NEW YORK (CNNMoney.com) - There will be no cost-of-living increase for 57 million Social Security beneficiaries next year because consumer prices have fallen, the Social Security Administration announced on Thursday.
It marks the first time that Social Security benefits have not been increased year over year since the cost-of-living adjustment was put into
effect in 1975.
To help counterbalance the hit, President Obama is calling on Congress to send another $250 relief payment to seniors and other Americans to stem the economic strain.
"Even as we seek to bring about recovery, we must act on behalf of those hardest hit by this recession," Obama said in a statement Wednesday. "That is why I am announcing my support for an additional $250 in emergency recovery assistance to seniors, veterans, and people with disabilities to help them make it through these difficult times."
Last year, Social Security beneficiaries got a 5.8% cost-of-living adjustment, the largest since 1982, largely because of the spike in energy prices.
"This year, in light of the human need, we need to support President Obama's call for us to make another $250 recovery payment for 57 million Americans," said Commissioner of Social Security Michael J. Astrue in a written statement.
What else is cookin' or brewin'? We all can claim we kinda knew that at least as an umbrage.
This is the same thing as a new tax. Thanks Barack.
No increase for those on social security but the congress can vote themselves bigger office budgets to get the lies out and also voted themselves hefty pay raises. Time for change and this time the change needs to be for the right reasons. GET RID OF THE BUMS including those in the White House.
Give the seniors a break.
now if i can figure what to do with an extra $5 a week!!
Thats fine. No need for one. Prices went down this year, not up.
Here is a classic good cop, back cop routine. Congress says no to any increase and Obama arrives on the scene and says we will give some money out of the stimulus money (our tax dollars) to help create the illusion that the stimulus money is actually working. Is this some kind of shell game?
There you go grandma...buy yourself something pretty... thanks to Obama.
"Last year, Social Security beneficiaries got a 5.8% cost-of-living adjustment, the largest since 1982, largely because of the spike in energy prices."
Wait and see what Cap-And-Trade does to the cost of living.
Grandma’s SS check will go up 75%!
So Obama is going to add 12 billion to the debt and give seniors 250 in the mail. Obama, call Art Laffer, who rescued the damage from your first presidency (jimmy carter). He helped make america prosper again.
The cost of living supposedly declined. I, personally, had a salary cut. I applaud President Obama's effort to give seniors a small payment to offset any hardship this may cause. BUT...people cannot complain about this. Asking for an increase when everyone else either has a salary freeze, had taken furlough days or has been laid off is just plain selfish.
No raise, but Obama wants to hand out a measley $250 per senior and borrow the money to do it. Heck it will only cost the tax payers 13 billion to pay it back. Gotta love it, our money is no expense to the tax and spend Liberals.
A triple blow to the elderly. No social security increases. Healthcare rationing and medicare reductions.
Obama / Pelosi / Reid / Dodd / Rangel / Frank / Baucus / Kerry
Enter GOPers and "anti-entitlement" people, stage right, yelling and screaming about how this is somehow Obama's fault.
Irony 1,000,162: GOP 0
Every time I go to the grocery store, prices have once again been raised or the item repackaged into a smaller package and then the price is raised! Where do they get off say prices have fallen? My rent was raised $50 in June!
Let's see. We have no SS increase this year because the "cost of living" has dropped. (Someone please tell me where my bills have dropped???).
Then we give seniors a payoff because of the pain (i.e. cost of living has increased). Which is it? Fuzzy political arithmetic at work here...
Take away 500 BILLION from the seniors and in turn send the $250 to make up for it, the "audacity of this dope" is brutal.
The seniors and vets like myself that have EARNED ASSISTANCE are being brushed aside for illegals, yep, they WILL be covered, you betcha.
One and done.
Good. I work and didn't get a salary increase this year so why should senior citizens get an increse for doing nothing?
Due to the social security benefit increases of the past have more than off set the cost of my Medicare Part B and I'm very pleased with that, because without it I couldn't afford Part B. With that said I'm OK with just getting a $250 relief payment.
The wingnuts want to do away social programs all together. But I am sure we will get some faux outrage from those anti Americans.
Oh no ... the Boomers are going to blow their gaskets over this ... lol
What kind of a joke is this administration?
Here's an idea: If they need the money so bad, don't cut their cost of living increase. This seems like an obvious political game. SOS takes the money away, and BO swoops in to give some of it back to them. I hope people realize that both these cuts and give-backs are both coming from the same place.
Times being hard as they are i think they needed that increase. I think he needs to rethink this one.
There's sure to be a lot of crying about this, but with employers cutting worker pay & hours, the gov is taking in less $.
Insurance companies have already raised deductibles and costs of medicines for the seniors! President Obama is a visionary – he thinks of everyone – no one is left out. Now if only the ignorant would let him continue to do the job we elected him to do!