The Obama Administration has an answer for the continuing economic slump: more spending. Critics on the right want less spending and more rewards for saving and investment. An excellent example is Social Security. Because there was no inflation last year there will be no cost of living increase for Social Security, which seems straightforward enough. But the Democrats want to provide a $250 check to seniors to compensate for the lack of a cost of living increase. In other words, when inflation goes up, you get a biggest payment. When inflation is flat, you still get a payment. As Debra Saunders explains at The San Francisco Chronicle, this is the pattern.
Meanwhile, our currency is being devalued daily and rewards for savings are shrinking. Senior citizens who watch this development know that their savings are getting negligible returns. How charmed will they be that the Administration's response is yet more spending ($14 billion)--throwing fuel on the inflation fire, as it were?
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