The US government announced on October 14th, 2020 that Social Security checks for all US seniors will rise by 5.8% in 2022, the largest increase since 2008. This cost of living adjustment (COLA) is based on the Consumer Price Index measure of inflation in 2021. a). Show with a graph and a model how, in theory, giving seniors the full 5.8% increase will actually make a representative senior better off in 2022 as compared to 2021. If lifespan projections are roughly correct, it is expected that our 52 million current seniors over age 65 is expected to rise by 60% over the next 25 years to about 80 million seniors. Medicaid, Medicare and Social Security are currently 12% of GDP, but expected to rise to 17% of GDP by year 2044. b). Could this enormous increase in spending on seniors have an effect on either US market efficiency or productivity in as we move toward the year 2044?
The US government announced on October 14th, 2020 that Social Security checks for all US seniors will
rise by 5.8% in 2022, the largest increase since 2008. This cost of living adjustment (COLA) is based on
the
a). Show with a graph and a model how, in theory, giving seniors the full 5.8% increase will actually
make a representative senior better off in 2022 as compared to 2021.
If lifespan projections are roughly correct, it is expected that our 52 million current seniors over age 65 is
expected to rise by 60% over the next 25 years to about 80 million seniors. Medicaid, Medicare and
Social Security are currently 12% of
b). Could this enormous increase in spending on seniors have an effect on either US
productivity in as we move toward the year 2044?
The consumer price index is termed as the tool to measure the average change in price that consumers pay for the utilized goods and services. The Consumer Price Index for All Urban Consumers rose 5.3 percent for the 12 months ending August 2021, a smaller increase than the 5.4-percent rise for the year ending July. Prices for all items less food and energy rose 4.0 percent over the last 12 months, also a smaller increase than the year ending July.
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