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If Social security´s COLA actually works, devaluing the dollar won’t help much —- the liabilities will stay the same in real terms. If it doesn’t, inflation is
by kd5bjo 8y ago
If Social security´s COLA actually works, devaluing the dollar won’t help much —- the liabilities will stay the same in real terms. If it doesn’t, inflation is really just a blunt tool to cut benefits without politicians needing to make a recorded vote on the issue.
- dragonwriter 8y ago> If Social security´s COLA actually works Social security only has a post-retirement COLA, benefits calculation from point of qualified earnings to retirement is wage indexed. While in normal conditions this is more favorable, in a runaway inflation scenario where wages lag, the wage index will be less than a COLA would be, so rapid devaluation actually works write well to reduce SS real obligations, though it had other adverse consequences.