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This COLA has no Fizz
Old 10-25-2011, 07:49 AM   #1
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This COLA has no Fizz

(Yes, the FIZZ business is mine)

PORT WASHINGTON, N.Y. (MarketWatch) If you are counting on seniors to help jump-start the economy because of the Social Security cost of living adjustment (COLA) they are scheduled to receive early next year forget about it! This increase is not as good as it looks.

COLA is much ado about nothing - Irwin Kellner - MarketWatch
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Old 10-25-2011, 09:14 AM   #2
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Originally Posted by MarketWatch
If you are counting on seniors to help jump-start the economy because of the Social Security cost of living adjustment (COLA) they are scheduled to receive early next year — forget about it!
False premise. COLA is never meant to jump-start the economy. It offsets some price increases. That's all.
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Old 10-25-2011, 09:31 AM   #3
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False premise. COLA is never meant to jump-start the economy. It offsets some price increases. That's all.
And to the extent that the "essentials" most often purchased by retirees of moderate means have tended to inflate faster than the overall CPI in the last several years, it doesn't even fully do that.
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Old 10-25-2011, 10:25 AM   #4
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I don't see this year's COLA as being worse than any other year. In fact, in the 17 years I've been drawing military retired pay, It's the 3rd highest COLA I've received. For me, the raise pays my electric bill. It's not insignificant.

I suppose the two years of zero increases sticks in the minds of some. But what's done is done.

All the bleeding heart media likes to concentrate on the 80 year old widow, drawing $700 a month, with a drug bill the size of a new car payment. And while I have sympathy for anyone in that situation, I don't think it's typical. This year's COLA is appreciated by many of us.
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Old 10-25-2011, 10:32 AM   #5
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All the bleeding heart media likes to concentrate on the 80 year old widow, drawing $700 a month, with a drug bill the size of a new car payment. And while I have sympathy for anyone in that situation, I don't think it's typical. This year's COLA is appreciated by many of us.
I know I'd appreciate it. I've had no raise in four years, and a total of 2% in the last 6. And the increase in my share of health insurance premiums more than ate that up, so my take-home pay is less today than in 2005. And that's in *nominal* dollars. Adjust it for inflation (especially real inflation on essentials, not just the CPI) and it's at least 12% less than it was six years ago.
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Old 10-25-2011, 11:02 AM   #6
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I know I'd appreciate it. I've had no raise in four years, and a total of 2% in the last 6. And the increase in my share of health insurance premiums more than ate that up, so my take-home pay is less today than in 2005. And that's in *nominal* dollars. Adjust it for inflation (especially real inflation on essentials, not just the CPI) and it's at least 12% less than it was six years ago.
No matter where our income comes from, we should be thankful for any increases. I just don't get all the hand wringing I'm seeing and reading in the media concerning this year's COLA. Especially when all federal benefit programs are under such scrutiny.
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Old 10-25-2011, 09:02 PM   #7
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No matter where our income comes from, we should be thankful for any increases. I just don't get all the hand wringing I'm seeing and reading in the media concerning this year's COLA. Especially when all federal benefit programs are under such scrutiny.

Agree. COLA shouldn't even enter in to the equation. SS should be indexed to wage gain/loss (i.e. how non-retirees' income is changing in aggregate, and where the $ for SS benefits comes from). Be thankful SS hasn't *decreased* by 8% because that's how much wage deflation there has been the last few years. Take the zero or small COLA gains and be happy and thankful.
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Old 10-25-2011, 09:18 PM   #8
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Old 10-25-2011, 09:31 PM   #9
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It's not a false premise, because it is not a premise.
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Old 10-25-2011, 09:35 PM   #10
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Old 10-25-2011, 09:53 PM   #11
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Old 10-25-2011, 09:58 PM   #12
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Old 10-25-2011, 10:07 PM   #13
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Old 10-25-2011, 10:27 PM   #14
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Seniors don't do the majority of the spending in this country anyway..........

I don't relish the fact I have been paying in for over 30 years and I am nearly 100% convinced I won't get one penny. Nut, I digress..........
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Old 10-26-2011, 10:51 AM   #15
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"OFGS"...

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Correct me if I'm wrong...
Yes, you are on the wrong discussion board.

You and all the other grammar guys might want to talk to Andy R about starting your own discussion board. I'd join it just to see what sort of ads would be running on it.
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Old 10-26-2011, 10:55 AM   #16
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"OFGS"...


Yes, you are on the wrong discussion board.

You and all the other grammar guys might want to talk to Andy R about starting your own discussion board. I'd join it just to see what sort of ads would be running on it.
Personally I have found this ridiculous grammar folderol to be worthwhile - it helped me get off the fence on adding to my ignore list!
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Old 10-26-2011, 11:43 AM   #17
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Old 10-26-2011, 11:58 AM   #18
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SS should be indexed to wage gain/loss (i.e. how non-retirees' income is changing in aggregate, and where the $ for SS benefits comes from). Be thankful SS hasn't *decreased* by 8% because that's how much wage deflation there has been the last few years. Take the zero or small COLA gains and be happy and thankful.
Actually SS benefits are indexed to the wage base, at least prior to age 62 when you could actually start receiving benefits. I saw my estimated benefits go down earlier this year from the prior years estimate because of that.
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Old 10-26-2011, 12:09 PM   #19
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Well, folks, grammar is what I did for 40 years, so it interests me. Besides, the relationship between the premise of an argument and the antecedent of an if-construction has more to do with logic than with grammar. Anyone interested at all in logic?
How about each time you come across things like this you create a new thread in the "Other" forum. I have no problem with this practice and as shown in the thread on the spacing between sentences there are others that are happy to discuss these issues. It is diverting threads like this from the main subject that is particularly annoying to many members.
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Old 10-26-2011, 12:32 PM   #20
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How about each time you come across things like this you create a new thread in the "Other" forum. I have no problem with this practice and as shown in the thread on the spacing between sentences there are others that are happy to discuss these issues. It is diverting threads like this from the main subject that is particularly annoying to many members.
+1

I was going to suggest this, as I'm one of the weird ones who appreciates GregLee's expertise and input on grammar. But I agree that maybe just a note and a link to separate thread for grammar discussion would be best. That way, we can discuss at length (or not), w/o 'intruding' on the current thread. And we could get our grammar lessons all in one handy spot!

Win-win?

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