COLA Wars

Hundred dollar car note
Two hundred rent
A get a check on Friday
But it's already spent
--Huey Lewis & the News

The Social Security Administration has announced that recipients will receive a 5.9% increase in benefits in 2022. This cost of living adjustment (COLA) amounts to the largest annual increase in almost 40 years.

One reason why government measures of price inflation are absurdly manipulated (i.e., under-reported) is to minimize payouts that are subject to COLAs. If price changes were measured accurately, then the government would be on the hook for $trillions more in COLA payments.

The large benefit increase demonstrates that this administration is having a hard time keeping the lid on the low or 'transitory' inflation narrative. It knows that if it tried to tell millions of retirees that cost of living is not as high as they think it is, then it would be one more reason to vote leftists out of office.

By increasing the COLA to retirees, Democrats hope to buy votes or, more accurately, to bribe voters.