Grumpy Editor

DESPITE MONTHLY PAY HIKE, MORE SENIORS FACING HARD TIMES

 

While seniors receiving Social Security will see monthly payments rise 2.8 percent, or an average of $40 a month starting in January, the number of older Americans filing for bankruptcy has increased, notes Grumpy Editor.

 

Most media, focused on other events (mainly out of Washington) have overlooked this situation.

 

Risks associated with aging include less income --- sometimes attributed to vanishing pensions --- increased health care costs and higher charges for goods and services.

 

A Consumer Bankruptcy Project study finds the rate at which Americans 65 and older are filing for bankruptcy has increased two-fold since 2013.

 

While more than 12 percent of bankruptcy filers are now seniors, only about 2 percent were in that category in 1991.

Meanwhile, nearly half of middle-class Americans now face a slide into poverty as they enter retirement, concludes a study by Schwartz Center for Economic Policy Analysis, New York.

The think tank says it is being driven by depressed earnings, lower asset values and increased health-care costs teaming to cause 74 percent in that category to plan on working past traditional retirement age. 

 

 

IN CASE YOUR FAVORITE NEWS OUTLETS MISSED THESE…

 

 

ARMY VET, 99, TOURS STATES.  With self-financing, Sidney Walton, a 99-year-old World War II Army veteran, is embarked on a 50-state excursion dubbed the No Regrets Tour.  He is making himself available to meet with anyone wishing for a last-chance encounter with one of the dwindling number of World War II veterans.  Last week Walton and his 62-year-old son, Paul, flew from Alaska to Hawaii, 14th state in the tour after visiting Rhode Island, Massachusetts, Maine, Connecticut, New York, New Jersey, Indiana, Nebraska, Tennessee, Kentucky, Illinois, Florida and Alaska. Paul tells Stars & Stripes choice of each next destination is dictated by the cheapest flight available. Walton is slated to meet with President Donald Trump when he turns 100 on Feb. 11.

 

COLLEGE-EDUCATED NEWSROOM EARNS LESS.  Pew Research Center reveals  college-educated newsroom employees make less than college-educated workers in other industries and occupations. The median earnings of newsroom employees with a college degree are about $51,000, compared with about $59,000 for all other college-educated workers.

 

TESLA SALES BEAT MERCEDES-BENZ.  Tesla outsells Mercedes-Benz during the third quarter in the U.S. and could outsell BMW in the current quarter, stemming from Tesla’s Model 3 attracting more customers.

 

SCRAMBLED JETS AVOID HURRICANE MICHAEL.  While Tyndall Air Force Base, Panama City, sustains major damage when Hurricane Michael roared into Florida, the government saves billions of dollars by the commander scrambling the bases's 50 high-tech F-22 fighter jets and sending them to other locations.

 

WWII SAILOR VISITS FORMER SHIP.  Earl Laber, who turns 93 today as one of the last 10 surviving World War II crew members of a Navy ship that is the last of its kind still afloat, visited the USS Slater Friday at its Hudson River dock.  His three sons join him for the tour aboard the ship, now a floating museum docked at the Port of Albany since 1997. 

 

ENVIRONMENTAL WARNING.  Governments' plans for dealing with climate change are inadequate, according to a report from the U.N.'s Intergovernmental Panel on Climate Change. The IPCC says major cities and entire countries will be flooded unless countries work to limit global warming to "well below" two degrees Celsius, or 3.6 degrees Fahrenheit. 

 

WALMART GETS INTO VIDEO.  Vudu, Walmart's video-on-demand service, makes a deal with MGM to create original series based on the movie studio's film and TV catalog. 

 

NETFLIX TO PRODUCE IN N.M.  Netflix plans to open a film and production center in New Mexico, planning to bring $1 billion in production to the state over the next decade while creating up to 1,000 production jobs a year.

 

AIR FORCE FIGHTERS GROUNDED.  A fighter jet crash last month in South Carolina leads to a temporary pause in all F-35 flights.  That affects 250 U.S.-owned jets plus nearly 100 that belong to other nations including Israel and Great Britain.

Social Security COLA for 2019: Likely between 2.8 and 3 percent

Look for a 2019 Social Security cost of living adjustment (COLA) to be between 2.8 and 3 percent, calculates Grumpy Editor.  

That compares with 2 percent for 2018.

The official tally will be released Oct.11.

A big question is:  Will there be a boost in Medicare Part B premiums, as in 2018, that bites into a COLA increase. Part B covers doctors' visits and outpatient services.

