Social Security Says No Cola for 2010: Obama Says $250.00
There are over 50 million elderly and disabled Americans receiving Social Security payments. Not all, but many of these people depend on their payment to just provide for their own basic needs. For full disclosure, my five-year-old handicapped daughter receives an SSI payment.
Each year since 1975 the Social Security checks adjust for cost of living expenses. It isn’t literally a big adjustment, usually between a 3% to 5% raise in the check. But, when the recipient is trying to use this money to pay for their basic needs, that small percentage can mean the difference in paying their electric bill or having enough food to eat for the month.
The Social Security Administration announced this morning that there will not be a cost of living increase (COLA) for the year 2010. This will be the first year since COLA was adopted that the increase will not take place. Supposedly, {note of sarcasm} the reason behind this is because consumer prices have fallen and there was “negative inflation” in 2009. According to the Labor Department, gasoline prices have fallen 29.7 % and energy cost have fallen 21.6%. But, what the Social Security Administration is not accounting for is the additional health care cost, which are not reflected in estimating consumer prices, on these senior and disabled recipients. Usually, seniors and those with debilitating conditions are going to spend a disproportionate amount of their income on health care cost.
Social Security Commissioner Michael J. Astrue told the press, “Social Security is doing its job helping Americans maintain their standard of living.” I call B.S. loud and clear! The Social Security Administration and every politician that does stand up for their elderly and handicapped constituents should be ashamed of themselves. Especially Republican Senator Judd Gregg whose narrow minded view of “cost of living” prompted him to publicly support the Social Security Administrations decision.
Even in my small state of Mississippi, I have seen around a 25% increase in the cost of most items at the grocery store, my electric bill, garbage bill, cable, etc… I may not be an economist, but I can look back to 2008 and see where I paid $1.00 for the bleach that I am now paying $1.59 for, $2.22 for the gallon of milk that I now pay $3.99 for, $180.00 for the electric bill that is now $250.00, etc… etc.. The Social Security Administration is also trying to skew public opinion of just how bad this lack of COLA would hurt SSI recipients by stating that the average SSI check is $1,094. A thousand plus SSI check might ring true for recipients in states that supplement the federal SSI check, but states like mine do not come close to that number. A Mississippi SSI check for a disabled person tops out at $609.00, and that is with an income of zero.
In the mean time, the White House announced that President Obama would seek another $250.00 stimulus for seniors, veterans, rail road workers, and the disabled. See here for information on the last $250.00 stimulus. The additional $250.00 would configure to be around a 2% increase for the average SSI recipient. However, President Obama has not come up with a plan to finance the 13 billion dollars worth of payments and says that he will leave that aspect up to Congress. If Congress passes such, I guess it would be better than nothing. But, like I said above, the difference in 2% and 5% can mean people choosing between having food for the month.
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User Comments
Joe Dorish
On October 16, 2009 at 12:33 pm
Hope Congress passes the $250 stimulus quick so all SS recipients can get something this year.
Phill Senters
On October 16, 2009 at 2:09 pm
A good post Jo.It would be very interesting to see an interview of a prominent politician while he lived for a year on the income that the elderly and disabled must get by on.
Ruby Hawk
On October 16, 2009 at 8:24 pm
Righto. our rent, utilities, food, medicine, all our bills go up every year. Nobody puts a freeze on those.
revivor
On October 17, 2009 at 7:37 am
good point – and I thought you were talking about Pepsi (ignorant Brit!!)
Elizabeth Abbott
On October 17, 2009 at 10:32 pm
This article is well spoken. How in the world can people survive on these small amounts of income? So far below the poverty line?
The results remains to be seen. Sad. So sad.
Disgusted in NY
On October 18, 2009 at 5:05 pm
Anyone ever hear of “giving a dog a bone” well that is what Obama is doing to us. Yes, this is the first time we will not be getting our COLA increase but Hey, what about next year or the year after. Is this just the beginning of the end for us seniors and disabled people. We must start now to stop this from happening again in 2011 or 12 or whatever Obama feels like. Since his mother in law lives with him may be he would like to take me in and I can be a friend of his mother in law. Politics at its best!! I truly believed Obama when he said YES TO CHANGE and that is exactly what he is giving me change loose change that fits in my pocket. I am so sick of hearing about us paying for wars for Pakistanis, for Afghanistans when they have plenty of their own money. I am so glad Mr. Obama that you think it is okay for me to pay for the above named people to live on the money I have worked for my entire life for because you made a CHANGE. What a load of crap Pres. Obama.
Melody Arcamo Lagrimas
On October 25, 2009 at 6:39 am
Very insightful.
Clara
On November 7, 2009 at 8:22 am
I agree, we are lucky to have 1 dollar for the rest of the month, how would the people that work at the white house like to live like we do? they get their pay checks and live high on hog, we go to food pantries for help for food to survive throughout the month. do they no, they eat steaks and so on. and as far as everything dropping in price, I’d like to know where, not here in upper Michigan, no jobs, nothing and does any body care, NO! We don’t even count.How about taking a look at us and what’s here, I’ll tell you NOTHING, this has been made a ghost town. Thanks to governor.moving everything everything out, and places that made car parts and all. but who cares, she eats good to. and it gets worse,I don’t need to say anymore,if you live here, you know what I’m talking about.
B Nelson
On November 15, 2009 at 7:28 pm
I am not in the states but it seems to me their biggest expense (other than toilet paper for $140) is the military.
Sorry folks, it is what I see. In Canada we once had a leader for the REFORM party who wanted to take a pay cut himself, never heard another policial leader do the same… and that guy is no where to be seen today… guess he got pressured down.
By the way I used to live on part time work for minimum wage, and I never took welfare even though I was qualified, its not how much money you have its how you spend it.. put me in power and I would have your economy problems fixed yesterday
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