New Report Finds Social Security Cuts Proposed in Obama Budget Will be Devastating to African Americans

The Chained CPI: Increasing Economic Inequality for African AmericansThe Center for Global Policy Solutions released a report that finds President Obama’s proposal to base the Cost of Living Adjustment (COLA) for Social Security, veteran’s benefits and other retirement programs on the chained consumer price index (chained CPI) will widen income and wealth inequality seen among African Americans.

The Chained CPI: Increasing Economic Inequality for African Americans finds that COLA decreases resulting from the chained CPI will disproportionately harm African Americans, who have dramatically fewer sources of wealth to draw upon compared to whites and are, therefore, more heavily reliant on federally-issued benefits. Continue reading

Latinos Say No to “Tweaks” to Social Security That Cut Vital Benefits for Vulnerable Seniors

Leticia Miranda, Senior Policy Advisor, Economic Security Policy, NCLR, writes in a recent blog:

“In the lead-up to yet another manufactured budget crisis, the president has once again put harmful cuts to Social Security on the table.  Back in December, in his failed attempt to entice House Republicans to agree to more taxes, he offered cuts that would cost $112 billion in benefits to people relying on Social Security over the next ten years.  Survey after survey show that Americans don’t support cutting our Social Security system, so why do our leaders keep trying to gut the foundation of retirement security in America?”

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Impact of Proposed Social Security Cut on Blacks and Hispanics, Take 2

Monique Morrissey, Economist at the Economic Policy Institute, published a follow up to her colleague Algernon Austin’s blog on the impact of proposed cut in the Social Security cost-of-living-adjustment (COLA).

“Not only does Social Security represent a greater share of black and Hispanic income, but black and Hispanic beneficiaries tend to be younger than white beneficiaries, with a greater likelihood of receiving disability and survivor benefits (see previously cited tables and this Social Security Administration fact sheet). Disabled beneficiaries and others receiving benefits over long periods face the steepest cuts from the proposed COLA cut. Among retirees, the worst hit will be women across racial and ethnic groups as well as Hispanics, due to longer life expectancies.” Continue reading

A Social Security Cut Could Lead to Higher Latino and Black Elder Poverty

Algernon Austin, Director of the Race, Ethnicity, and the Economy Program at the Economic Policy Institute, recently published a blog on the impact of potential Social Security cuts.
“As my colleagues have shown, the “chained” cost-of-living adjustment for Social Security being discussed between President Obama and House Speaker John Boehner is a cut to benefits. The AARP Public Policy Institute’s report, Social Security: A Key Retirement Income Source for Older Minorities, helps us to think about how this cut might affect different racial groups.”