C-o-l-a cola.

So it turns out Obama is proposing that we spend an additional 13 billion this year to give seniors the bonus they won't be receiving through COLA. Since the cost of living didn't increase for the first time in 40 some years social security recipients will not have their benefits increased. A professor of mine lashed out at the policy decesion today citing that it was a waste of money, if the cost of living did not increase why would recipients need more money.

I tend to go along with the Administration on this one. Besides the fact that this gets the AARP off Obama's back and decreases a little pressure from seniors over the proposed medicare cuts, we still have to remember we're recovering from a recession. 401ks are still in the gutter, and recipients are bound to spend this money on the essentials. I doub't most will be saving it for a rainy day, considering its been raining for the last 12 months. If anything this is a stealthy stimulus that can gain support from both sides of the aisle.

TLH