If these changes are implemented in waves before we start to reach dangerous levels, we should be able to get Social Security on the right track moving forward. The CBO recommended that we raise the Social Security …show more content…
The matrix, which governs COLA, is based on the consumer price index, which measures changes in goods and services. These increases are then used to determine what percentage Social Security should increase. Implementing a new matrix based on ways consumers change there purchasing behavior, as prices change would create on average a difference of 0.3 percent. For instance if the current formula produced a result of 2 percent, the adjusted matrix would produce a result of 1.7 percent. This reduction would compound over time and reduce benefits by 3 percent in a 10-year