The government announced today that the tens of millions of Americans who receive monthly social security checks will not benefit from a cost-of-living adjustment in 2011. This marks the first time in roughly 35 years that social security payments have remained stagnant during consecutive years.
White House press secretary Robert Gibbs released the following statement in response to the announcement:
“Many seniors are struggling in the face of the economic downturn, having seen their savings fall. Today’s news that the Social Security Administration will for a second year not provide a cost of living adjustment for social security benefits highlights these struggles. The President will renew his call for a $250 Economic Recovery Payment to our seniors this year, as well as to veterans and people with disabilities. Last year, under the Recovery Act, 56 million people benefited from the first Economic Recovery Payment—including about 50 million Social Security beneficiaries. We’re grateful that Speaker Pelosi has indicated she will bring the new Economic Recovery Payment to a vote and we urge members of Congress on both sides of the aisle to support our seniors, veterans and others with disabilities who depend on these benefits.”
Shortly before the Social Security Administration made the news official, the AARP, the well-known interest group that represents seniors, blasted the decision.
“Millions of older Americans have counted on annual Social Security benefit increases to help them afford their basic needs. Unfortunately, the benefits they’ve earned will again be frozen next year, leaving millions who are struggling in this economy without an increase,” said AARP Executive Vice President Nancy LeaMond in a statement. “On behalf of our members and the millions of Americans who depend on Social Security, we have a message to all elected leaders and congressional candidates: Older Americans need relief, not cuts to Social Security to reduce a deficit it didn’t cause.”
Conversely, the non-partisan Committee for a Responsible Federal Budget praised the freeze.
“This is an issue ripe for political pandering - and there is sure to be plenty of that - but the truth is, seniors don’t need a raise based on inflation this year because inflation has been so low,” said the organization’s president, Maya MacGuineas. “They actually got an artificially high raise last time around so they are faring better than many others in this economy who haven’t benefited from generous raises.”
The Washington Post has more…