In recent months, we’ve uncovered shocking discoveries related to Social Security. It seems like, despite President Trump’s promises, seniors aren’t getting everything they’ve been promised.
Social Security is a heated topic among Americans and politicians. Most people feel entitled to it, because they paid into it with their taxes for decades.
Yet lawmakers in D.C. are constantly trying to find ways of lowering what they’re obligated to pay seniors.
Now it’s been discovered that the Social Security office itself uses creative accounting to short change every S.S. recipient in America.
From Seeking Alpha:
Jumping right into it, I’m going to say, yes, the formula used to determine the Social Security cost-of-living adjustment shortchanges seniors…
Here’s what I am talking about: The formula used to determine the Social Security COLA lags behind official inflation numbers…
The COLA is based on the little-followed Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) instead of the ‘headline’ inflation number you read about each month.
The Social Security Administration doesn’t look at a full year of CPI-W to determine the COLA. Instead it uses the average index for months of the third quarter – July, August and September. By averaging three months of data, the formula lessens the effect of a one- or two-month spike in inflation, which happened this year…
In years where there is deflation instead of inflation, the COLA is set to 0.0% and the formula skips that year in determining the next year’s COLA. We have had two deflationary years in the last 10 years (2009 and 2015), but this ‘skipping’ mechanism has resulted in three years of 0.0% COLAs.
Apparently the Social Security office calculates your Cost of Living Allowance using some slighted math. They aren’t properly accounting for inflation and are only looking at certain months out of the year. This seems to be a scheme, in order to lower the amount of money they are providing to recipients.
It should come as no surprise. Big government is very good at taking money from Americans. But when it’s time to dish it out (even to those who deserve it), it is incredibly stingy.
Everything from tax returns, FEMA, Medicare, and Social Security is skimped on.
Now we are learning that they deliberately use a formula that obligates them to very little. The payouts our seniors are receiving are obviously lower than the real cost of living in America.
This is not going to go over well for most Americans.
The only question now is, how are they going to fix this?
Source: Seeking Alpha