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Citing a 2008 third quarter cost of living decline, Congress has voted no cost of living increase in next year’s Social Security checks for the first time since 1973.

Congress just rubber stamps what the CPI-W formula produces. SS is on automatic pilot. This is not a conspiracy or politically controlled.

COLA Estimates

SS COLAs are based on the change in CPI-W (Consumer Price Index for Urban Wage Earners and Clerical Workers) from the third quarter in the prior year to the third quarter in the current year. The calculation time was right in last year's energy price spike, so they got a honking big 5.8% COLA at the beginning of this year (SS COLA FAQ, COLA History). The CPI-U (Consumer Price Index for All Urban Consumers) has dropped in the last year (July to July) by about 2% and the CPI-W was similar, but I don't have a link to a nice table on it. My inflation adjusted bonds have dropped to a 0% return this half year because of that.

CPI-U from 1913-2009

(sorry for the ugly table, but I couldn't format it nicely)

Year Jan. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec. Avg. % change Dec-Dec % change Avg-Avg

2006 198.3 198.7 199.8 201.5 202.5 202.9 203.5 203.9 202.9 201.8 201.5 201.8 201.6 2.5 3.2
2007 202.416 203.499 205.352 206.686 207.949 208.352 208.299 207.917 208.490 208.936 210.177 210.036 207.342 4.1 2.8
2008 211.080 211.693 213.528 214.823 216.632 218.815 219.964 219.086 218.783 216.573 212.425 210.228 215.303 0.1 3.8
2009 211.143 212.193 212.709 213.240 213.856 215.693 215.351

PLUS,the first 8750 of taxable income is taxed at 10% now, if they abolish it and put it back in the 15% bracket the person with 8750 in income will be treated to a 50% INCREASE in his taxes. That oughta keep him frosted for awhile.

Having read through the posts on the SS cola suspension I have bee unable to determine if the COLA applies to all other government agencies and employees, including military if covered, and welfare benefits. It has been my understanding that COLAs were automatic if a govt check was involved. The socialist democrat party supported taxing SS benefits during the Clinton Gore years and it did not seem to dampen the senior turnout for the RATs. Also, I have not seen anything regarding whether there will be an increase in Medicare payments which generally pretty much wipe out the SS COLA each year. Will the govt now stop that increase as well? Inquiring minds etc.

Who didn’t see this coming? Last year there was a pretty substantial increase, plus that $250/recipient one-time bonus this year.

With the babyboomer generation coming on board, life expectancy expanding for those who’ve been on SS for decades now, etc., I don’t know how this thing stays aloat, short of some serious ‘end of life’ counseling.

Living on SS under Obama in a nightmare of lies . I shop once a month for all my needs and pay more for everything every month . I will be homeless in 2010 without an increase in SS . My savings are gone and can no longer live month to month .
I was told a year ago that Obama had no idea what being poor or elderly in all about .
Your right he will cause people to die in this country in 2010 . I’m one of them .
We will never seen a president like JFK again . Obama is what he said he was not . 8 More years of Bush .
Everyone wanted to say “ I elected the 1st black man . Nice ! That’s the wrong reason to elect a president .
We needed a true leader . A man or woman of the people and the environment . We had or chance with Al Gore who would have made saving the planet possible and at the same time that would have saved the economy by creating tens of thousands of new companies . By the way any historian would tell you you can not win a war in Afghanistan . It’s been tried many times .
Then we could of had Hillary Clinton .
The Voters have spoken and we all suffer for their ignorance .
I’ll leave you with one thought . “ Why are we trying so hard to find water on the Moon and Mars “ .
The End .