Peter's Viewpoint

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Obama Reduces Retirement Pay

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Immigrants Who Receive Retirement Now Face Poverty
It’s just another day but you receive a call from your parents asking you to figure out why their retirement income from Social Security has just dropped this month.


After searching the Internet, I found an article with a video clip that ridiculously explains how reducing retirement payments will help to trim the TRILLIONS of debt of the USA.  I’ve heard better arguments from TV commercials regarding losing weight.

While most Americans live in the USA, many live in other parts of the world and can no longer rely on the strength of the US dollar in the currency markets.  The USD has lost over 26% of its value against the Euro alone since mid 1999.
A drop of $50 in retirement pay can be a financial disaster to those who were once part of the major workforce and immigrants that arrived on Liberty Island.

Let’s face it; the USA is a major contender for a “haircut” similar to that of what happened in Cyprus with a combination of the austerity that Greece continues to face for the wrongful conduct of its politicians.

The American government can continue to say that it will print more money but in doing so the value of the currency will also drop.  “In God We Trust” will become the slogan that foreigners will use to refute it.

Imagine what will happen in the USA if retirement pay is cut from $3,000 to $1,200 per month.  The average retirement pay in Greece was cut in similar proportions leaving people, in the lower income bracket that worked for 40 years who normally received 1,200 Euros per month with 400 Euros per month to live on.

At the same time, the average cost of living in the USA differs from state to state but in Europe the average cost from the northern to the southern areas is basically the same.

As with any political decision, someone will attempt to justify that the reductions will have a minor effect.  The truth is that most western countries are now implementing similar strategies justified as asceticism.

There is no way the US debt can be reduced without government budget cuts, and budget cuts mean that many Americans will suffer the indignation of austerity in the years to come.


Reference:
Seniors would see smaller Social Security checks under Obama budget

“Initially, the reduction in the growth of Social Security checks would be quite small ... between $38 and $45 in the first year, for the average retired worker.”

Historical Exchange Rates

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