What chained CPI will do to each of the five income quintiles of SocSec beneficiaries

[eridani]

Here is what happens to SocSec beneficiaries quintile by quintile. The lowest quintile will get slightly increased benefits which will still leave them mired in poverty. That is to say real poverty, not the fake Census Bureau "poverty," which is calculated by figuring the cost of a minimal food basket (itself consisting of items not readily available in food deserts) and multiplying that number by three. It is a fantasy world in which rent, utilities and medication expenses don't exist.

The second and third quintiles will be driven INTO real poverty. The fourth quintile will have most of its discretionary income eliminated, staying slightly above real poverty The highest quintile will see serious cuts to discretionary income. As a result, businesses relying on this income will continue to disappear.

Our economy is still a depression economy. I get that the Repukes will not allow Obama to enact any kind of the stimulus spending that would help us make progress on the still deep post-crisis job deficit, but why in fucking hell would anyone sane propose trashing the stimulus spending done by retirees? Is the solution to permanent 8% unemployment supposed to be having grandma and grandpa pushing their grandkids of of jobs just to survive?

[MannyGoldstein]

1. Awful, awful stuff

Do you happen to have a link to the numbers?

Thanks!

[eridani]

2. The above is an impressionistic take on the CEPR analysis n/t

[kmlisle]

8. Look at Ezra Klines column in the NYT

He did a full analysis which says that it will not only lower in comes but also increase taxes for the middle class with the highest percentage increase coming at the 20-30 thous dollar range and the least increase coming - wait for it!- for the rich.

I just think of it like management fees on a retirement account. we all know that if a 1 or 2 percent fee on your account over 20 years (remember one "problem" is that we a re living longer) makes a huge difference on how much that account earns because every years increase is based on how much you already have and the smaller increase magnifies the loss. The same is true of the CPI - if you make less one year because of a smaller increase in cost of living then the next year the cost of living increase is based on a that income magnifying your loss more and more each year. Anyone with a retirement nest egg is very aware of this and should be able to understand the sneaky effects of the CPI. They think we are dumb!

[Broward]

3. but Obama gets a pat on the back

from the Washington elite. It's a fair tradeoff.

[SammyWinstonJack]

4. He'll get more than just a pat of the back. Bank on it, he certainly is.

[FreeBC]

9. Damn right! He's the reason people are talking about this now.

[Octafish]

17. What father wouldn't want his children to live in a $10.5 million apartment?

Which is a big reason for forgetting what it was the father went to kitchen for.

[AzDar]

5. Barack Obama *knows* better than this...

So why is he proposing this shit?

[abelenkpe]

6. Wasn't there an article yesterday

About how 1 in 8 skip doses to save money on medication? This plan will make that worse.

[Bluenorthwest]

7. Obama steps past Reagan and enters Thatcher Country

How to become the least popular man in the world? One must start by first being the most popular man in the world.

[forestpath]

13. +1

[Capt.Rocky300]

10. Maybe the plutocrats want to outsource old age..........

Just think how much farther our social security income will go in Mexico and India. If you can afford to get there.

[cantbeserious]

11. The Facts Always Seem To Silence The Supporters

eom

[Oilwellian]

12. Indeed

Where are those buggers today? I saw earlier that one of their Comrads is no longer a member of DU. Perhaps that's why they're silent?

[OldDem2012]

14. How does one respond to something that doesn't exist, and thanks to the Senate Dems....

....will never exist in any form that can be signed by the President?

How does one respond to the fact that the House GOP Tea-Nazis will never agree to a tax increase on the wealthy, which is another portion on this "proposal"?

Facts in a budget PROPOSAL by the President do not equal signed legislation. I'm not sure why that's such a difficult concept to grasp.

I suppose that I could run around outside the house and up and down the street screaming about "Chained CPI" and "cuts to SS", but I like to think that I'm fairly rational.

[Broward]

15. What's it all for then?

What end do you think Obama is trying to further with his proposal?

[OldDem2012]

16. By reinforcing the fact that the GOP Tea-Nazis want to destroy SS any way possible....

...he is creating a situation where retired and soon-to-be retired poor and middle-class GOPers will have to evaluate what's in their best interest in terms of how they will vote in 2014. They don't want SS touched any more than we do.

It's being used as a wedge issue, pure and simple.

[FogerRox]

18. KnR : Remember C-CPI will adjust the FEd poverty levels too

Keeping many Retirees above the poverty level. Not that that really matters to the seniors.

[myrna minx]

19. I feel so betrayed.