January 2009: Social security payments go up by a 5.8% COLA due to increased energy costs.
December 2009: Energy prices drop 30%, so Social Security will go up by 0% (it cannot go down).
Congress/Obama want to thus give every senior $250, total cost $13 billion.
How can any this be anything else other than vote buying?
WASHINGTON (AP) - President Barack Obama called on Congress Wednesday to approve $250 payments to more than 50 million seniors to make up for no increase in Social Security next year. The Social Security Administration is scheduled to announce Thursday that there will be no cost of living increase next year. By law, increases are pegged to inflation, which has been negative this year.
Social Security payments increased by 5.8 percent in January, the largest increase since 1982. The big increase was largely because of a spike in energy costs in 2008.
Inflation has been negative this year largely because energy prices have fallen. Gasoline prices have dropped 30 percent over the past year while overall energy costs have dropped 23 percent, according to the Bureau of Labor Statistics. - AP Oct 14th