What do seniors buy? A simple question that can improve Social Security

[eridani]

http://washingtonpolicywatch.org/2012/10/24/what-do-seniors-buy-a-simple-question-that-can-improve-social-security/

As MarketWatch chief economist Irwin Kellner points out:

The price indexes that the government uses also include such items as cars, computers and cell phones, the prices for which are steady or even falling. Thus these indexes do not give enough weight to items seniors actually buy

For example, last year food rose 4.7%, apparel 4.6%, gasoline 10.3% and health care 3.5%. As you can see, these increases are well above the 1.7% COLA seniors and disabled vets will receive for 2013.

Fortunately, there’s an easy solution. Congress could change the COLA formula from the CPI-W to a new consumer price index developed specifically to reflect costs faced by elderly Americans – the CPI-E. The CPI-E (“Elderly”) would more accurately reflect costs for health insurance, hospitals, prescription drugs, nursing care and other expenses primarily incurred by seniors. In 2005, Washington Senator Maria Cantwell introduced a bill to establish a consumer price index for the elderly that would be used to calculate Social Security benefits, but it did not pass.

Instead of using a CPI based on a “basket of goods” that does not represent the purchasing habits of seniors, Congress should require the Social Security Administration to calculate benefit increases based on a CPI-E, which would better help seniors keep up with rising costs.

[PoliticAverse]

1. They're not looking to spend more money on Social Security. n/t

[TahitiNut]

2. That's the rub. Where's the FOCUS?

The "engineer" would look at the system and find ways to improve the quality and cost-effectiveness. The "money-man" looks only at reducing cost with very little attention ot quality or effectiveness. The obsessive tunnel vision that solely assesses 'health' by a balance sheet, as though the welfare and 'comfort' of the dollars is of primary concern, infects our public discourse fatally.

[yends21012]

3. Welfare and comfort of the dollars

is a phrase that really hits home. It does seem that real people are always the last consideration for budgets, expenditures, policies, and programs.

[TahitiNut]

9. When I listen for it, I can actually hear that 'focus' when the right-wing talks.

They mostly talk about "the system" and "the trust fund" (and other synonyms for the money) with concern, and when they mention the 'recipients' it's always in one of two senses: (1) how 'they' threaten the trust fund, or (2) how 'they' are similarly focused on the welfare and comfort of the money instead of making it from day to day and month to month.

Both the MittWit and Lyin'Ryan are focused to the point of obsession on the money.

[fasttense]

4. Well, inflation as a whole is inaccurately calculated in the US.

Before Raygun, the inflation rate was calculated to ...well, accurately measure inflation. After Raygun, the inflation rate is used to short change every inflation adjusted wage, pension, and benefit. Since the RepubliCONS, with some help from Democrats, have been fleecing the American worker through the CPI, why would they want to go back to an accurate measure?

""Food accounts for 47% of the basket of products that make up India's consumer-price index and 34% of China's."

In the U.S. food, along with energy are stripped out of our CPI, and the result is a more tame inflation reading. Notably, 30 years ago when Ronald Reagan entered the White House, it was precisely the spike in food and energy - ignored today - that had Reagan and others so concerned about inflation. Times change, and governments become slick, but assuming a CPI Index in the U.S. more like those in China and India, it's not a reach to suggest that the federal government's measure of inflation would be substantially higher today.

Assuming once again a basket of goods that might tilt toward commodities such as food, fuel and housing, U.S. inflation since 2001 (when the dollar's substantial fall began) would presently register at nosebleed levels."

http://www.realclearmarkets.com/articles/2011/02/01/low_us_inflation_a_function_of_clever_calculation_98847.html

So, in the US the inflation rate is stripped of food and energy and shortchanges everyone who has inflation adjusted wages, pensions or benefits.

[masshole]

5. "primarily incurred by seniors"

Sadly, more and more Americans of all ages fit the CPI-E definition.

[OldDem2012]

7. Yep...salaries and hourly wages have not kept pace with these price increases for quite some time...

...and that has severely diminished disposable income resulting in an inability to purchase most items outside of the necessities.

I would argue that the poor and rapidly disappearing middle class are suffering from these effects as much as the elderly.

[madrchsod]

6. no shit... seniors are losing purchasing power every year

i`m losing at least 5% from last year and last years raise did`t cover the proceeding year.

yup it`s the old eat shit and die

[WinkyDink]

8. Another example of MISUNDERSTANDING SOCIAL SECURITY'S PURPOSE and RECIPIENTS:

Social Security is more than retirement.

Many people think of Social Security as just a retirement program. Although it is true that most of the people receiving Social Security receive retirement benefits, many others get Social Security because they are:
•Disabled, or
•A spouse or child of someone who gets Social Security; or
•A spouse or child of a worker who died; or
•A dependent parent of a worker who died.

http://ssa-custhelp.ssa.gov/app/answers/detail/a_id/1698/~/requirements-to-receive-social-security-benefits

[Sirveri]

10. old idea, but still a good one.