I've been sounding off about chained CPI for a while and how dangerous it is and how imminent I think its implementation is as well. And it is one thing that is loved by both corporate controlled parties.
The proposal to adopt a new Consumer Price Index was floated by the Obama administration during deficit reduction talks in the summer
And if that is the administration's starting point, who knows where they end up but it sure as hell won't be to the left of the starting point. Now, for some frightening numbers after the jump.
My dad recently retired. He worked from grad school until retirement age in jobs that paid middle class wages. I believe his social security payment each month is $1,200. Let's see what chained CPI will do to social security over time.
This change (a proposal called the "chained Consumer Price Index (CPI)") would shrink Social Security payments more and more over the coming decades; someone now 65 would receive $1,400 a year less when they reached age 95 than they would if the calculation did not change
Let's see, $14,400 minus $1,400 is....sorry, Dad. And my mom's social security check is even smaller than my dad's. As everyone except the 1%'s know, people need this money to survive in retirement. And, DAMMIT, they paid into the fund. It is their money! I guess they should just plan on not living as long as their parents (both their fathers lived into their 90's).
Despite fierce opposition from seniors groups, the proposal is gaining momentum in part because it would let policymakers gradually cut benefits and increase taxes in a way that might not be readily apparent to most Americans. Changes at first would be small -- the Social Security increase would be cut by just a few dollars in the first year.
Chained CPI is a very effective way to destroy social security over time. Sure, it will take 30 years. But they will never have to do another thing after they make this change. Just sit back and wait to destroy this incredibly successful and fully funded program.
As I've said before, George Bush tried to destroy social security and failed. So they had to get the Democrats to do it. Make no mistake, chained CPI is the slow death of social security.