‘Chained COLA’ is the stealth Social Security benefit cut
Social Security’s yearly cost-of living adjustments (COLA) are targeted for reduction through a proposed “chained COLA” formula, and that could be a huge problem for those dependent on Social Security income. “COLA is an invaluable feature of Social Security,” says Merton C. Bernstein, LLB, a nationally recognized expert on Social Security. According to Bernstein, Republican “reformers” propose to reduce COLA claiming that the current method of calculating it overstates inflation. “This unrealistically assumes that people have the opportunity to buy lower priced substitutes when millions of people lack access to markets that offer such choices,” he says.
Social Security more essential than ever, WUSTL expert says
The meltdown of private pension plans, 401(k)s and Individual Retirement Accounts during the recession demonstrates that Social Security is more essential than ever, says Merton C. Bernstein, LLB, the Walter D. Coles Professor Emeritus at Washington University in St. Louis School of Law. Bernstein discussed the crucial role of Social Security in a report for the university’s Weidenbaum Center on the Economy, Government, and Public Policy.
New research reveals surprising lifetime risk of economic insecurity among Americans
Recent economic events have shaken the confidence of many Americans with respect to their ability to achieve the “American dream.” “With rising numbers of home foreclosures, job cuts, and loss of savings, more Americans are encountering severe periods of economic risk and insecurity in their lives,” says Mark R. Rank, Ph.D., poverty expert and professor of social work at Washington University in St. Louis.