I would say neither. SS recipients are getting cost of living adjustments that don't reflect true inflation. Also, statistics indicate that wages are trailing inflation. The winners in the past few years have been corporations, which have seen profits grab an increasing share of GDP. I'm not arguing what is right or wrong. I'm just observing.

As far as what I'd like to see, I'd prefer to see corporate profits fall and inflation moderate. Raising COLA and wages would only contribute to inflation. I'd rather see a contraction, so that expansion in the economy is not hinged upon the availability of easy credit.

Interesting tidbit (has not been factchecked, though):
1965 - Dow 1000
1982 - Dow 800

20% loss, eh? When you factor inflation, the loss grows to 75%.

Inflation is like high blood pressure. ;)

Looked at some LT charts

S&P Composite Index (I think this is the S&P500)
1946 18
1950 18
1955 40
1960 55-ish
1968 110
1972 120
1974 75
1978 100
1980 120
1983 160-170
1990 350
1995 550
2000 1500
2003 900-ish
2006 1200
eyeballed so not exact

DJIA
Don't have chart pre-1976
1976 1000
1982 800
again, just eyeballed

So, true, that from the mid 1960s until the early 1980s the stock market did a lot of churning. So far that's happening again in the 2000s.