The cost-of-living adjustment for Social Security will be adjusted by 5.9% for 2022. This reflects the revert accelerating levels of inflation within the United States, announced the Social Security Administration this past Wednesday.
Each and every year, the Social Security Administration adjusts its payouts in order to reflect the adjustments in the price levels across the country. The current increase of 5.9% for 2022 is the highest we have seen in over forty years and happens in the wake of the year-over-year inflation within the United States skyrocketing to 5.4%.
As explained by the Social Security Administration, the increase in the rate will affect just over 64 million Social Security recipients and over 8 million Supplemental Security Income beneficiaries.
This change is similar to the ones seen during the early administration of President Jimmy Carter, which was 5.9% in 1977 and 6.5% in 1978. After climbing up to 9.9% in 1979 and 14.3% in 1980, the adjustments started to decline after President Ronald Reagan and Federal Reserve Chairman Paul Volcker took measures to help flatten the curve and stabilize the inflation rate.
Social Security, which as a whole forces people currently working to fund the incomes of people who have already retired through payroll taxes, is bogged down with solvency issues. As of now, unless changes are made by Congress to either raise taxes or cut benefits, the whole program’s trust fund is slated to run completely out by as easily as 2034. As stated by the Committee for a Responsible Budget, the most recent adjustment to benefits may “deplete the program’s trust fund a year earlier than projected.”
Looking past the current state of rising inflation, the increased payouts from social security have very telling implications about the way the federal government displays its spending habits.
Currently, Democrats are trying to push through a $3.5 trillion reconciliation bill that Frankensteins together aspects of Old Uncle Joe’s American Jobs Plan and American Families Plan, which is seen as a move that would only increase the role of the federal government in its social welfare spending. Sen. Rand Paul (R-KY), alongside many other conservative legislators, has raised concerns that these expenses will throw the national debt well above the $30 trillion level.
“People are saying we’re going to give you free college, free cars, free cell phones, free this, free that,” Paul stated recently while on the Senate floor. “Everything in life will be free; you won’t have to work anymore. The problem is there are ramifications. Money doesn’t grow on trees; money’s got to come from somewhere.”
“We are spending money right and left. The Right spends it on military adventure, the Left spends it on welfare. The compromise that always happens around here is that Right comes together with Left and they all agree to … spend it on both.”