@High Seas,
High Seas wrote:
realjohnboy wrote:
...... an arcane time bomb issue that will come out in mid October. ...
Which?
Sorry. I didn't mean to be cryptic. I have written before - on some thread - about how in 2011, for the 2nd year in a row, there will be no increase in social security benefits to retirees. That news will come out on/about October 15th.
Since about 1972 the increase or the lack of an increase is based on a little known Bureau of Labor Statistics' Consumer Price Index for Wage Earners and Urban Clerical Workers (CPI-W) for the 3rd Quarter of each year. I didn't make that up, honest.
For July-Sept, 2007, the index for the quarter stood at 203.596.
A year later, in 2008, it was at 215.495, impacted most notably by a spike in oil prices. So for 2009, retirees got an increase in basic benefits of 5.8%.
Oil fell back in 2009 and inflation in general as measured by CPI-W was moderate. The index finished at 211.000.
That meant that retirees got no increase in 2010.
The CPI-W index for July, 2010, came in at 213.898 and I project the 3 month index will be around 214.500 for the quarter.
That is higher then last year but the comparison will be made to the year before that. 214.500 will not be compared to 211.000 but rather to 215.495.
Eyes, including eyes here, will glaze over. The bottom line is that, 2 weeks before the election, it will come out that there will be no increase in benefits in 2011.
Will the retirees look to find someone to blame?