The Gary Null Blog

November 15, 2011

By Dean Baker

As retirees age, rising Medicare premiums will be reducing the buying power of their Social Security check each year. And this is the median; half of all seniors will have less income than this to support themselves.

The austerity gang seeking cuts to Social Security and Medicare has been vigorously promoting the myth that the elderly are an especially affluent and privileged group. Their argument is that because of their relative affluence, cuts to the programs upon which they depend is a simple matter of fairness. There were two reports released last week that call this view into question.

The first was a report from the Census Bureau that used a new experimental poverty index. This index differed from the official measure in several ways; most importantly it includes the value of government non-cash benefits, like food stamps. It also adjusts for differences in costs by area and takes account of differences in health spending by age.