Bloomberg.com is reporting on that Obama has backed off any support for changing the formula used to calculate the Social Security COLA.
I won’t get into that issue again, you can search it on this blog if you want to see the debate.
However, I found the closing paragraph in the Bloomberg article interesting.
Of course taking money from one pocket and putting it in another pocket doesn’t solve problems. But guess what, that is exactly what Obamacare is doing. The ACA is making health care “affordable” by and only by shifting costs from one group to another. Find me a way to truly lower costs by any way except to take money from someone’s pocket.
In addition, don’t we try to solve every social problem by taking money from taxpayer pockets and giving it to someone else?
Of course, the Social Security COLA thing is ludicrous. Giving someone a little less of more is not taking from anyone. Rather we should simply let the Social Security system continue to deteriorate? Or should we just keep raising taxes on working Americans?
Based on comments received here, seniors collecting SS don’t care about the solvency of the system, their children or grandchildren but just about the benefits they earned , paid for and are entitled to receive.
Two things to note: One, Obama was never a big fan of chained CPI. He expressed openness to the idea last year as part of a grand budget compromise with Congress. He has since lost faith that such a deal can be struck. Two, taking money out of one pocket and putting it into another won’t solve America’s serious long-term financial problems. For that, the only answer is reforms that truly lower costs and raise the economy’s
wealth-producing capacity. Bloomberg.com