No raise for those on Social Security.
There’s a double ouch for the economy as we begin the week. Almost 60-million people who rely on Social Security checks won’t be getting a raise this year. According to the Associated Press, it will mark only the second year without an increase since the COLA, automatic adjustments for inflation were adopted in 1975. The first year was this year. The trustees who oversee Social Security say their will be no cost of living adjustment for 2011.
No raise, means millions of dollars the federal goverment won’t have to spend, money it probably doesn’t have. It will also mean that the millions of disabled and retirees and others who depend on their monthly government check won’t have any more to spend. When those folks spend, it puts cash into the economy. It helps the restaurants, casino’s and retail stores of Las Vegas. Gasoline prices are climbing again right now, a bottle of drinking water at my after gym stop went up from 99cents to $1.39 in one day. I’m not on Social Security, not yet, but like many of my generation who have paid into the system for several decades I expect to be. The downsizing and dismal months of this economic mess has left many of us with little or no nest egg. Living on Social Security with the high cost of everything doesn’t appear to be “easy street”, but it will help all of us if the COLA raises once again kick in.