I’m confused. If we’re in a deflationary period, why should people expect a COLA hike in Social Security?
Granted, but with that logic why should the congress get a automatic COLA increase?
Because we greedy old folks want to get as much of the lazy young folks money before the lazy young folks all go on the government dole! That’s why! ;-)
Does this help you understand HOW the Retirees will be affected. The value of money DECREASES but PRICES doe not.
“When the volume of money and credit rises relative to the volume of goods available – which is the definition of inflation – the relative value of each unit of money falls. This makes prices for goods generally rise. When the volume of money and credit falls relative to the volume of goods available – which is also the deflation definition – the relative value of each unit of money rises, making prices of goods generally fall. Though many people find this concept difficult, the proper way to understand these changes is that it’s the value of units of money, which rise and fall, not the value of goods.”
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“the proper way to understand these changes is that it’s the value of units of money, which rise and fall, not the value of goods.”
http://www.elliottwave.com/deflation/
last year there was a 7 percent raise in SS checks,,I was astounded. I think the program has some kind of dependence on something, some index, for raises and it is determined by law. Seems to me if the regs say no increase, there is no increase.
But the payments for medicare are going up,,determined on income. And one if one works and gets more income, the SS check reflects that.
So seniors better works,,hahahha,,I am in that boat and hubby is working.
I do think SS checks have gotten out of whack.