While no one welcomed the news of no cost of living adjustment (COLA) in 2010 for Social Security recipients, I didn’t hear anyone complain about an “artificially high” 5.8% increase this year (2009). Artificially high is the term used in a NY Times article discussing the $250 Social Security bonus payment President Obama has discussed recently.
I thought that was an interesting idea lost in the discussion of Social Security COLA.
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Taxpayers would have been cheering the no-COLA decision for 2010.
Given the state of the government’s finances and the aging of the population, erosion of the real value of taxpayer funded benefits is inevitable (no matter how much higher taxes get raised).