GOPideas... ideas done right

Instead of finding ways to save money to ameliorate the largest deficits in American history, Democrats are inventing ways to give away more money --- in fact, they are circumventing budgetary rules for the exact reason those rules were established. This week, the Social Security Administration released the news that since price levels in the US had decreased by 2.1% over the past year, recipients of Social Security would not receive cost of living adjustments (COLAs) in 2010. Immediately, the President and many Congressional Democrats decided that not giving more money away to cover costs that do not exist was an undue burden on American seniors and immediately began to craft legislation to give addition money to seniors, because, well, they wanted to.

Other than spending the money of tomorrow's taxpayers on today's taxtakers (with a lot of interest thrown in because it’s all deficit spending), Congressional Democrats are abrogating the entire rationale for a COLA. A bit of history: COLAs were established in 1975 after upward adjustments of Social Security payments of 10-30% annually between 1970-1972. The basis of these huge upward adjustments was a legislative arms race between politicians --- each trying to prove that they "cared" more for seniors (read: care = spend money). Thus, Congress passed a "stop me before I spend again" law, in which the annual increase was to be based on a basket of goods, not Congressional preference. So, if the aggregate price of that basket of good rose 2%, Social Security payments would increase 2% --- regardless of how much Congressional leaders wanted to spend.

This year, due to falling food and gas prices, the overall cost for these goods decreased 2.1% (meaning that payments should have dropped by 2.1%) but since payments cannot decrease, a 0% COLA. Yet, Democrats are beginning to invent reasons why they should vote to give away money to Social Security recipients anyway (note, none objected when COLAs were the highest in decades, 5.8%, last year). Thus, Democrats are returning to the rationale and logic that led to the creation of the COLA system: to ensure that politicians do not vote money to special interests to curry political favor. Republicans should not object to ensuring seniors do not end up in poverty, but when staying out of poverty costs less, then we should not spend more.