 

Seniors faced with higher costs in vital areas such as health care, utilities, car insurance, groceries and travel will welcome a boost.

 

The Bureau of Labor Statistics averages consumer price indexes from July, August and September to determine next year’s COLA for Social Security and Supplemental Security Income recipients.

 

 

IN CASE YOUR FAVORITE NEWS OUTLETS MISSED THESE...

 

GOOD ECONOMIC NEWS GETS SCANT COVERAGE.   The consumer confidence index reaches an 18-year high, climbing to 138.4 in September from 134.7 in August.  That’s the highest since September, 2000.  Meanwhile, U.S. economy racks up the best performance in nearly four years, with gross domestic product (GDP) growing at a robust annual rate of 4.2 percent in the second quarter.

 

MISINFORMATION IS "CANCER."  New owner of the Los Angeles Times, billionaire Patrick Soon-Shiong, advocates for a change in how people consume news on social media, calling misinformation and how it's spread the "cancer of our time."

 

CADDIE HQ BACK TO DETROIT.  General Motors’ is moving its Cadillac headquarters back to Detroit after four years in New York.  Triggering the move is management wants Cadillac leaders to be closer to vehicle design and engineering.

D.C.'s SHUTDOWN SAGA CONTINUES.  Latest periodic cry of government shutdown ends when Congress last Wednesday approves a $854 billion bill to keep government open through Dec. 7.  So look for more talk about government shutdown in late October.

HALF OF TOP 10 TV SHOWS INVOLVE FOOTBALL.  What moves Americans to TV viewing? Football. With the top 10 shows in the Sept. 10-16 period, five spotlighted football, grabbing first, third, fifth, seventh and eighth spots.  Always high-ranking “60 Minutes” comes in at No. 2.

'DONUTS' DISAPPEARS.  Dunkin’ Donuts is dropping Donuts from its name because of the chain’s increased focus on beverages.  The shorter name takes effect in January.

CHINESE BLOCK U.S. SHIP TO HONG KONG.  While Hong Kong has been a traditional port of call for U.S. Navy ships, the Chinese government denies the amphibious assault ship USS Wasp a visit, causing a fresh U.S.-China chill.

TED TURNER SAYS CURB POLITICS ON CNN.  Ted Turner, CNN founder, says he still occasionally watches the network he started nearly four decades ago, although he thinks it's a little heavy on politics.

Tiny increase seen in 2017 Social Security monthly checks

Seniors receiving monthly Social Security checks will continue to be squeezed as announcement this week of 2017's cost of living adjustment (COLA) is expected to be a slim 0.3 percent --- or even 0.2 percent --- lowest annual increase on record, forecasts Grumpy Editor.

Eating into that tiny raise, amounting to a few dollars a month (following no COLA for 2016), will be a boost in Medicare Part B premiums for about 39 million people 65 and up.

Medicare part B covers doctors' visits and outpatient services.

The Bureau of Labor Statistics averages consumer price indexes from July, August and September to determine next year’s COLA for Social Security and Supplemental Security Income recipients.

As comparison, the 2015 COLA was 1.7 percent.  It followed increases of 1.5 percent for 2014, 1.7 percent for 2013 and 3.6 percent in 2012, after two years with no raises.

 

IN CASE YOUR FAVORITE NEWS OUTLETS MISSED THESE...

While media usually use the word "allegedly" in reporting an incident or event not confirmed, that word is missing in most of the vast coverage of Donald Trump and womens' claims of inappropriate behavior.  "Let’s be clear on one thing, the corporate media in our country is no longer involved in journalism --- they are a political special interest no different from a lobbyist,” says Trump in a  speech in West Palm Beach, Fla. “Their agenda is to elect crooked Hillary Clinton at any cost, at any price, no matter how many lives they destroy"...An Associated Press story out of Los Angeles reports on a fire at a 15-story home for seniors that left three elderly residents with burns and smoke-inhalation injuries --- but fails to pinpoint the exact location in the vast metropolitan area...A new Rasmussen Reports survey finds just 29 percent of likely U.S. voters trust media fact-checking of candidates’ comments while 62 percent believe news organizations skew the facts to help candidates they support...What are military commanders reading these days? A new 72-page volume via the Pentagon covers: “Transgender Service in the U.S. Military: An Implementation Handbook”…HP Inc. (the former Hewlett-Packard Co.) plans to cut 3,000 to 4,000 jobs within the next three years…In a Wall Street Journal newsroom overhaul to cut editorial flab, Editor-in-Chief Gerard Baker advises staffers that unnecessarily long stories would be trimmed amid a focus on digital journalism.

