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Retirees Want Increased Social Security in Economic Stimulus Package
By
Michael A. Piekarz
Staff Writer
Congress
is considering a second economic stimulus package prompting senior
advocates to push for an increase in the Social Security cost-of-living
adjustment (COLA) as part of the package.
This congressional action is spurred by the largest one-month increase in the
consumer price index (CPI) inflation since 1982. In the last 12 months, the CPI
rose 5 percent — the largest jump over a one-year period since 1991. Congressional
leaders also want to add provisions not included in the economic stimulus package
compromise passed earlier this year.
“Rising prices pose a serious threat to the standard-of-living of every
American, particularly in light of the fact that real incomes have dropped by
nearly $1,000 since 2001,” stated Speaker of the House Nancy Pelosi, D-Calif. “Americans
are earning less yet paying more for everything from groceries and gas to college
tuition and healthcare.”
“Congress and the president must work together to restore our nation’s
economic strength. That’s why we are working to craft a new economic recovery
stimulus package — a real, American jobs bill, which will help Americans
grappling with rising prices, help get our economy back on track and help renew
the American dream,” Pelosi added.
Advocacy groups want to make sure the interests of seniors are included in the
discussion. Under the first economic stimulus package, seniors were excluded
until action by advocates and senior-friendly legislators ensured they would
benefit along with other Americans.
Of particular concern to advocates is an emergency COLA increase for Social Security
beneficiaries.
“Price inflation continues to hit seniors particularly hard. They are often
living on a fixed income and have no opportunities to increase their income,” said
RetireSafe President Michelle Plasari. “Now is the time to give those same
seniors a fair COLA.”
“With a COLA increase of 2.3 percent, the average senior living on Social
Security received a raise of about $288 this year — hardly enough to keep
up with their rising cost-of-living. Congress gave itself a raise of over $4,000
this year,” Plasari added.
The Social Security COLA was adopted to help seniors keep up with inflation.
Since 1983, the Bureau of Labor Statistics has maintained an experimental consumer
price index for the elderly (CPI-E) that tracks seniors’ expenses more
closely than the formula currently used to calculate the COLAs. The difference
in the COLA formula and the CPI-E has resulted in a lowered standard-of-living
for Social Security dependant seniors, according to advocates.
“One surefire way to include seniors in any new stimulus package is to
adopt an emergency COLA increase for Social Security,” Plasari explained. “Today’s
COLA is calculated based on the habits of young, urban professionals. It doesn’t
take into account the rising costs of healthcare, insurance and energy America’s
seniors are currently struggling with.”
Plasari noted the important role played by older consumers in the American economy.
“Senior Americans are responsible for 14 percent of consumer spending in
this country today. They are a vital and growing segment of our economy and shouldn’t
be forgotten in any new stimulus plan” she said. “An emergency COLA
increase would put needed spending money in their pockets.”
Further action on the stimulus package is expected in September 2008.
This page and its contents ©2008
Metropolitan News Company, Inc.
