The day after the Social Security Administration announced that there would be no cost of living increase for Social Security recipients, the Obama Administration announced that they were considering a $250 payout for individuals on Social Security, including seniors, disabled individuals and veterans.
The lack of a cost of living increase (COLA) was not a welcome announcement to many, but was justified by the SSA because there was no rise in the consumer price inflation this year. However, given that the economy is still struggling, administration officials want to do “something” to stimulate growth any way they can – hence the idea to do another $250 handout.
Controversy over the proposal includes debate over the $13 billion price tag attached to the plan. Critics contend that a second hand out of $250 for those receiving social security benefits will do more damage to the already enormous deficit, without much to show for it.
Even the New York Times seems torn on the issue, with one article appearing in the Times lambasting the payout plan as a giveaway to the least needy group (seniors, the paper claims, have “fared relatively well” in the recession), while four days earlier an article appeared in the same paper noting that nearly half of people age 65 and up are looking for work but unable to find it, the group’s highest unemployment level since the Great Depression.
With so much controversy and heated rhetoric surrounding this topic, only time will tell what the future holds for Social Security recipients. But for elderly, disabled or veterans who depend on their SS benefits to live, controversy or no any additional money is a good thing.