Skip to main content

View Diary: Hell No! Stop crushing the poor (103 comments)

Comment Preferences

  •  His problem (6+ / 0-)

    Is in his initial assumption: That the $800 per month you received last year is the same $800 monthly you'll receive next year, so it isn't a cut.

    But that isn't how the program works.  

    Assume a recipient got that $800 per month last year.  This year, the COLA was 1.7%.  That RAISES the base monthly payment to $814.

    Next year, if the COLA is 2.0%, that increase is now calculated from the new base payment of $814, not the constant $800 figure that he keeps using; next year your base monthly is $830. and the next COLA is calculated from that. He acts as though the COLA is a little one-time bonus that shows up once a year in Social Security checks; it isn't, it's added to the base monthly payment.

    It's the compounding effect of the COLA that makes for the dramatic decrease in Social Security payments over time with the Chained CPI.  

    His argument is breathtakingly dishonest.  He either doesn't understand how Social Security works or he's deliberately telling lies.

    you don't need a weatherman to know which way the wind blows

    by Dem Beans on Mon Apr 08, 2013 at 06:29:54 PM PDT

    [ Parent ]

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site