Mark Zuckerberg, CEO of Meta, has hired three researchers from OpenAI to bolster his company’s work on artificial intelligence. This strategic move aims to guide Meta Platforms through its current AI challenges. The social-media corporation brought aboard Lucas Beyer, Alexander Kolesnikov, and Xiaohua Zhai, all of whom previously held positions at OpenAI’s branch in Zurich, as per sources privy to this information. These individuals established OpenAI’s location in Zurich towards the end of last year. Prior to their time at OpenAI, they collaborated closely within Google DeepMind, which is the organization’s artificial intelligence division. A representative from OpenAI verified that the three scientists have departed from the organization. Zuckerberg has been on an intense recruiting drive To correct the company’s AI initiatives following the underwhelming reception of its most recent model, he has sometimes proposed giving researchers up to $100 million to become part o...
Ever since it was established in August 1935, the Social Security Act has served as a vital financial cornerstone for countless Americans. The initial benefits for retirees started being distributed in January 1940, and ever since, this cherished social initiative has offered an essential economic base for individuals unable to sustain themselves financially. According to recent findings from the Center on Budget and Policy Priorities, Social Security assisted over 22 million people in surpassing the federal poverty threshold in 2023; among them were approximately 16.3 million seniors aged 65 years or older.
Moreover, it has lowered the federal poverty rate among senior citizens from an anticipated 37.3% (without the program’s existence) to just 10.1%. Over the last 23 years, Gallup surveys have shown that between 80% and 90% of retirees view their Social Security benefits as crucial for meeting daily costs. Most recently, in May, the typical monthly Social Security payment for retired workers—the largest group receiving these payments—hit a significant mark by exceeding $2,000 for the first time since the inception of this nearly 90-year-old initiative.
The Social Security Administration (SSA) announced that in May, $129.351 million was distributed among a total of 69.628 million recipients, which includes over 52.8 million retirees, nearly 5.9 million survivors of deceased workers, and 7.1 million individuals with disabilities. This resulted in an average benefit payout of $1,857.75 across all groups. For retirees specifically, the monthly average has been rising consistently because of newly enrolled members joining, some previous beneficiaries passing away, salary increments, as well as yearly increases in cost-of-living adjustments (COLAs).
Even though the average benefit for retired individuals has exceeded $2,000 for the first time, research indicates that Social Security payments have not kept up well with the rising costs faced by retirees due to inflation since the start of this century. Prior to 1975, there wasn’t a defined approach to calculate or implement cost-of-living adjustments (COLAs) for Social Security. Interestingly, following ten years without any COLA increases during the 1940s, Congress enacted a substantial 77% boost in benefits in 1950.
Starting in 1975, the Consumer Price Index for Urban Wage and Clerical Workers (CPI-W) became Social Security’s gauge for measuring inflation, enabling potential yearly modifications when needed. Despite your expectations that an extensive consumer price index covering all aspects of inflation could better represent general economic changes, reality hasn’t aligned with these hopes. The fundamental issue with the CPI-W stems from its complete title: "urban wage earners and clerical employees."
The inflation index monitors the purchasing behaviors mainly of individuals within the workforce who do not receive Social Security benefits. Conversely, over 85% of those benefiting from Social Security are aged 62 or above. People in the working phase and retired persons manage their finances distinctively; typically, younger workers expend a greater portion of their budgets on areas like education and apparel, whereas elderly folks dedicate more funds towards housing and healthcare services compared to an average employee.
The CPI-W fails to consider the heightened significance of housing and healthcare costs for retirees, resulting in an ongoing reduction in the buying strength of a Social Security dollar over time. A report from July 2024 by the non-partisan organization The Senior Citizens League indicates that the value of a Social Security dollar has dropped by 20% since 2010. Unless the CPI-W ceases to be Social Security’s measure against inflation, substantial monthly benefits for retired individuals will likely still fall short when matched against the financial burdens faced by recipients.