Quote of the Day

March 8, 2010

From reader CB:

Rolfe, as you likely know there is no cost of living increase in Social Security payments this year for the logical reason that there has been no increase in the cost of living.

Nevertheless, I just received this from AARP (their boldface):

We’re already months into 2010, and seniors still haven’t seen any relief because of the lack of a cost-of-living adjustment to their Social Security. For the first time in 35 years, the regular payment update they’ve depended on did not occur.

Congress must act quickly. Will you help us flood their offices with letters, demanding that lawmakers make relief a priority?

My point – nobody will give an inch at a time when everyone needs to. Seniors as a group are better off than any other age group and are now enjoying the huge Medicare part D entitlement.

The larger point here is that, at a certain point, the young simply can’t transfer more income to the old. Though many observers don’t worry much about the unfunded liabilities for Medicare and Social Security — “they’re far out on the time horizon and are just promises that can be legislated away” — seniors are a remarkably powerful voting bloc that won’t easily be convinced to accept lower/delayed benefits…

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