Wednesday, April 8, 2015

Raise existing SS benefits during a deflation?

The existing SS benefits get an automatic raise during a deflation, G does not do negative inflation adjustments. Now we have to nuthead Senators unable to count below zero! How do they get elected?
AEI: Social Security has a long-term funding gap that just keeps growing. Neither political party has a plan to pay for the promises we’ve already made to people contributing to the system. But Democrats are bringing a new idea to the table: make even more promises.
Almost all Senate Democrats have lined up behind a proposal by Elizabeth Warren of Massachusetts and Joe Manchin of West Virginia to expand benefits for current retirees. Liberals are exulting that Warren has shifted the politics of Social Security to the left: Where once we were debating cutbacks to the program, now we’re debating benefit increases. Too bad that also means the debate is shifting further away from fiscal reality.

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