Social security is often mislabeled as an entitlement. Sure, it is something that seniors are entitled to, but only as compensation for hard work they put in in the past. Many costs have recently increased for our population. With these rising costs known as inflation, many ask should congress increase the size Of social security payments?
The phenomena of rising costs are known as inflation. Inflation can fluctuate widely, but overall inflation, or the destruction of the value of money, occurs namely as governments produce more money over a length of time. A destruction of the purchasing power of a dollar is the result. This harms seniors collecting social security as the amount received in payment over time will stay the same, but the costs that the senior has to bear increase, thus harming his or her ability to procure the goods needed.
Inflation is battled by raising the payments that seniors receive. The question is not whether congress should increase the size of social security payments, but by what rate. Rising costs harm purchasing power because of inflation. As such, the rate paid to seniors is raised based upon a basket of product prices.
Social security payments are increased by the COLA rate. This is a measure of inflation that measures costs, but leaves out some key components such as energy and housing prices. The thought is that these are too variable and may distort the rate ultimately paid for social security. But as energy and housing make up the majority of costs, it may lead to the social security payment changes not increasing in accordance with current prices of goods. Congress already increases the size of social security payments. However, a modification of the payment amount may lead to a more equitable society.