Obama/Biden need to rule out a chained CPI.

[woo me with science]

Last edited Wed Sep 5, 2012, 12:09 PM - Edit history (2)

Biden promised today that there will be "no changes to Social Security."



A chained CPI does not directly change the Social Security PROGRAM. However, it is an indirect method of lowering projected benefits, and it does so even more viciously over time.

Democrats need to demand clarity. The administration proposed a chained CPI last April. Advocates of the chained CPI have often used a word game...denying that the chained CPI is a cut to SS....in order to defend this indirect assault on SS benefits. In fact, the new Democratic platform refers to cuts in safety nets as not the "only" way to address deficits, which is extremely worrisome language.

Democrats, and all Americans, need assurances that a chained CPI and any other direct OR indirect assault on SS benefits is OFF THE TABLE.


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Playing inflation games with Grandma: The Washington Consensus and the Chained CPI
http://my.firedoglake.com/deanbaker/2012/04/05/playing-inflation-games-with-grandma-the-washington-consensus-and-the-chained-cpi/

The chained CPI is not just a cut. It is also a regressive tax increase.
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=439x1445127

The chained CPI....Assumes switching from hamburger to catfood
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=103&topic_id=612538&mesg_id=612538

Chained CPI would hurt middle class families and veterans as well as seniors.
http://www.dailykos.com/story/2011/07/28/1000043/-Chained-CPI-will-hurt-middle-class-families-as-well-as-seniors-veterans

[ProSense]

1. Didn't I call it?

It doesn't really matter what Obama or Biden says.

Biden guarantees: 'There will be no changes in Social Security'
http://firstread.nbcnews.com/_news/2012/08/14/13282109-biden-guarantees-there-will-be-no-changes-in-social-security

"No changes" is code for "change," right?

[limpyhobbler]

2. k/r nt.

[woo me with science]

3. kick

[pinqy]

4. The CCPI is more accurate

The CPI-W, used for SSI COLA cannot account for changes in spending to maintain the same standard of living. It emulates it at the lower levels by using geometric means average (an arithmetic mean gives the upper bound of price increases), but cannot account for change in buying habits at the larger level. A chained CPI can.

All the arguments I hear are either untrue (like claims of direct substitution of goods to lower the standard of living) or based on emotional appeal that the results will be lower, regardless of whether or not the lower results are more accurate.

[JustABozoOnThisBus]

6. How does it work over the long term?

In year 1, let's say the price of chicken rises 1% and beef rises 10%. We could say that a smart consumer will buy mostly chicken, so the index rise is 1%.

In year 2, maybe the price of chicken rises 10% and beef rises only 1%. Again, we could claim that the smart consumer will switch from chicken to beef, so the index rise is 1%.

By consistently pegging the CPI to the commodity with the lowest price hike, the long-term CCPI will generally not keep up with inflation.

Or, am I reading the idea of "chaining" incorrectly?

[woo me with science]

5. Kick

[HiPointDem]

7. +1

[ProSense]

8. Biden guarantees: 'There will be no changes in Social Security'

Biden guarantees: 'There will be no changes in Social Security'

By Michael O'Brien

Updated 5:30 p.m. - Vice President Joe Biden told cafe patrons in Virginia on Tuesday that he could "guarantee" he and President Obama would allow no changes to Social Security.

As a debate over reforming entitlements -- particularly Medicare -- takes center stage in the 2012 presidential campaign, Biden seemed to promise not to allow changes to the program.

"Hey, by the way, let's talk about Social Security," Biden said after a diner at The Coffee Break Cafe in Stuart, VA expressed his relief that the Obama campaign wasn't talking about changing the popular entitlement program.

"Number one, I guarantee you, flat guarantee you, there will be no changes in Social Security," Biden said, per a pool report. "I flat guarantee you."

- more -

http://firstread.nbcnews.com/_news/2012/08/14/13282109-biden-guarantees-there-will-be-no-changes-in-social-security

Of course, adjusting the CPI isn't a "change," right?

This is becoming laughable.

[HiPointDem]

9. adjusting the benefit formula is a change.

[woo me with science]

10. Kick

[woo me with science]

11. Kick

[Enrique]

12. good call

[woo me with science]

14. Thank you. :)

I was certainly not alone on that one.

[limpyhobbler]

13. They need to keep this promise

from: http://www.facebook.com/CREDO/posts/176431252491645

If they don't, the gop will kill them with it in the next election.

[woo me with science]

15. Yup.

I was afraid it was a word game at the time.

I remembered hearing weaselly Third Way types trying to claim that the chained CPI does not change the SS *program,* while knowing all the time that it causes vicious slashing of benefits.