Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

Honeycombe8

(37,648 posts)
Fri Apr 5, 2013, 08:55 PM Apr 2013

AARP's take on the chained CPI

Changing the cost-of-living adjustment (COLA) using a chained CPI would have a detrimental impact on the economic wellbeing of older and disabled Americans and their family members who receive benefits from Social Security. Small reductions to the annual COLA will accumulate over time so that the largest reductions in benefits will be on the oldest beneficiaries and the long-term disabled. For example, 92- year-old beneficiaries who were on the program for 30 years would see an 8.4% cut in benefits. Disabled children could face even larger benefit cuts over their lifetime. Oldest Americans are the least able to absorb cuts to their benefits as they are more reliant on Social Security for their income and have higher out-of-pocket medical spending and a higher poverty rate than younger Americans.

In addition to the chained CPI, this insight on the issues discusses alternative measures of inflation that could be used to adjust Social Security benefits, such as an elderly price index. It also discusses their implications for beneficiaries and for the solvency of Social Security.


http://www.aarp.org/work/social-security/info-10-2012/proposed-changes-to-cola-insight-AARP-ppi-econ-sec.html

What I don't understand is, why? If Social Security does not contribute to the deficit, this won't help the deficit issue. If Social Security is solvent right now and for the next couple of decades, then why this NOW?

Even if it did help the deficit, I thought the Dems weren't going to put the burden of the recession mess on the backs of the poor and middle class, who weren't the ones to cause it.

I'm not angry. This gets me depressed. I can recognize when we all need to buckle down and contribute some to get out of this mess, but this lessening of Social Security and veterans' pensions makes no sense to me. And 8.4%? That's a huge cut. Imagine if we tried to raise taxes 8.4%...the howling would be heard on the moon.

Of all the groups of people to punish....people who have worked all their lives and contributed. People who have fought wars for this country while people like Bush and Romney sat it out. While corporations like Exxon get huge subsidies. Very upsetting.
6 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies
AARP's take on the chained CPI (Original Post) Honeycombe8 Apr 2013 OP
That's good material Kolesar Apr 2013 #1
Then why do older people vote Republican? treestar Apr 2013 #2
My dad is a Republican. He's on Medicare & receives Soc Security. Honeycombe8 Apr 2013 #3
"Then why do older people vote Republican?" PearliePoo2 Apr 2013 #4
Why? Because Chained CPI eliminates any reason not to privitize... Demo_Chris Apr 2013 #5
Hmmmm. That's something to think about. ntf Honeycombe8 Apr 2013 #6

Kolesar

(31,182 posts)
1. That's good material
Fri Apr 5, 2013, 08:57 PM
Apr 2013

I found it a few weeks ago and read it. There are a few other background articles linked to it.

treestar

(82,383 posts)
2. Then why do older people vote Republican?
Fri Apr 5, 2013, 09:00 PM
Apr 2013

It is the Republicans that force these sorts of deals. It is Republicans who would do away with the program altogether. If they voted for Republicans, they can hardly complain. This would not even be an issue if Boner weren't speaker.

How dare these older people complain if they voted Republican? I understand a majority of them did, especially the white ones.

Honeycombe8

(37,648 posts)
3. My dad is a Republican. He's on Medicare & receives Soc Security.
Fri Apr 5, 2013, 09:09 PM
Apr 2013

I don't understand it, either. He was convinced a few years ago that Obama wanted to cut Medicare (which Obama has done, in fact, I believe)...without a clue that the Republicans want to extinguish it entirely.

I can do one better than that, as well. My brother is a far right Republican AND an early retiree, thanks to his UNION.

PearliePoo2

(7,768 posts)
4. "Then why do older people vote Republican?"
Fri Apr 5, 2013, 09:13 PM
Apr 2013

A bunch of reasons:
Habit..they always have (but this is not their father's Repub party they once knew)
Ignorant (not stupid, necessarily, but there is that too)
Brainwashed (by people like KKKarl)
He's black..they're white
just for starters...

 

Demo_Chris

(6,234 posts)
5. Why? Because Chained CPI eliminates any reason not to privitize...
Fri Apr 5, 2013, 09:23 PM
Apr 2013

....And that's what Wall Street wants.

Under Chained CPI the benefits will drop every year forever. Someone in their twenties or thirties or fourties will see nothing from SS under this plan. They will simply be pissing their paychecks away to feed current retirees. And when someone points this out, and they of course will since that's the entire point, there won't be an argument in the world against privitization. The choices then will be:

1. Leave it as is and get a guaranteed nothing
2. Privitize and maybe, maybe, you get lucky and see something

Latest Discussions»General Discussion»AARP's take on the chaine...