Social Security Raise Election Ploy?

Great Debates
1

Hello All,
Full Disclaimer, I am disabled and as such draw Social Security Disability, so my view on the subject maybe biased.

Yesterday the Obama administration announced that those of us that receive Social Security either Disability or Retirement benefits will receive a 3.6% cost of living increase in our monthly checks. While I am thankful for the increase I am somewhat resentful of the Administration standing up acting like they are looking out for our best interest. Where the hell have they been for the last two years? I get the feeling the only reason an increase was approved is the upcoming election cycle. I mean, you don’t want to be the incumbent and have a few million seniors pissed off at you.

To expand a little: Those of us who rely on SS haven’t had a cost of living increase for going on 3 years now. Of course with this increase it works out to a little more than 1% a year. And we all know that gas, electric and groceries haven’t gone up one penny in the last three years. To top it off there was an announcement, but no figures I have seen yet, that the cost of our Medicare premium is going up in conjunction with our COL increase. That’s great Obama, give us a desperately needed adjustment and then take it back from us on the back end.

I guess what really pisses me off is that the Democrat party is constantly telling us how the Republicans only care about “big business” and the only party you can count on to look out for the working man or the poorer people in our country is the Democrats. Then they bull a B.S. move like this one. The current administration wants us to do more with less, yet the Obama’s have used 4 million of our tax dollars for vacations in the last year (and no, off hand I don’t have a cite for it, but have read it several times. I don’t have the time to look it up now). Yeah, 4 million is a drop in the bucket when it comes to the US Government, but it does show a ton of hypocracy that we, the unwashed masses, are expected to take the cut and make do yet the politicians see nothing has too good for themselves. And like I said, coming from the very ones who tell us that they “have our back”.

I am one of the lucky ones. I worked for 20+ years and made a very good living. Because of that my monthly benefit is higher than most, but still not enough to live decently on. I still have to choose every month between basic things. Like to cut way down on groceries so I can afford my meds. I by no means think that if you are receiving a government benefit you should be living “large”, but enough to actually live decent would be nice.

I might also add that this benefit is not a handout, I worked my whole life, since I was 14 and paid into the system. I never thought that I would, short of turning 65, be receiving Social Security. I might also say that I was saving for retirement and not relying on Social Security alone. However, after my accident the company I worked for cut me loose. It took 5 years to get approved for SS Disability. The majority of my savings was used to live for those 5 years and to pay for things like prescriptions at $400+ a month.

Anyway, I find myself ranting on now. While I welcome the increase I fear that most of it will be taken away with the increase in the Medicare premium. I fear that I will continue to struggle to pay for a place to live, gas, food and meds with no relief in sight. And most of all, I can’t shake the feeling that the only reason that we saw an increase this year is the upcoming election. It sickens me that the very person who claims “Change” is like all the others, worried only about his re-election. But of course I knew that from the beginning.

Anyone else get the impression that the “increase” is nothing more than lip service to the masses?

2

It is a reflection of inflation. The last 2 years they determined the cost of living did not justify a raise. I disagreed then , but this year it does by the government standards. No conspiracy here at all.

3

Cost of living adjustments are automatically calculated by the SS administration. They don’t have anything to do with Obama. It wasn’t increased in the previous three years because the COL, as calculated by the formula used in the SS, didn’t go up. This to, had nothing to do with Obama.

Increases in the Medicare premium are also computed by the SS Administration. They to don’t have anything to do with Obama.

There was a one time increase in SS payments as part of the Stimulus program for 2010 that was supposed to help people deal with the lack of a COLA adjustment, this was due to Obama, at least in so far as he signed it into law.

I’m not familiar with the exact formulas the SS administration uses, but I suspect the cost of Obama’s vacations are not a major factor in the computation. Neither is the proximity of an election year.

The President is not a God-King, his powers in the sphere of domestic policy is pretty constrained, he cannot utilize magic to give you more money except as authorized by legislation (authorization to give you more money that is, I don’t think even Congress can authorize use of magic).

Obligatory comic

4

Even assuming Obama has the power to do this, it’s over a year before the friggin’ election. If I were to try to push an SS increase for political reasons it would not only be much higher, like you were saying, but also much closer to the election. The increase seems about right to me since it’s about in line with the rate of inflation.

