Tag: Social Security COLA
Shifting to CPI-E for retirees would involve a lot of pain for not much gain. This fall, Social Security is likely to announce a 6-percent cost-of-living adjustment (COLA) for 2022. Such a large COLA – the biggest in 40 years (see Figure 1) – is likely to reignite the debate over whether the government is…
A modest increase reignites the debate over the appropriate price index. How best to keep Social Security benefits up to date with inflation has been a controversial issue. Critics have argued for decades that the CPI-W understates the inflation of the elderly because it does not reflect how large a share of their budget goes…
