Elizabeth Warren 'Shocked' At White House Plan To Cut Social Security

[Raggaemon]

28. Here's the point !

MOST folks have no clue about the various CPI sub-indexes, the way the news is being pushed creates a false impression of the CPI as a one-size-fits all, it is not ! What would the impact on Social Security benefits actually be if the CPI-E is used as opposed to the CPI-U ?

This is from the Bureau of Labor Statistics :

From the Bureau of Labor Statistics : A more detailed examination of the indexes shows that the CPI-E had the highest rate of price increase of the three populations for four of the seven major groups. Medical care prices rose in excess of two times the rate of the average for all items in each population group during this 5-year period. Analysis of the relative importance data for the CPI-E, the CPI-U and CPI-W populations indicate that older Americans devote a substantially larger share of their total budgets to the medical care (see table 2). Because of this, and because the medical care component of the CPI showed the largest price increase, medical care accounts for most of the difference between the higher rate of increase in the CPI-E experimental index--as compared to the CPI-U and CPI-W indexes--during the 1990-95 period.