5

Here is a list of the COLAs for Social Security. Keep in mind that the dates reflect when the COLAs are announced, not implemented – so the 3.6% COLA is announced in 2011, but takes effect in 2012.

Looking through this, one will find that the OP is mistaken that Social Security recipients have gone two, not three, years without a COLA. Also, there is no reliable correlation between the years in which someone was running for re-election and having a higher than normal COLA. Half the time the COLAs are larger than the previous or following years, half the time they aren’t.

One would think that if giving a COLA would garner votes, all sitting presidents would do it. That doesn’t seem to be the case.

But if anyone thinks that anyone is going to remember a 3.6% COLA 13 months from now, they may be using their Medicare Part D benefits a liiiiiiittle too much.

6

If it was an election year ploy, wouldn’t ya actually want to do it just a little closer to the election?
It is entirely possible that there won’t be a COLA adjustment in 2012.
Methinks Obama is smart enough to engage in a conspiracy to bribe elderly voters when it would actually have an effect. (NOT that this increase is in any way a conspiracy to bribe elderly voters!)

CMC fnord!

7

While I’m sure it may not feel like it, the last three years have actually been a pretty good deal for SS recipients. There was no COLA in 2009 and 2010, but Seniors received a one-time payment each year anyways. So they received more money while the cost of goods didn’t increase.

And in 2009, the cost of goods actually decreased, but the COLA can’t go negative, so their payments actually increased relative to the prices of goods. And thats a permanent increase, so recipients will receive more money relative to the cost of goods for the rest of their lives then they would’ve had the economy not cratered.

Granted none of that (except the one-time payments) had anything to do with Obama either, but since your blaming him for all things, you mind as well thank him for the permenant increase in your standard of living due to the 2009 negative change in the CPI as well. Maybe he deserves another vacation.

8

Can you, or are these adjustments made only once per year at one particular time?

Not that I think this is a political ploy by Obama, but I’m not sure you can just do one any old time you want.

9

The calculation is done from the CPI of the third quarter of the previous year. So whether Obama influences when the SS officially announces it or not, once the third quarter numbers are out, its effectively announced.

And again, the actual amount of the increase is set by law, Obama has no influence on it.

10

Try living on Social Security for a while and get back to us on how good our standard of living is.

11

Try reading what I wrote. I didn’t say how good the standard of living is, I said it was slightly better now then prior to 2009. And considerably better in 2009-2010 due to the one-time payments. “Better” doesn’t mean “good”

12

Really? Wow, didn’t know how lucky I had it. I guess I will get into my BMW and go shopping at Macy’s to celebrate the good news.

Well, at least you identified the problem. Inflation has been mostly stagnant, but the cost of REAL WORLD ITEMS has gone way up, much more than 1% a year. You mean to tell me that gas in your part of the world gasoline costs $1.75 and not the $3.30 or so it is around here? And a quick look at my electricity bill, it is up $60 compared to this time last year. But I suppose my running it at 79 instead of 78 is why it has gone up. The point is the standard in which SS calculates inflation is not based in the real world.

And as far as Obama, nope you are right. He isn’t a king and cannot rule by decree. However you wouldn’t have known that listening to his supporters during the election. Remember, this is the man that was going to change everything. He was single handily going to wipe poverty from the face of the earth. Because as we all know, George W. Bush only looked out for big corporations and was intent on using and destroying those who made less than $75k a year. The point being is that the Democratic party cares about the non-rich about as much as they claim the Rebublicans do.

Of course I realize that the President has little direct control over things like this. However, in almost all of the news stories that I read concerning this increase, guess what? The photo that accompanied the story was one of Obama standing behind an American flag. Wow, it is almost like the press is trying to give the impression that the man who “has no power in this area” credit for the increase. So, if the implication that he is responsible for the increase is going to be made, then I will take the logical step and say that his ignoring of SS recipients plight over the last few years is his responsibility as well.

Oh, and as far as that “one time payment” that was quoted up thread that gave us SS recipients more money. Give me a break. That payment was $250. While I am happy that it came, don’t infer that it somehow raised our quality of life and we should be thankful that the Obama administration was looking out for us. The one time payment equals $21.25 per month for the year. Or look at it this way, it allowed me to put roughly 6.5 gallons more a month of gas in my car. Something tells me that if your boss gave you the same raise for the entire year that you would be questioning his motives too.

