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Economy

Social Security Administration Announces 5.9% Benefits Increase for 2022 Amid Rising Inflation

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social security

On Wednesday the Social Security Administration announced some 70 million beneficiaries will be receiving a 5.9% increase in benefit checks beginning late December and January. The move is the “biggest cost-of-living adjustment (COLA) in 39 years” following “a burst in inflation as the economy struggles to shake off the drag of the coronavirus pandemic” reports the Associated Press.

Estimates released Wednesday suggest a roughly $92 per month increase for the average retired worker. “That marks an abrupt break from the long lull in inflation that saw cost-of-living adjustments averaging just 1.65% a year over the past 10 years,” writes the AP.

With the changes, an average Social Security payment could be around $1,657 per month, and a couple’s benefits could rise to $2,753 per month. The AP reports “the COLA affects household budgets for about 1 in 5 Americans. That includes Social Security recipients, disabled veterans and federal retirees, nearly 70 million people in all. For baby boomers who embarked on retirement within the past 15 years, it will be the biggest increase they’ve seen.”

However, the Washington Post reports that experts say millions of beneficiaries will see “much less” than a 6 percent increase due to Medicare Part B premiums, which are deducted from beneficiaries checks and tied to seniors’ income.

Roughly 64 million of those affected are Social Security beneficiaries, while 8 million are Supplemental Security Income beneficiaries and “some Americans receive both.” The increase is the “biggest since 1982 as the Social Security benefit increase has averaged about 1.7 percent over the last 10 years” writes National Review.

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4 Comments

4 Comments

  1. Bob wigley

    October 13, 2021 at 2:20 pm

    Medicare will jump up 7%
    We will get lost no doubt in my mind

  2. Cam Meder

    October 14, 2021 at 12:20 pm

    Please explain to me why the few and far between raises SS gets, medicare premiums are ALWAYS increased? I am on SSID, why does mine go up every time as well?

  3. Bly Haugen

    October 15, 2021 at 10:43 am

    When M. D. is 7% don’t you think inflation is a lot higher?

  4. Slideglide

    October 15, 2021 at 11:37 am

    🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸♥️♥️♥️🌎🌎🌎🌎🍓🍓🍓🤪🤪🤪

    The Democrat Party, including the MSM have embraced Marxist ideology in order establish a permanent, central planning, government.

    A huge part of Marxism is to control the narrative through propaganda, and their messages are used to bride potential voters with payouts and deceptive benefit packages.

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Economy

Atlanta Fed’s GDP Tracker Shows United States May Be In A Recession

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Joe Biden

The United States has likely entered a recession, according to the Federal Reserve’s key gauge for measuring economic activity.

The Atlanta Fed’s GDPNow measure, which tracks economic data in real time and continuously adjusts projections, says that the United States economy will shrink by 2.1% in the second quarter. A 2.1% contraction in the second quarter paired with the first quarter’s decline of 1.6% would meet the definition of a recession.

“GDPNow has a strong track record, and the closer we get to July 28th’s release [of the initial Q2 GDP estimate] the more accurate it becomes,” wrote Nicholas Colas, co-founder of DataTrek Research.

The tracker fell dramatically last week from an estimate of 0.3% after data “showing further weakness in consumer spending and inflation-adjusted domestic investment prompted the cut that put the April-through-June period into negative territory,” CNBC reported.

“One big change in the quarter has been rising interest rates,” CNBC added. “In an effort to curb surging inflation, the Fed has jacked up its benchmark borrowing rate by 1.5 percentage points since March, with more increases likely to come through the remainder of the year and perhaps into 2023.”

Last week, Federal Reserve Chairman Jerome Powell warned that the decision to fight inflation by increasing interest rates was “highly likely” to cause pain to Americans.

During the European Central Bank forum, host Francine Laqua asked Powell, “If you’re speaking out to the American people to try and help them understand how long it will take for, you know, monetary policy to go back to something that resembles normalcy … what would you tell them?”

“I would say that we fully understand and appreciate … the pain people are going through dealing with higher inflation, that we have the tools to address that and the resolve to use them, and that we are committed to and will succeed in getting inflation down to two percent,” Powell responded.

“The process is likely, highly likely to involve some pain, but the worst pain would be from failing to address this high inflation and allowing it to become persistent,” he added.

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Economy

Biden’s Fed Chairman: Solving Inflation ‘Highly Likely To Involve Some Pain’ For Americans

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On Wednesday, Federal Reserve Chairman Jerome Powell said that solving the inflation crisis is “highly likely” to cause pain to Americans but that it would be less painful than not addressing inflation.

During the European Central Bank forum, host Francine Laqua asked Powell, “If you’re speaking out to the American people to try and help them understand how long it will take for, you know, monetary policy to go back to something that resembles normalcy … what would you tell them?

“I would say that we fully understand and appreciate … the pain people are going through dealing with higher inflation, that we have the tools to address that and the resolve to use them, and that we are committed to and will succeed in getting inflation down to two percent,” he responded.

“The process is likely, highly likely to involve some pain, but the worst pain would be from failing to address this high inflation and allowing it to become persistent,” Powell added.

Powell’s comments come as inflation has reached the highest rate in more than 40 years with prices rising 8.6% from May 2021 to May 2022, according to a new report from the Bureau of Labor Statistics.

In order to bring down inflation, the Federal Reserve increased the interest rate by 0.75% earlier this month – the highest increase since 1994 – and warned of additional increases in the interest rate in the future.

“The three-quarter-point hike brings the federal funds rate to between 1.5% and 1.75%. The federal funds rate dictates what it costs for banks to borrow money from each other. And, generally, higher interest rates mean it’s more expensive for consumers to get a mortgage, obtain a loan to buy a vehicle and to carry a balance on a credit card,” NBC News reported. “The expected effect of these changes is that consumers will spend less and the heightened demand for goods — one of the drivers of inflation — will slow down.”

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