$250 Payments to Make Up for No Increase in Social Security

Obama called congress to approve $250 payments to over 50 million senior citizens on Wednesday. The reason these payments were created was to make up for no increase in Social Security next year. This would become the first year without an increase in Social Security since 1975. Because of the current economic state the prices of gas and energy have dropped 30%. Statistics show the average monthly Social Security payment for retirees is $1,160. Now how is $250 going to make a significant change? Maybe the increase that would have been applied was a small amount, thus the sum of the differences being $250.

"Even as we seek to bring about recovery, we must act on behalf of those hardest hit by this recession," Obama said in a statement. I totally agree, thought we have have been effected by the economy one way or another many including the disabled and senior citizens have found most difficulty. The total of the bill would cost $13 billion. Obama did not allow this money to come out of the Social Security trust fund, defeating the whole purpose of the bill. Though he did not offer any alternatives, one of his senior administrator suggested to borrow the money, increasing the federal budget deficit. Another great way to add debt to the country, but in order to get out of debt we must spend money. These payments would be limited to one per person.

Obama also announced Wednesday that the IRS would soon issue tax guidance preventing reductions in contribution limits for certain retirement funds, like Individual Retirement Accounts. Many people have agreed and disagreed with Obama's move. Some believe it is important to care for our seniors, while others see if unnecessary, since Social Security payments have increased by 5.8% in January, due to the spike in energy costs in 2008. Barbara B. Kennelly, a former Democratic member of Congress from Connecticut who now heads the National Committee to PreserveSocial Security and Medicare said, "The likelihood of losing an average annual COLA increase of about $200 to $300 in 2010 may sound like no big deal to some, but for millions of seniors who've already seen a third of their Social Security eaten up byhealth care costs, this proposed COLA relief could truly make the difference". That is true if an average payment is around $1200. A third is $400, now this $250 is about 63% of that payment. Many it is small through the eyes of many, including me, but like to us how a quarter holds a decent value, this small payment should aid those in need.