13

Oh really? Wow, didn’t know how lucky I had it. I guess I will sell my second condo and buy that BMW you were coveting with all my capital gains. OH WAIT, my condo has depreciated another %20 in the last two years.

My rent I pay for my apartment – and thus the rent I could get for my condo – have not increased at all in the past two years. That’s zero inflation.

14

So what you’re saying is, you think Obama is a pretty cool dude and he can count on your vote.

Wow, that 3.6% bribe for retiree support is really working.

15

So I see, as long as real estate goes down there is no inflation. The cost of food, fuel, electricity, medication and such has risen, but that doesn’t count in the real world, right? Somehow we on SS should ignore those items that have dramatically risen in costs, because that isn’t real inflation.

And yes, you do have it very lucky. I CAN’T work any longer. I want to, but for some reason I just can’t. Maybe it is the metal screws and rods in my back holding me together. You know, the ones that make it impossible to bend over or to sit or stand for very long. Or maybe it is the morphine fog that covers me 24 hours a day. Or possibly the never ending desire to fall asleep because of the narcotic pain killers.

I would give anything to work again. I LOVED working, in fact I still dream about it. I have pictures of me working all over the house to remind me of it. And when I worked if I needed more money I could volunteer for overtime. Or I could get a second job … all of which I have done when I worked. Now, I don’t have that opportunity. Even if I could take a job to help out with the bills SS puts such restrictions on what you can and can’t do it is damn near impossible to find an employer who will be flexible enough to allow you to work within the rules. YOU have the ability to be able to earn more, I and many other must rely on the whims of the government and hope that we can make it.

Don’t get me wrong, I am grateful that the SS Disability program exist. Some income is better than nothing. But it isn’t a handout, I and anyone else receiving SS benefits worked and paid for them. Just like you, and when it comes your time to collect you will be concerned about it as well. Hell, you might not even need the income that you will get from SS. But it won’t matter, you will be concerned because you worked and paid for it.

And if it makes you feel any better you aren’t the only one who has seen a 20% drop in the value of your home. I could only wish that the drop I have seen was only 20%. But, there really isn’t anyone to blame for that is there? Certainly not Obama’s problem, you know the economy and everything. Oh wait, it is someone’s problem … it is all GEORGE BUSH’S fault. I remember now. In this twisted Democrat reality it is always the President’s fault when he is a Republican. But as soon as a Democrat gets in office the mantra is now … “it’s the other guy’s fault. What can we do, the President doesn’t have any power”. Glad we got that cleared up.

16

I said your standard of living had slightly increased, not that you can afford a BMW. Did you really have an expectation that disability payments would allow you to buy a luxury car? I think the SS disability program is a very good one and would support higher payroll taxes for a (small) increase in benefits, but its meant to provide a safety net for the disabled, not allow them to buy German cars.

Real world items as opposed to what? World of Warcraft gold? The CPI is calculated by talking the costs of a basket of items, presumably these items are all purchased in the real world, (as opposed to Narnia or something?).

Fuel costs are included in the CPI, and largely what drove the increase this year. In the previous two years, gas prices were depressed below the average of the previous year, and so didn’t contribute to an increase in the CPI.

Do you have a cite saying that Obama was going to single handily going to wipe poverty from the face of the Earth? I don’t think that was a serious claim by anybody. Indeed, I don’t think it was even claimed that he would expand SS benefits, which seems to be your main beef.

17

It is truly amazing that someone can hate a politician (or political party) so much that even a move that they personally like and that personally benefits them economically is listed as another reason to dislike said politician, even when it is pointed out that said politician has absolutely nothing to do with the decision in question…

18

You probably should’ve indicated that important fact in your OP. It seems relevant to a rant about how Obama is responsible for the COLA that your aware that he has little control over the COLA.

I just went through the first two pages of google results for “COLA increase”, none had a picture of Obama (they were almost all old people). While such an article may exist, I question its true in “almost all” cases.

But in any case, your argument seems to be that the press is trying to convince you of something you know is not true, so your going to rant about how its true.

Yea, but your not supposed to get “raises” when your on benefits. Your supposed to get the same amount each year adjusted for inflation. This is the program you paid into while you were working, and while you certainly shouldn’t feel bad about drawing from it now that you are eligible, it seems silly to be angry that it isn’t some different program that gives you extra money beyond the legally mandated benefits.

