About "the" chained Consumer Price Index ... [View all]

[1StrongBlackMan]

Everyone is all hair on fire about the mere mention of a Chained CPI, as a concession in the "cliff" negotiations, as it would have the elderly eating catfood. Not knowing a lot about Chained CPIs, I let google, and the media, be my friend.

What I found was that the Chained CPI that everyone is talking about would cost the typical beneficiary about -2.6% per year under what the current CPI model provides. That comes to about $126/month ($1,500/year) in Cost of Living increases after 20 years. (Source: David Cay Johnson; TRMS, 12/18/2012) It

But what I, also, found was that there are several "Chained CPI" models, including a "Chained CPI-E" that is specifically designed to apply to the elderly. (http://www.annuitydigest.com/cpi-e/definition) According to DCJ, this model would actually increase the cost of living adjustments for its beneficiaries by $158/month (after 20 years) over what the current CPI model provides.

If I, now, know this, having spent about 40 seconds on the google and listening to a 5 minute interview ... don't you think the Democratic negotiators might also know this? Especially after thinking about what Pelosi actually said about the Chained CPI "Concession"?

"The details of this are not all ironed out, but they all mitigate for helping the poorest and neediest in our society, whether they're Supplemental Security Income recipients, whether they're 80 and older or whether they're truly needy in-between," said Pelosi, adding it was "worth making a compromise" to avoid going over the fiscal cliff.

http://www.huffingtonpost.com/2012/12/18/nancy-pelosi-fiscal-cliff_n_2324042.html