Present CPI Already Understates Inflation By 2% To 3% Thanks To Clinton Gingrich Bargain In 1990's

[TheMastersNemesis]

Clinton already bargained away at least 2% of the CPI when he agreed to the Gingrich/GOP plan to remove certain inflating items and include certain deflating items in the mid 1990's lest we forget. And by including the deflating cost of electronics in the mix that undercut the CPI index and has continued to do so. Inflation is actually more like 5% at least if you include what what excluded.

What Obama proposes is absurd because it essentially means that we have two CPI's. One CPI for federal programs and another "regular" CPI. Would a regular CPI cover wages and benefits? What would a regular CPI mean? Does that mean that we would apply a regular higher CPI as an excuse to increase wages of CEO's and management and then use a "chained CPI" for everyone else and in particular for people who need federal help to exist?

After Clinton vetoed the original GOP budget during his first term, he allowed the GOP to keep their adjustment to the CPI formula. I remember the furor about how the change would cost seniors billions over 20 years back then. The analysis at the time was that the CPI would be up the 3% understated for the purposes of federal program increases including Social Security. Yet nothing was done to stop it. Clinton agreed to be bipartisan and as a "new" Democrat.

Seniors have been suffering under at last a 2% - 3% understatement in inflation for all these years already. Every year seniors and even wage earners are falling behind every year already. That is why everything is so stagnated.

[HiPointDem]

1. kr

[Glitterati]

2. They DON'T CARE!

What part of that do you just not get?

We poor are not their target audience. We can starve. They don't care when it comes to their LEGACY!

They want to be known as the Best Damned Republican President in History; all the while depending on us "fucking retards" to keep voting them into office.

You can stop wondering why the American people are so apathetic - it's because those WE support work to screw us every time we bother to vote.

[Laelth]

3. k&r for the truth, however depressing it may be. n/t

-Laelth

[indepat]

4. This issue, among many others, illustrates that we have effectively had right-wing governance since

the early days of the gipper, and the lot of most Americans has been severely damaged thereby. EOS.

[bemildred]

5. Indeed, that is why they like it, they got away with it once before. nt

[Kolesar]

6. There are three or four CPIs already:

...cost of living, cost of wages, cost of elderly expenses, ... those are documented at www.aarp.org in their articles on this issue.

There is inflation and there is inflation with energy costs removed that are tracked for economists, too.

[AnotherMcIntosh]

7. True. But we're not supposed to notice.

[Kolesar]

8. Only one DU donor on this thread

Me!

[hedda_foil]

9. So what? I'm a donor, but I'm hardly the most valuable contributor to this board

Many of the DUers on this thread contribute far more thoughtful posts year after year than either of us. And it's the quality of ideas that bring people to DU so that those who can donate a bit to keep this place afloat are motivated to do so.

And k&r to the OP for a very thoughtful thread. Please continue it.