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Former CBO director Douglas Holtz-Eakin weighs in on the future of Social Security and the state of the economy.
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Thank you guys moving right along from that says the tough news for senior citizens has nothing do with Swiss -- -- -- -- does have a lot to do.
With Social Security benefits expected increase by only one or 2% and it is indeed one of the smallest increases we've seen since 1975.
And Douglas Holtz Aiken joins us.
Former -- director of the Congressional Budget Office present these days of the American action forum and what's the political.
Impact you think -- of of this right before the election.
You know as a big voting bloc -- not getting a very big increase in them and their check monthly or is there impact.
I had -- seniors have regularly come to expect -- an increase in the Social Security benefit.
-- step back and ask yourself why would that happen it's because it's indexed to inflation and the fact we -- very low inflation leads to very low increases.
In Social Security benefits but to the extent that they look at that check him or that check they like that -- -- January and they're dissatisfied.
Other likely to appointed incumbent and say gee this -- many good let's let's -- -- that stuff.
That's funny enough to get outside tracked a little bit when you mentioned there there's no inflation and that's why we don't see the -- thinking back to the conversation date and -- at the top of the show with Peter Schiff and that was about.
How you know voters do see inflation is a big concern.
-- -- -- -- speculated that's probably mostly because of of of gas prices this kind of funny to see the -- that the biggest concern voters have on the one -- as inflation and the reason many of them won't be getting much money -- -- checks because there's no inflation.
-- it gets even more ironic because last year seniors got a three point 6% increase in -- and their benefits.
And I think you can find any measure of broad inflation that went up three point 6%.
In recent years so they did very well last year they'll do less well this year.
Does have a big debate about whether things like the Consumer Price Index accurately reflect the cost of living for seniors to have -- -- Much heavier weight on -- health goods and things like that but.
You know I think -- also define and if there's a political fallout it typically is on the the party in power.
It would be against it would it would fall on the presidency against the Britain aren't.
Let me ask you then and Caterpillar wrapping up this way what's your assessment of where we are then in the economy things like this.
Being give -- some consideration -- we cut muddling through is some people suggest are we -- some of the -- Canadian housing and other things suggest start to turn the corner retail sales.
Which we'll talk about a few minutes.
Or are we starting to slow down again and is another recession a possibility where are you live in that debate.
I think we're essentially going sideways and I think there's -- bigger risk to the downside I'm very concerned about the fact that.
Hot capital goods orders spurred four on on non defence side -- transition have fallen sharply in the past three months I think if you look at the sales data today you'll see.
Some strength but it's concentrated things like gasoline -- is heating up.
-- household budget so.
-- look at those -- -- the economy and -- see a real risk for something -- slower than one and a half in the fourth quarter not a recession but it's very very slow growth -- fiscal year yes talk about -- -- Always good to see Douglas Holtz Aiken thanks for coming up --
