Tuesday, August 25, 2009

Senior Will See Their Social Security Checks Dwindle

You have to listen very closely to Obama and what he says. I can remember in his campaign Obama said that will be a champion for the senior citizen. Well, of course (sarcasm)! These groups of people are considered the swing voters that helped him win the presidency. But alas, from the first day Obama stepped into office, he started to break his promises he laid out during his presidential campaign.

Obama said that senior will not see a decrease in their Social Security checks. Again, of course not! By law, Social Security benefits cannot go down. In fact, since 1975, there has been a built in automatic increase based on cost of living. But alas, Obama foolhardy arrogance got the better of him.

For the first time in generations, millions of senior citizen will be seeing a shrinking of their Social Security checks for next the next couple of years. It seems because of this economic turmoil and largely because energy price are below 2008 levels, there won’t be that cost of living adjustment that millions of seniors are counting on.

Because many are in the Medicare prescription drug program, those who choose to get their premiums deducted from their Social Security will see their checks dwindle. This is so true when the premiums for the Medicare prescription drug program will be scheduled to go up slightly next year.

This will be a real inconvenience for many seniors when they face higher cost for healthcare, declining home prices, and shrinking retirement portfolios.

Obama says he will tackle Social Security next year after trying to muster passage of his Universal Healthcare and “Cap and Trade”. Well, the president better do it real soon because this recession has brought in less tax revenue to cover Social Security. In fact, the program will be paying out more money than it receives by 2016. If Obama ignores this crisis, Social Security will go bust by 2037.

Ah, yes, the word crisis is something the Obama Administration cherishes. Remember, the motto in the White House, “Never let a good crisis go to waste.”

That’s the change you can count on.