In 2009 the Government did not give the Senior Citizens on Social Security their Cost of Living Adjustment (COLA) due to a ridiculous formula pass by Congress. PLUS, the government finally figured out a way to permanently cap the payments to Seniors, don’t allow COLA increases. In lieu of this loss, Obama “gave” the seniors a $250.00 stipend to hold them over. Guess What? It is happening again and again Obama and the Dems are going to give the Seniors their $250.00 stipend out of the goodness of their heart. Government employees, congress, their staffs, the white house staffs, received their COLA increases. Obama bailed out every public sector union in the country so they did not lose any of their increases or benefits. But, Let’s Stick It to the Seniors!
How does the amount the seniors are getting robbed equal almost $10,000 over 5 years? Do the math. Say the average Social Security payment is $2,100.00/month or $25,200/year. Also assume that Obama is going to “give” the seniors another $250.00 in 2010. Remember, the loss of an increase in year one and two compounds negatively over the 5 years assuming their are COLA increases in the future.
Of course Obama and the Congress last year and this year say that that is the way the COLA formula was set up! SO! Who created the COLA formula in the first place, the EASTER BUNNY?
The government single handedly ruined the real estate market, the stock market, the credit industry and every other institution that individuals need to build any kind of future. For seniors, most lost at least half of the value of any 401K they may have had. If they rely on Bank CDs, those are almost yielding negative returns. In short, while Seniors are being driven into poverty by years of government ineptitude, that same government now is abandoning them again.
Congress and Obama are smarter than I thought. They now have a way to put a lid on Social Security and save almost $500B over 5 years. All they have to do is give seniors $12.5B ($250/each) and they can cut $500B. Obamacare will slash another $500B+ out of Medicare; Medicare Advantage is gone and Seniors are scrambling to get additional coverage at additional cost that they are paying for. Everyone happy? Not Quite.
We may be old but we are not DUMB!
I hope the Younger Generations are Smart Enough to See what they have to look forward to.
Remember on November 2nd.
*Assummptions: 50M Collecting Social Security; COLA average 4% per year; No COLA in Yrs 2009 and 2010; 2008 Social Security Monthly Benefit = $2,100