(Zerohedge) – Thanks to The Fed’s non-transitory ‘transitory’ inflation, millions of America’s retirees are about to get the biggest pay-rise in 39 years.
Since 1975, Social Security general benefit increases have been cost-of-living adjustments or COLAs, to keep pace with The Fed’s post-Nixon inflationary pressures.
With 2020’s surge in inflation refusing to obey The Fed’s narrative, this year’s COLA will be a stunning 5.9% – the highest since 1982.
What does this mean?
The COLA, as it’s commonly known, amounts to $92 a month for the average retired worker (to $1,657 a month next year), according to estimates released Wednesday by the Social Security Administration and a typical couple’s benefits would rise $154 to $2,753 per month.
As AP reports, the increase affects household budgets for about 1 in 5 Americans, nearly 70 million people, including Social Security recipients, disabled veterans and federal retirees.
The question is – what will happen to prices of goods and services as a result of that government-funded increase in benefits?