Wed Dec 19, 2012, 09:05 PM
limpyhobbler (8,244 posts)
Disabled American Veterans oppose the Chained CPI
Thanks to this youtube user for posting this:
4 replies, 1067 views
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Disabled American Veterans oppose the Chained CPI (Original post)
Response to limpyhobbler (Original post)
Thu Dec 20, 2012, 10:01 AM
midnight (26,624 posts)
4. Latest... Now Pelosi saying CPI strengthing social security?
The chained CPI works by assuming that when the price of a product, such as beef, gets too high, consumers don't keep paying the higher prices. Instead, the model predicts they will switch to something cheaper, such as chicken, keeping their cost of living lower and leading to a lower rate of inflation, as measured by the chained CPI. The lower rate of inflation would mean a downward adjustment in cost of living, and thus stingier benefits.
The cuts would start small, but wind up costing beneficiaries thousands of dollars over time, which is why Democrats have traditionally fought the idea.
But Pelosi wrapped both her arms around it Wednesday, insisting she does not regard it as a "cut."
"No, I donít," she told reporters. "I consider it a strengthening of Social Security, but thatís neither here nor there."