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MrMickeysMom

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Member since: Tue Dec 14, 2004, 06:30 PM
Number of posts: 13,371

About Me

DU 2 to should be introduced and married to DU 3. They should produce offspring who represent the best of both parents.

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No one could quite say it like George could...



(courtesty of BartCop)

I love Alan Grayson, but couldn't follow his explanation of chained CPI

Okay, this part, I understand... "Social Security benefits are automatically adjusted each year to reflect increases in the cost of living, as determined by the consumer price index (CPI). The U.S. Bureau of Labor Statistics calculates the CPI each month."

But, splain how he got this percentage, Lucy -


Because a tripling in the price of gas basically makes everyone poorer, and thus less able to buy gas, the chained CPI doesn't count that as a 200% increase. It reduces the percentage increase in proportion to the amount of gas that people can no longer afford to buy.

In fact, the bigger the price increase (and the poorer people get), the bigger the gap between the actual price increase and the chained CPI adjustment. This effect starts off small, and barely noticeable, but then as time goes by, it swells like a blister. In fact, it swells from $1.4 billion in the first year to $22 billion in the tenth year, according to the Congressional Budget Office. So the chained CPI is inflation protection that, by design, inflation itself erodes. Ain't that just grand?"

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