Except in 2009-2010, it did give you extra money beyond those legally mandated benefits, but apparently your still pissed off.

19

Now you’re catching on. What, my inflation guru, should inflation be based on? Entirely ignoring stationary/falling rent and plumetting housing values?

20

If you re-read my post I said “I by no means think that if you are receiving a government benefit you should be living “large”, but enough to actually live decent would be nice.” The amount received for disability is not very much. I stated that I am one of the lucky ones in that I had a relatively high income, so my benefit is higher than most. However, being higher than most is still not much. After paying mortgage, utilities and prescription costs I have $128 left to live on for the month. Thankfully I am married so we have an income from my wife, but many aren’t. I am not concerned only for my well being, but others in my situation as well. Could you have a decent life on $128 of discretionary income a month?

I am not even really complaining about the benefit. But I am complaining that the COL increase that finally came has not kept up with rising costs. In essence it takes the benefit that those on SS are receiving and makes it even less. Is it really too much to ask to have COL based on the real world? It is easy for a government agency to look good by saying that inflation is staying in check, if you only base your figures on certain things. This has long been an issue for not only SS recipients but those questioning the way the gov. calculates inflation.

So, are you telling me that the items I have listed haven’t increased dramatically in the last few years? Gas, utilities and food? All stayed the same price as three years ago? Once again, the basis for calculating inflation is in my (and many others) very flawed. It is geared to put a positive outlook on the economy while ignoring rising costs.

Good to hear that. I was under the impression that gasoline costs were not factored in. I have no problem admitting a mistake on my part. However I have to disagree based on personal experience that the cost of fuel is less now than it was 3 years ago (the last increase we got). The average price of gas on October 27, 2008 was $2.66. http://news.consumerreports.org/cars/2008/10/gas-prices-2.html Last night gas cost me $3.36 a gallon. If my math is correct gas has RISEN 26.3%. That is a FAR cry from a 3.6% COLA. (remember, this COLA covers a three year span, not a single year.)

No, I don’t recall him ever saying that. What I do recall is hearing his supporters claim that. Yes, it is based on my personal experience. About a month before the election my father and I we were having dinner at the local Bob Evans. A loud conversation was taking place at the table behind us. This table happened to be occupied by what appeared to be Obama campaign workers (I surmised that by the pamphlets, hats and t-shirts the group was wearing). While talking to each other one of them said loud enough for everyone to hear (btw, this was AFTER he won the election, but prior to being sworn in. Which kinda puzzled me why the hats, t-shirts and literature were present, but whatever) “Bush should resign from office right now and let Obama take office early. Because we all know that he will have this economy fixed in a few months.”

Of course this is anecdotal, but it seems to be typical of the “believers” and the hype this President came into office with. Do you deny that during his election that he claimed to be a supporter of the “little guy”? That he was the anti-corporation President. That he and the Dem party as a whole vilified Bush as only looking out for and crafting policy around the rich? I suppose if that is your beef with the opposition then you must have a policy that does the opposite.

Do you not recall the hype that his Presidential run created? Did you forget the “Change” slogan? I don’t know about you, but I am not seeing or feeling any change but a constant struggle to stay afloat.
My main beef is that the Democratic party has always thumped it’s chest and decried the rich why stating that they have the interest of the working class and poor in mind. In reality they care about those who aren’t rich as much as the Republicans do. They don’t, until it comes time for an election to come up. Then it’s back to bashing the Republicans for only looking out for the rich. The hypocracy is sickening.

And do you think it is really not right for those of us depending on a program we paid into to provide at least enough so that we aren’t up against a wall every single month? I mentioned Obama’s vacations to make a point. The economy is in the toilet, there are many of us on SS and those who are working who are having serious problems just trying to maintain a very basic lifestyle. Yet, this President and his family don’t mind spending $4 million of our tax dollars to go on vacation. Is the President entitled to a vacation. Sure he is, but $4 million dollars worth? And he isn’t picking up the tab, we are. I would assume that last year your vacations came in quite a bit under $4 million. It just shows that this President, for all the hype about how different he was, is the same as all the others. Don’t get on TV and tell us how you know it’s tough out there, when you don’t have a clue of what tough is.