COLA--for Social Securityrecipients in 2010, 2011, and 2012. . . .'The absence of a cost-of-living admustment. . .will be a shock to older Americans already hit by plummeting home values, investment losses, and rising health costs,' wrote the New York Times"

    A.G. points out that the reason for the lack of COLA raise is that the raise requires an inflation rate. If there is none, then there is no raise. If prices drop, there is no decrease in the benefits, however, so A. G. Biggs further points out that the lack of raise is specious since the "raise" is that benefits stay the same while prices drop.

    What is so wrong with any of that?

    Actually, here we have three or four examples of just what is wrong. The Los Angeles Times published the article with no comment on the problem with the fixed percentage COLA. A. G. Biggs does not point out that there are several benefit amounts and levels, and each one gets the same percentage raise--when the COLA happens. The New York Times apparently made no such comment, and apparently the older Americans--and their various groups--have made no such comment.

    Anyone would say it, "That is just like school, and especially any school at the university, and graduate school level!"

    Since we are clearly, now, socially secure: What is so wrong with that? Everyone knows that the rich get riche, and that the poor get poorer--So the COLA is just like the real life that we are living through even now!

    And anyone does see that it is just like school!

    The poor didn't have enough money for the mortgage, and the rich didn't paid any of the money!

    Sob, Sob: Sob, Sob, Sob! Sob, Sob: Sob, Sob, Sob!

    "So what's the matter, Ma? What's the Matter, Pa!" Well, we ain't got the money for the mortagage on the farm!" "What! We ain't got the money for the mortgage on the farm!" "That's what we said, you dumb little schmuck! And now what the hell are we gonna do now!"

    As though we couldn't guess.

    "Crow, James Crow: Shaken, Not Stirred!"
    (Real Socialists, clearly, have no problem with any of that--Everyone's money they already have!)
     

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