 

A headline over an Associated Press story in the no-kidding department from Washington:

       Government says colder weather will boost winter heating bills

With 'muted' inflation, seniors 2015 COLA: 1.7 percent

While growing inflation was indicated just four months ago, that "dragon" has vaporized with today's announcement that the 2015 cost of living adjustment (COLA) for Social Security recipients and others will be 1.7 percent, the fifth time in six years that the COLA was under 2 percent, notes Grumpy Editor.

Some seniors faced with higher costs in vital areas such as health care, utilities, car insurance, groceries and airline travel are raising eyebrows over the Bureau of Labor Statistics tally.

The 2015 COLA compares with increases of 1.5 percent for 2014, 1.7 percent for 2013 and 3.6 percent in 2012 following two years with no raises.

The BLS averages consumer price indexes from July, August and September to determine next year’s COLA for about 60 million Social Security and Supplemental Security Income recipients.

As recently as May there were indications of higher inflation.  That's when the BLS announced year-over-year gain in the consumer price index for the 12 months ended in April jumped to 2 percent.

A June 13 headline in The Wall Street Journal read:  Inflation "Dragon" Shows Signs of Stirring.  Two days later, Associated Press reported “evidence that inflation is ticking up from low levels.”

After the BLS released figures on June 17 that showed the CPI rose 2.1 percent over the prior 12 months, media reported indications point to “a burst of higher inflation.”

That’s when John Ryding, chief economist at RDQ Economics LLC, said, “we’ve got an inflation rate that’s been rising more than the Fed expected."

Those June reports came as an early indicator that Social Security recipients might get an improved COLA boost for 2015.  But, as with the weather, clouds suddenly began to appear on the horizon.

In July, the BLS said consumer prices rose 1.6 percent from a year earlier --- down from 2.1 percent it reported just a month earlier. 

Then in late August word was put out that most signs point to “benign inflation pressures.”

Going into September, media resurrected use of the long-used "tame" in referring to inflation.  At month's end, Federal Reserve Bank of Chicago President Charles Evans said inflation was "stubbornly low."

Inflation took a back seat last week when the "risk of deflation" phrase made a reappearance with reports of slowing global economic growth.

Fed figures vary as S.S. COLA calculation time nears

Financially squeezed retirees will be observing prices closely in the July-August-September quarter, since that’s the period the government bases its cost of living adjustment (COLA) for Social Security payments starting in January and already June figures --- released three days apart last week from two government agencies --- showed some wide variations as eyes are fixed on inflation that is quietly stirring on the sidelines, notes Grumpy Editor. 

Focusing solely on the vital food element, the U.S. Department of Agriculture (USDA), while emphasizing to media that overall food inflation will remain near the historic norm this year, went on to somewhat contradict itself by mentioning:

■  The drought in California, a prime source for supermarket products, “could potentially have large and lasting effects on fruit, vegetable, dairy and egg prices” while drought conditions in Texas and Oklahoma “could drive beef prices up even further.” The USDA predicted wholesale beef prices advancing 8 to 9 percent this year with pork prices jumping 10 to 11 percent.  In contrast, the Bureau of Labor Statistics (BLS) said, “dairy and related products turned down in June.” 

■  Before the lack of irrigation water in California smacked vegetable crops, thus boosting prices, the USDA expected 2.5 to 3.5 percent “food inflation” this year. 

■  Also facing higher prices:  fish and seafood due to decreased supplies of some species and higher consumer demand. 

■  News from the BLS cited food costs, after surging in recent months, slowed to a tiny 0.1 percent rise in June from the prior month when it gained 0.5 percent.  That, added the BLS, put June with the smallest monthly increase since January and thus lowered the annual increase in food prices to 2.3 percent from 2.5 percent in May.

Into the final COLA mix, of course, also goes medical, energy, shelter, apparel, new vehicles, among other items.  (CPI-W is the basis for the 2015 Social Security COLA, stemming from the third quarter.) 

The latest tally put the consumer price index on all items in the 12 months to June up a rather modest 2 percent --- with the BLS noting (contrary to the USDA report) “the food index decelerated in June.” 

A Rasmussen Reports survey earlier this month revealed 88 percent of U.S. adults said they are paying more for groceries this year than in 2013.

 

IN CASE YOUR FAVORITE NEWS OUTLETS MISSED THESE...

