OTHER OPINIONS : Forget Social stimulus

By The Post-Standard (Syracuse, N.Y.)

Posted: October 28, 2009 at 5:48 a.m.

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SYRACUSE, N.Y. — The prospect of the federal government punishing Grandma and Grandpa is repugnant - so politically unpalatable, in fact, that President Barack Obama is urging Congress to send every Social Security recipient $250 to make up for this year’s lack of a cost-of-living adjustment in their retirement checks.

But the perception that no COLA is punishing or depriving seniors is inaccurate. When the measurable cost of living actually goes down, how do you justify a COLA boost?

The recession still imposes brutal costs on workers and their families. Taxpayers have taken on well over $1 trillion in debt to bail out financial institutions and stimulate the economy. Wars in Iraq and Afghanistan still cost the Treasury billions each month. If the federal government can’tjustify a modest cost-of-living boost for Social Security recipients, neither can it afford the estimated $13 billion price tag for a one-time payment. …

Social Security COLAs have come to seem automatic since 1975. Last year the boost was a hefty 5.8 percent, driven by increases in energy costs. Since 2005, there have been 15.9 percent worth of COLA hikes.

And don’t forget: This year’s economic stimulus package included $250 checks for each Social Security recipient.

The Consumer Price Index that measures inflation actually decreased this year, along with gas and energy prices.

Without inflation, there is no rationale for a COLA. And if a COLA is not warranted, neither is a one-time payment. …

Opinion, Pages 6 on 10/28/2009

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