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View Diary: Chained CPI is a Cut. You Either Care About People or You Don't. (365 comments)

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  •  Increasing the benefit at a slower rate that (14+ / 0-)

    also increases it slower than the increased cost of living is a net cut. Period. Calling it a "slower rate of increase" is at best indicative of a fundamental misunderstanding; at worst it's intellectually dishonest or outright lying.

    •  I understand fine and I do not (1+ / 0-)
      Recommended by:
      misslegalbeagle

      see how expressing my opinion could ever by lying.  Which version of CPI is used to determine an increase is just that, determining how much of an increase there should be.  The question of whether or not that is enough to keep up with recipients' cost of living changes will be determined by which CPI thier actaul cost of living change actually reflects.  

    •  FWIW, what I pay for groceries has about (10+ / 0-)

      doubled over the past 3 years.  Where is the CPI in all that?

      And let's not get into fuel costs.

      The hungry judges soon the sentence sign, And wretches hang, that jurymen may dine.

      by magnetics on Wed Dec 19, 2012 at 11:53:51 AM PST

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      •  Depending on what index is used and what (5+ / 0-)

        is included in the calculation of cost of living increases will determine whether your benefits or pensions would rise. If the groceries that you buy are included in the index, the index will rise reflecting rising inflation and hence any benefits and pensions that are indexed to it will rise in line.

        This is a very important point as it can be used to explain why the choice of index is so very important. If the index used is based upon goods consumed by younger as opposed to older people it will not reflect the impact of the rising costs of goods consumed by elderly people. Heating costs is a good example, even in the same area, elderly people need higher heating due to their age and the fact that they feel the cold more compared to younger people. If your index doesn't reflect this specific increase in costs then your payment won't offset the rise in prices of heating and fuel. Does that make sense?

        "Hegel noticed somewhere that all great world history facts and people so to speak twice occur. He forgot to add: the one time as tragedy, the other time as farce" Karl Marx, The Eighteenth Brumaire of Louis Bonaparte .

        by NY brit expat on Wed Dec 19, 2012 at 12:52:14 PM PST

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        •  Dude, right now in this country (5+ / 0-)

          food and fuel are not counted in the CPI.

          My annual pittance of a raise (and that of just about every mid-level professional in the US of A)  is tied to CPI, which explains in part why we have not kept pace with inflation over the past 20 years.

          The hungry judges soon the sentence sign, And wretches hang, that jurymen may dine.

          by magnetics on Wed Dec 19, 2012 at 02:39:33 PM PST

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          •  not a dude ... am a woman (5+ / 0-)

            after rent and housing, food, energy, fuel and clothing are the biggest expenses of the spending of working and poor people. Certainly some, if not all, of these things are included in various consumer price indexes as they are indexes of what people purchase for general consumption. So unless you are consuming things that are unique or extremely rare then they will be included in various indices.

            Whether or not you have receive an increase in benefits or federal or state worker wages or pension is less to do with the current index than whether they have frozen workers wages in the state sector, frozen pensions (which has been the case with federal workers' pensions) ... benefits are linked to the chosen index of inflation. Now, the index may be incorrect, insufficient, or poorly compiled, but the composition of the index (in terms of goods, services, water, fuel, housing, etc) depends on what that is ... wages are not necessarily linked to cost of living or inflation indices; state and civil sector wages are unless they have been frozen. I do not know if you are working and where, on a pension, or on benefits however inadequate they are ...  so I cannot answer you specifically.

            "Hegel noticed somewhere that all great world history facts and people so to speak twice occur. He forgot to add: the one time as tragedy, the other time as farce" Karl Marx, The Eighteenth Brumaire of Louis Bonaparte .

            by NY brit expat on Wed Dec 19, 2012 at 02:54:50 PM PST

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            •  Sorry-- I used to write Dude/Dudette, (1+ / 0-)
              Recommended by:
              NY brit expat

              but since I learned that my lady engineering colleagues are OK with my calling them 'Dude' I just use it as a unisex form of address.

              I remember the shock I felt as a teenager (decades ago) the first time I heard a girl call some other girls 'you guys.'

              The hungry judges soon the sentence sign, And wretches hang, that jurymen may dine.

              by magnetics on Wed Dec 19, 2012 at 10:57:37 PM PST

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              •  I usually use a gender neutral term (1+ / 0-)
                Recommended by:
                magnetics

                the post-bill and ted's excellent adventure term may hold for younger people, but some of us take offence when their gender is wrongly ascribed especially in a serious discussion where it is automatically assumed that someone who has knowledge of economics is a man. :)

                "Hegel noticed somewhere that all great world history facts and people so to speak twice occur. He forgot to add: the one time as tragedy, the other time as farce" Karl Marx, The Eighteenth Brumaire of Louis Bonaparte .

                by NY brit expat on Thu Dec 20, 2012 at 04:27:09 AM PST

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                •  As it happens, an old friend is an emeritus (0+ / 0-)

                  Professor (I should  say professor emerita) of economics.

                  Back in the 1960's, she was a consultant for the South Korean government; and when I asked her how the Korean officialdom (in that era) responded to her as a woman, she replied that any such problems evaporated, once she had shown them she was a serious scholar.

                  The hungry judges soon the sentence sign, And wretches hang, that jurymen may dine.

                  by magnetics on Thu Dec 20, 2012 at 09:59:32 AM PST

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                  •  have bad news for you ... (1+ / 0-)
                    Recommended by:
                    priceman

                    the level of your scholarship is almost incidental in terms of the sexism you face in academia, especially in male dominated fields like economics, especially in economic theory ... have lived it; only the extremely strong survived it in the 1960s and even today ...

                    "Hegel noticed somewhere that all great world history facts and people so to speak twice occur. He forgot to add: the one time as tragedy, the other time as farce" Karl Marx, The Eighteenth Brumaire of Louis Bonaparte .

                    by NY brit expat on Fri Dec 21, 2012 at 05:19:10 PM PST

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          •  The CPI used for social security COLAs (0+ / 0-)

            includes food and fuel.

            There is another index, known as the core rate, that excludes food and fuel.  It is mainly used by the Federal Reserve in determining monetary policy.

            "Well, I'm sure I'd feel much worse if I weren't under such heavy sedation..."--David St. Hubbins

            by Old Left Good Left on Wed Dec 19, 2012 at 08:41:27 PM PST

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