Shrinking Social Security Payments May Herald Economic Turnaround

A recent article in the Sovereign Individual newsletter commented on an Associated Press headline, “Millions face shrinking Social Security payments.” The SI editor went on to say that this news, though misstated, is exactly the news economic prognosticators should want to hear because it heralds the restoration of government fiscal prudence. The contention is that there will be no cost-of-living increases for SSI recipients because the Consumer Price Index is down. The CPI is the indicator to which SSI COLA is tied. This actually means “deflation” not inflation . . . a good sign.