• Increase In Social Security Benefits Could Add To Inflation

    October 19, 2022
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    The Social Security Administration (SSA) has announced that it will be giving an 8.7% cost of living adjustment (COLA) increase to those receiving benefits. The raise will take effect in 2023 and will provide an extra $140 per month for the average recipient. The SSA also increased the COLA 5.9% in 2022. The most recent increase is the highest COLA in 40 years.

    With the new COLA, the trust fund will be forced to pay an estimated additional $100 billion in benefits per year. According to the Social Security Board of Trustees, the fund will only be able to pay recipients their full benefits until 2035, at which time it will only be able to pay 80% of the expected benefits.

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    According to a spokesperson for the Committee for a Responsible Feder Budget, the 2023 COLA could deplete the trust fund a full calendar year earlier than expected.

    The reason for the 8.7% COLA is to help retirees combat rampant inflation. Unfortunately, due to the way the COLA is calculated, it does not provide an accurate cost of living for most seniors. Calculations completed in 2020 show that Social Security benefits had seen a 33% reduction in their buying power since 2000 and that was at a time when inflation was considered low.

    To complicate matters, Peter Schiff explained how responding to inflation by raising the Social Security COLA actually does more to further increase inflation than to help recipients deal with it. Schiff said, "People are supposed to cut back when prices go up. But if the government gives everybody more money to pay the higher prices, you're just fueling the inflation, and it's like a dog chasing its tail. You're never going to catch it, which is why the government is never going to bring inflation down."

    With the Biden administration disguising excessive money printing as "stimulus packages" and "military aid" for Ukraine, it's no surprise that inflation is at a 40-year high, and with the Social Security COLA the highest it's been since an 11.2% increase in 1981, it shows no signs of slowing down anytime soon.

    Author

    Jen Snow

    Jen Snow is a former paralegal turned freelance writer who has a passion for foreign affairs. When not writing, she can be found curled up with her dog and a good book or outside playing in the Florida sun.
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    Frank

    So glad Peter Schiff is willing to "cut back" when prices go up. Could he tell that to my landlord who just jacked my rent up? How about the utility companies who raised their rates. Not to mention insurance, clothing, gas, groceries. Most retirees have already "cut back", just to get by. I don't listen to advice from out-of-touch "experts", just from folks like me.

    Diana Barahona

    I agree with Frank. I'm done working long hours every day to pay into this rigged system, and the extra $45 a month I'm going to get won't cover my $115 rent increase, let alone the hike in food prices.

    The transnational capitalist class has been siphoning off trillions of dollars of wealth every year through various money-laundering schemes (e.g. foreign aid, military and intelligence spending) and putting it into the secret space program. They abducted our children and tampered with our genes. In return, we got cell phones that can track and potentially kill us, as they dismantled our telephone landlines and crashed the economy for a digital currency linked to compliance.

    Now that the capitalist class is going down (thanks to Trump), there will be plenty of wealth for everyone, which is why they are helping out pensioners with a modest COLA.

    guest

    Figures it was Peter Shiff saying this... the most pathetic argument against SS i ever heard.

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