The Trade War and Social Security
News of a trade war with China has experts predicting higher prices on goods made there. U.S. companies that use Chinese parts may also have to raise prices of their finished goods. An unintended benefit of higher prices means a higher inflation rate, and thus a possibly higher cost of living adjustment (COLA) for Social Security recipients to be announced later in 2019 for the year 2020. But as Maurie Backman of The Motley Fool notes in this piece, Social Security checks haven’t historically kept up with inflation when you look at the kinds of goods seniors buy. One prediction pegs next year’s COLA at 1.7%, up from a 0% estimate earlier this year. But it is still far too soon to predict. Read full piece here.