Tuesday, July 12, 2011

David John: Fix Social Security’s COLA

The Heritage Foundation's David John argues for calculating Social Security cost-of-living adjustments using the chain weighted Consumer Price Index.

Likewise, I argued over in AEI's Enterprise Blog that a chain weighted version of the CPI for the elderly would produce more accurate COLAs.

1 comment:

WilliamLarsen said...

The problem is not COLA, but that COLA was never part of the 1935 Social Security Act. No one ever factored in that much greater benefit. The 1977 Benefit formula came about because COLA and previous legislatted increaseses since 1950 far exceeded COLA's between 1950 and 1977.

The best thing to do is to Repeal the Social Security Act. Sure it will be tough, but we should not place the entire burden of 74 years worth of a misguided program on the backs of our children.