Let's start with inflation. The CPI-W (Consumer Price Index which includes the categories of Urban Wage Earners and Clerical Workers) is pure fantasy and is the measure used by Social Security to determine Cost of Living Adjustments (COLA). Let me start with some examples.
First of all be aware that you cannot go to the Bureau of Labor Statistics and get much meaningful information by looking at the raw data. There are two reasons for that. One reason is the data is simply incorrect. The second reason is that they manipulated the data they have by assigning weighted adjustments on which area is more important. How do they know? It is pure shenanigans. Here is some data from BLS for 2016 ending in June, 2016.
- ALL ITEMS: + 1.0% BUT when adjustments are made it becomes + 0.4% (0.4% is the rate of increase Social Security participants would receive - COLA).
- FOOD: + 0.3% That is the inflation rate nowhere I have ever been. It is broken down as follows: Food at home (ie: bought at grocery store) - 1.3% (Again nowhere I have been has seen food prices at grocery stores drop), Food Away From Home + 2.6%
- ENERGY: - 9.4% Well it totally depends on where you live. See the following: Energy commodities - 15.3%, Gasoline - 15.4%, Fuel Oil - 19.6% (Depending on where you live you may or may not use fuel oil. Most do not. Rural areas and the NE use it but the Midwest does not - but it is added in to the overall statistics resulting in an inaccurate and skewed large decrease in inflation overall for energy), Electricity - 1.8% (Again, nowhere I have seen have electric bills gone down), Gas piped in -5.0%
- MEDICAL COMMODITIES: + 3.2%
- MEDICAL CARE SERVICES: + 3.8% Mine have gone up over 15% Prescription Drugs + 1.3% - I laughed out loud when I saw this, Professional Services + 2.6%
- EDUCATION: + 0.5% (Pure fantasy number), Tuition + 0.4%, Books and Supplies +1.9%
One of the additional practices that skew the data when calculating the COLA for Social Security is the only data used is the month CPI score from September, 2015 compared with the CPI score in September, 2016. So of the 12 months in the year, two are used for this measure. In July of 2015 the CPI-W was 233.806 and in July, 2016 it is 234.789.
Data from Shadow Stats contradict the US government rate of inflation and as of July, 2016 calculated the inflation rate to be 4.3% not the 0.8% the CPI-W professed. I strongly believe the former is accurate.
The average Social Security recipient receives about $1,180/month (2011) or $14,160/year. If the COLA was calculated as of July, 2016 the average recipient of Social Security would get a COLA of $4.72/month or $56.64/year bringing the average recipient up to a whopping $14,216/year.
The average benefit for people on disability (SSDI) as of 2014 was $1,148/month or $13,776/year. The increase of 0.4% would bring their annual income up to a whopping $14,327.
Shadow Stats lists the inflation rate at 4.3% as of July, 2016 using their 1990 measurement techniques. Lets look at what the difference would be if the US used accurate data to calculate inflation and determine the COLA for social security recipients. The average social security recipient would get an increase of $50.74/month or $608.88/year bringing their annual income to $14, 768/year. This is still nowhere close to wealthy. Those receiving SSDI would receive an increase of $49.36/month or $592.07/year, making their annual income $14,368/year.
The poverty threshold in this country is $24,000/year. Those who retired and are receiving social security are mostly over the poverty level because of other earnings during their working career. However, as a rule people on SSDI have no other income and therefore, those receiving SSDI are almost all under the poverty level.
Next I will take on the unemployment statistics and later wages.
References
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