Question

Should social security and other government benefits continue to be tied to a C.O.LA?

Answer 1

Social Security and other government programs that are aimed at helping the poor, elderly and disabled, should continued to be tied with cost of living adjustment. Note that the same is done to prevent their purchasing power which is reduced and which might erode the value of money. Inflation reduces the purchasing power of money and it hurts a section of society that has now no source of income except social security. C.O.L.A process helps them mitigating the effect of inflation on consumption hence, it should be continued.