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In reply to the discussion: MoveOn Calls Obama’s Proposed Social Security Cuts ‘Unconscionable’ [View all]George II
(67,782 posts)I understand that Social Security benefits don't keep pace with healthcare costs. No argument about that.
This discussion is about the method of calculating annual benefit increases. I have two problems with the points being made in the discussion.
1. Even if the "chained CPI" is used and and assuming that it results in lower annual increases (which isn't necessarily true, as I've demonstrated), Social Security benefits will NOT be "cut", they just will not be increased as much. If I'm getting $2000 per month this year, and the current formula calls for a 3% increase, I'll be getting $2060 next year. If the CPI is only 2% and is used, I'll be getting $2040 next year - the benefit is HIGHER either way than this year. People are falsely claiming that my benefit will be "cut". How is $2040 lower than $2000? My benefit will be going up either way, $60 in one case, $40 in the other. That is NOT a "cut" no matter how you look at it.
2. Although the two numbers vary from year to year, there have been more years in the last four decades where the CPI would have resulted in a higher increase in benefits than the actual increases that occurred. It's all in plain black and white in my previous post.
Finally, and unfortunately, people are using a skewed argument as yet another excuse to attack President Obama. It's sad and counterproductive in my eyes.