 

Major media aren’t on to this yet:  Some young illegal border crossers are being transported around the country by --- U.S. Coast Guard aircraft…Grabbing much media attention (especially broadcast news) last week was the report of a female burglary suspect, 28, who was shot dead outside the home of an 80-year old man in Long Beach, Calif. after she allegedly shouted, "Don't shoot me! I'm pregnant ---I'm going to have a baby."  However, there was little follow up following word from the coroner Friday that the woman was NOT pregnant...Attention news release writers:  Chicago-based communications firm Greentarget noted journalists are bombarded with press releases, with 45 percent of them getting 50 or more a week while 21 percent receive at least 100 --- with the majority of recipients spending less than 60 seconds looking at them…New York Daily News trimmed 17 more newsroom staffers…Another HOA in action:  Lake of the Pines Homeowners Association, Auburn, Calif., told a Vietnam War veteran who --- for a decade --- has been building furniture in his garage and giving it to needy families to shutter his activities or be fined between $100 and $1,000.  “I don’t make a profit. The money I spend is my own money, my own time and talents,” said Dennis Kocher …In the “huh?” department:  Pentagon operations in the U.S. and overseas are threatened by climate change.  "The effects of the changing climate affect the full range of department activities, including plans, operations, training, infrastructure, acquisition and longer-term investments," said Daniel Chiu, a deputy assistant secretary of defense…Congress departs on a five-week vacation this week.  A key reason not much has passed:  Senate majority leader Harry Reid (D-Nev.) has 330 bills piled up in his office…Associated Press reports that after spending nearly $300 million on a new computer system to handle disability claims, the Social Security Administration still can't get it to work --- and officials can't say when it will.  AP mentioned Maryland-based Lockheed Martin was selected in 2011 as the project’s prime contractor…Alan Murray moves into the editor’s office at Fortune magazine on Aug. 25.  He was president of Pew Research Center in Washington, D.C., and earlier worked at The Wall Street Journal and CNBC.

 

A steamy TV spot for Carl’s Jr. and Hardee’s pairs swimsuit model Hannah Ferguson and actress-entertainer Paris Hilton promoting the Texas BBQ Thickburger.  Yes, it employs the old soaping down a big, muddy pickup truck routine and munching on the monster sandwich.  See the footage here.

 

Social Security COLA for 2013: a modest 1.7 percent

The 1.7 percent increase in the 2013 cost of living adjustment (COLA) for seniors, announced today, means about 60 million Americans receiving Social Security and Supplemental Security Income (SSI) payments starting in January will be squeezed in keeping up with bills, notes Grumpy Editor. 

Latest COLA represents about half the 3.6 percent boost for 2012 that came after two years with no raises. 

That translates to an annual average increase since 2009 of only 1.3 percent, hardly enough to keep up with higher costs for utility, gasoline, food, health-medical and most other bills. 

The Social Security COLA is based on increases in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). 

Bureau of Labor Statistics (BLS) officials compare inflation in the third quarter with the same prior-year period.

Things could get even tighter for many retirees. 

Some of the 2013 increase could be wiped out by higher Medicare premiums --- to be announced later --- that are deducted from Social Security payments. 

Government projections indicate Medicare Part B premiums are expected to rise about $7 a month in 2013 from this year’s $99.90 for most seniors. 

Medicare covers services, such as lab tests, surgeries and doctor visits plus supplies (like wheelchairs and walkers) considered medically necessary to treat a disease or condition. 

The Social Security Administration says most retirees rely on monthly Social Security payments for 90 percent of their income.

Noteworthy this year is that today’s slim COLA for retirees comes exactly three weeks before Election Day.

Early numbers point to lower 2013 COLA for seniors

Seniors looking for a 2013 cost-of-living-adjustment on par with this year’s 3.6 percent COLA may be disappointed, sees Grumpy Editor. 

Media have been quiet on this outlook but the way things are shaping up, Social Security recipients will be lucky to get half that increase starting in January. 

Despite Americans getting hit harder in the wallet, especially with food and energy, the U.S. Bureau of Labor Statistics maintains consumer prices remained steady last month, continuing the long-heard line that “inflation pressures are contained” --- or “tame,” as the media like to describe it. 

Figures from July, August and September will be averaged out to determine the 2013 COLA for about 60 million Social Security and Supplemental Security Income recipients. 

BLS figures released last Wednesday show the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 1.3 percent over the last 12 months.  But for July, the index decreased 0.2 percent prior to seasonal adjustment. 

The CPI-W index for the third quarter this year vs. the like quarter last year is the key factor in determining the SS and SSI increase for 2013. 

Seniors can get another hint of the CPI direction with BLS’s release of August figures on Sept. 14.

