Seniors Lose 40% of Buying Power Since 2000

[Omaha Steve]

http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/09-26-2007/0004670337&EDATE=

Costs for Seniors Rising Three Times Faster Than Annual Social Security Cost of Living Adjustment (COLA)
WASHINGTON, Sept. 26 /PRNewswire-USNewswire/ -- Seniors have lost 40 percent of their buying power since the beginning of the decade, according to a new study released today by The Senior Citizens League, one of the nation's largest nonpartisan seniors groups.

Each year, seniors receive a small increase in their Social Security checks, intended to help them keep up with the costs of inflation. But since 2000, the Social Security Cost of Living Adjustment (COLA) has increased average benefits just 22 percent while typical senior expenses have risen by 71 percent, more than three times as fast.

A senior with the average Social Security benefit in 2000 received $816 per month, a figure that rose to $999.80 by 2007. However, that senior would require a Social Security benefit of $1,397 per month in 2007 just to maintain his or her 2000 lifestyle.

The study examined the increase in costs of eight key items between 2000 and 2007. The items were chosen because they are emblematic of the costs seniors must bear. Six of the eight costs exceeded the COLA - and three jumped by triple digits. The selected items represent five categories, weighted by approximate expenditure: food, housing, medical costs, transportation, and recreation.

Category Expense Cost in Cost in 2000 2007 Percent Increase, 2000-2007 Food 10 lbs. potatoes $2.98 $4.37 46.6% Food 1 lb. butter $1.79 $2.48 38.55% Housing Real estate tax (national avg.) N/A N/A 12.7% Housing Heating oil (gallon) $1.09 $2.32 112.84% Medical Medicare Part B monthly premiums $45.50 $93.50 105.49% Medical Brand drugs N/A N/A 54% Transportation Gasoline (gallon) $1.20 $2.77 130.83% Recreation Movie ticket $5.39 $6.55 21.52%

"For years, we've been sounding the alarm bell that America's seniors are falling further and further behind, but even we didn't realize the situation was quite this stark," said Daniel O'Connell, Chairman of The Senior Citizens League. "If our annual Social Security increases don't keep up with inflation as they're intended to, how are we supposed to keep up with the rising costs of everything from prescription drugs to home heating to groceries?"

FULL story at link. I'm sorry the table won't display right here.

[Jackpine Radical]

1. This is ridiculous. Seniors are making out like bandits.

All they need is a little creativity. First, they can switch from cat food to dog food, which is cheaper and just as nutritious. Second, they don't need to be cluttering up the roads driving anywhere, so gas prices are irrelevant. Third, they don't really need housing or heat. Cardboard boxes are still free out behind WalMart. Movies? Why can't they just watch the sunset, as long as they're going to be living outside anyway. And all those medications do nothing but prolong their miserable lives so they can continue to be a drain on the rest of the system. See? It's all so simple if you just look at it right.

[terisan]

2. Touche ! Living in Bush Country is hell. Meanwhile Babs Bush keeps her pool at 84 degrees.

[Mend]

3. you forgot to add the Soylent Green solution....become kibble for the youngsters.

[Jackpine Radical]

4. That's a wonderful point, especially so since all those geezers

are toxic as hell, what with all the DDT, PCBs and whatnot they have stored in their body fat. If we feed them to the young proles, then all the young proles will expire of cancer before they themselves hit senior status--so this Social Security thing really becomes a self-limiting problem.

[Mend]

5. and of course the young proles will become infertile from the toxins...voila

no more Medical Care for Children Act and No Child Left Behind becomes No Child at All. Oh the money and food and medicine we will save.

[Jackpine Radical]

6. O God, the brilliance of it!

The Corporatists need us! I don't think we should be throwing out these amazing ideas like this until they start paying. Paying BIG money. We've given hem a sample of what we have to offer, but no more freebies. Agreed?

[Mend]

10. a hint only: wonderful new "Soy-Nu will end school failure" (it will end schools

but they don't have to know that yet...big money to us first).

[Jackpine Radical]

11. Oh, I LIKE it.

And the thought occurs to me--we can also get rid of lead testing in the water system. Just track exposure levels by declines in mean IQ.

[Mend]

13. and then recycle those affected as paint....but I say too much....big money

in a variety of natural colors.

[Jackpine Radical]

15. ...thereby completing the loop. From paint to paint.

Recycling--Who says the Right Wing doesn't understand environmentalism?

[Mike03]

7. Imagine when the Baby Boomers retire

This problem is going to magnified tenfold. The health care costs, the financial needs, the lack of savings... The accumulative effect of easy money is going to inflict torture on generations born after 1960. It's a very bad time ahead.

[Jonathan Pollard]

8. Inflation figures probably are understated

I wouldn't be surprised if the inflation figures that the government releases are deliberately falsified in order to not make the Bush regime look too bad.

[Jackpine Radical]

12. Not only for propaganda, but for the savings

when they don't have to increase payments for all those things (e.g. SocSec) indexed to inflation.

[MetalCanuck]

9. This is what happens on a NON gold standard.

Government is allowed to borrow and inflate the dollar through central banks. Here is a GREAT video that will explain the robbery and why things go up in price all the time.

http://video.google.com/videoplay?docid=-9050474362583451279

[amandabeech]

14. So who really needs that $5,000?

My mom really notices it. She's doing okay, but lots aren't.