These lines were not expected to cross for at least another five years. This is the cost of the protracted recession and the failure of the economy to generate new jobs. The 2008-2009 increase in benefits was at a nosebleed level of 9.5%. That level has collapsed to 3.9% in the 2009-2010 period. This is the result of a “0%” COLA increase for 2010. The flip side is that those receiving checks are getting squeezed as their costs rise and income is stable. In the real world COLA is a joke. As this evolves it will just be a drag on consumption and extend the weak economy.
Ugh. The sad thing is, this is all very accurate. On top of our down economy, SS is actually broke now. Its no longer a theory that SS was a horrible ponzi scheme. Its a reality.
