No relief checks for seniors

Proposal by President Obama to give seniors a $250 check is hard to justify.

Americans over 60 have the highest net worth of any age group in the nation. So, why is President Obama singling them out for a special shot of economic stimulus?

With the fizzling economy, the cost of living declined by 4 percent last year. In some respects that is bad news; it reflects falling prices in a number of areas because of decreased demand, oversupply and the move on the part of consumers to quit spending and increase savings.

But for those on a fixed income — including many of America's 57 million retirees — a decline the cost of living should be a good thing. Basically, it means that they will be able to maintain their current quality of life at a lower cost.

Since 1975, Social Security payments have been subject to an annual cost-of-living adjustment, or COLA. And for every year hence, retirees have received an increase in their monthly Social Security checks commensurate with the rise in the cost of living. Last year, for example, they received a 5.8 percent COLA, the largest since 1982, primarily because of the increase in energy prices.

But not this year. With a drop in the cost of living, beneficiaries will receive no cost-of-living increase.

That should be the end of discussion. That is how the system works: When the cost of living increases, seniors get a raise; when it doesn't, they don't.

But President Obama now is calling on Congress to send a check for $250 to seniors, veterans and people with disabilities as a “relief payment” to help them through difficult times. The measure would cost $13 billion over 10 years, and the money would not come from the payroll taxes collected to pay for Social Security.

This makes no sense — unless, of course, it is meant simply to mollify a group of voters who are more likely than voters in other age groups to go to the polls on a regular basis.

We agree that these are difficult times and many people could use some relief. But seniors are no harder hit, as a group, than other age groups. In fact, they might be better insulated against a downturn than many, including many families with children to support.

Many seniors no doubt have a hard time getting by under any economic circumstances, but so do millions of other Americans. But this year, because of the decline in the cost of living, the buying power of the averge senior on a fixed income will increase by hundreds of dollars.

Why should that entitle them to a $250 handout?