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View Diary: Is chained CPI a cut? (42 comments)

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  •  You're a true gentleman, Tom. n.t (2+ / 0-)
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    tardis10, a gilas girl

    Yeah, well, you know, that's just, like, your opinion, man.

    by NMDad on Tue Apr 09, 2013 at 08:21:00 AM PDT

    [ Parent ]

    •  Let me clarify (2+ / 0-)
      Recommended by:
      wdrath, a gilas girl

      I don't believ seniors are overcompensated and would adjust that in the diary if I was on a computer. What I'm arguing is that we need to stop arguing c-CPI is a cut. It's some what irrelevant. We need to argue for a proper COLA which is not c-CPI. Obama can argue c-CPI is not a cut but he cannot win on the argument that it is a proper measure of inflation.

      •  It is the most relevant issue (7+ / 0-)

        politically.

        There is a reason why proponents of Chained CPI make the unsupported claim that CPI-W is less accurate than Chained CPI, to justify the cuts to Social Security.

        Accuracy is a one way street in this discussion, all to support cuts.

        If it is shown that CPI-E is more accurate, it still would have zero chance of enactment.

        Accuracy is a red herring to the political debate on this.

        •  It's a difference of implementation (1+ / 0-)
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          Armando

          My feeling is that if you can prove that chained CPI is inaccurate then it will be harder to implement. I atleast have not seen very many people arguing from this direction. Arguing that is a cut, while being correct, is effective as well but I don't think it will sway those who feel its not as its an emotional argument.

          •  There is no such thing as an "accurate" CPI. (0+ / 0-)

            There are several consumer price indices but what they share is that they attempt to assemble a "market basket" of goods, weighted as to how much a household spends on the goods in the market basket. Hence, a CPI-W and CPI-U. There is also a CPI-E (which is aimed at the cost of living for the elderly.)
              Chained CPI usually has a lower inflation rate than alternative CPIs, hence the love it gets from budget cutters.
               But inflation, seen from the standpoint of the elderly, looks more like CPI-E than chained CPI.
               That being the case, chained-CPI has the effect of cutting the real (inflation adjusted) income of the elderly and disabled over time.
               The administration has cynically assumed that its (former) base was too stupid to figure this out.

            •  Agreed (0+ / 0-)

              Reform can be found in other places. Using an incorrect COLA to reform SS is stupid. There is no perfect CPi but there are good and bad ones. C-CPI is not representative of inflation for seniors. This is the argument I believe we should be having, not whether one version cuts or not but which one is best.

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