 

Many editors shun Social Security pay raise on front pages

In deciding stories vying for limited front-page space of newspapers, savvy editors consider interest to readers in their circulation areas.  So it’s rather surprising to Grumpy Editor that announcement of a long-sought cost-of-living increase for 58 million Americans --- that's one fifth of the population --- didn’t make many opening pages yesterday across the country.

It indicated not all editors are fully tuned in as to what is news.  Or perhaps they were distracted in watching Wednesday night's opening game of the World Series. 

News that financially-squeezed Social Security and Supplemental Security Income (SSI) recipients will see monthly benefits rise 3.6 percent starting in January was especially newsworthy because it marks the first increase since 2009. 

It also indicated inflation isn’t so “tame” (as media have labeled it for many months) after all. 

An extensive survey of U.S. newspapers by Grumpy Editor uncovered few dailies yesterday placed the COLA story on front pages. 

Among those that did: 

The Washington Times, with the COLA for Social Security and SSI recipients as one of five front-page stories. 

The News Journal, Wilmington, Del., had it as one of four front-page pieces. 

The Garden Island, Lihue, Hawaii, made it one of four front-page stories. 

Others that ran the development as a front-page one-sentence “refer” to stories on inside pages included: 

The New York Times

The Atlanta Journal-Constitution

San Francisco Chronicle

Austin American-Statesman

The Salt Lake Tribune

Among key dailies skipping any front-page mention: 

The Los Angeles Times, San Diego Union-Tribune, Denver Post, Hartford Courant, Washington Post, The Miami Herald, Tampa Tribune, Chicago Tribune, Chicago Sun-Times, The Indianapolis Star, South Bend (Indiana) Tribune, The Des Moines Register, The Times-Picayune (New Orleans), The Baltimore Sun, The Boston Globe, The Detroit News, Star Tribune (Indianapolis), Kansas City Star, Omaha World-Herald, The Star-Ledger (Newark), Albuquerque Journal, The Oklahoman, The (Portland) Oregonian, The Philadelphia Inquirer and The Dallas Morning News. 

And how did The Wall Street Journal treat it?  The business paper combined the latest consumer price index (mentioned in a front-page refer) with the Social Security COLA information on page A6.

 

Higher Medicare cost cuts into 2012 Social Security COLA

For 60 million Americans receiving monthly Social Security and Supplemental Security Income (SSI) payments, today is “pay raise” notification day --- a cost of living adjustment (COLA) that starts in January 2012, notes Grumpy Editor.

Benefits will rise 3.6 percent, the first increase since 2009. 

However, before the champagne bottles pop, an expected increase in Medicare Part B premiums, deducted from Social Security payments, will be eating into the COLA. 

Medicare Part B premiums for 2012 are scheduled to be announced next week. 

Social Security trustees’ earlier predictions put premiums for most recipients jumping to $113.80 a month next year from $96.40 a month this year. 

The Social Security Administration says most retirees rely on monthly Social Security payments for 90 percent of their income. 

The Social Security COLA is based on increases in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).  Officials compare inflation in the third quarter of each year with the same prior year period.

With the average Social Security payment of $1,082 a month in 2012, the 3.6 percent increase amounts to an additional $39. 

Presto! August Social Security payments flow on time

Following several weeks of scary-to-seniors dire warnings --- from President Barack Obama to national print and broadcast media --- that more than 45 million Americans may not get their August Social Security payments if the debt-ceiling crisis was not resolved, lo and behold, just minutes after the debt-ceiling vote passed in Washington, the Social Security Administration issued a news release saying benefits will be paid on time, notes Grumpy Editor. 

Whew! 

Imagine this miraculous speed:  With the green light and to meet the next-day (Aug. 3) dissemination, the U.S. Treasury Department immediately cranked up its check-printing presses or geared for direct deposits to millions of recipients.  Then, for the mailed checks, the U.S. Postal Service took over for following-day distribution around the country --- a delivery process that usually takes two days to mail boxes. 

Hard to believe? 

Not even usual eyebrow-raising investigative reporters were stirred by this magical, super-fast federal government action, equal to pulling a rabbit out of a hat. 

Strangely, with millions of Americans concerned, few print and broadcast media reported the announcement that Social Security benefits would be paid as usual and on time. 

The Aug. 2 news release from the Social Security Administration announced “payments for August 3 will be made on time and as scheduled.  Payments for August 10, 17 and 24 also will be made as scheduled.” 

The three-paragraph news release also reminded that “current beneficiaries must switch to electronic payments by March 1, 2013.” 

That should provide another “crisis” for media, focusing on recipients who do not have bank accounts.