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
Latest Breaking News
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
General Discussion
Showing Original Post only (View all)The Fix Is In... [View all]
Though Liberals Carp at Chained CPI, Pelosi Says She Could Live With ItBy: David Dayen - FDL
Tuesday December 18, 2012 2:20 pm
<snip>
Others will have to live with it, too.
Many of what would be described as the liberal left of Congress have weighed in against using the chained CPI to calculate cost of living increases in Social Security benefits. Heres a representative sample from Sen. Jeff Merkley:
We had an election, and the voters sent a message to Congress to focus on jobs and fairness not cutting benefits for people who have worked all their lives and are now making ends meet on fixed incomes. The formula we use to adjust cost-of-living changes for seniors needs to reflects the real costs they face, not the budgetary fantasies of Washington.
I mean thats precisely it. You will hear virtually nobody claim that chained CPI represents a more accurate way of determining the cost of living for senior citizens on Social Security, because if they were honest about it, they would tailor an inflation index to the real costs of seniors. The only benefit to chained CPI is that it saves the government money at the expense of senior citizens. Thats it. Its a back-door way of lowering the benefit. Even if you agree with the methodology of the substitution effect, that people will manage the cost of living by purchasing less expensive products, you have to ask yourself if seniors have been getting away with murder all these years under the old rules. And considering they get an average annual benefit of just $13,000, and that almost half of them use that as their only form of income, without savings or anything else to fall back on, the very idea is preposterous. And the public, who has a working knowledge of Social Security benefits and how far they stretch, agrees.
Regardless of the carping of a few of those liberals and the majority of the country, however, Nancy Pelosi basically gave the game away: she will force her charges to stick with the President.
Despite these changes, Pelosi said she could convince her caucus to get behind such a plan, if need be.
Do you think you could sell it to your caucus? MSNBC host Andrea Mitchell asked Pelosi in an interview on Tuesday.
I do, replied Pelosi, adding, Yes, the Democrats will stick with the president and maybe not every single one of them.
Do you think you could sell it to your caucus? MSNBC host Andrea Mitchell asked Pelosi in an interview on Tuesday.
I do, replied Pelosi, adding, Yes, the Democrats will stick with the president and maybe not every single one of them.
Pelosi tried to emphasize the unformed idea that there would be protections for the most vulnerable. For example, the disabled on Supplemental Security Income might not be subject to chained CPI, and there could be a bump-up for people aged 80, to compensate for the cumulative effect of the benefit cut. Again, the vulnerable are a massive part of this population. This is almost the entire income source for almost half of seniors, and for 3/4 of widows or unmarried women. And 15.1% of seniors live in poverty. And if you hold all of them harmless, you erode the actual savings you can derive from this. The three-legged stool of retirement has withered away, especially since the dot-com bust and the Great Recession. This argues strongly for increasing Social Security benefits, not cutting them and not even mitigating cuts.
White House Press Secretary Jay Carney called this a technical fix to better calculate inflation. Bullshit. If this were just a technical fix, you would adjust so that the fix wouldnt hit beneficiaries in a regressive fashion, with the most pain at the bottom. This plan doesnt, to any real degree. The goal isnt to properly measure inflation, its to save money for the federal government. It always has been.
The question worth asking, then, is if we want to cut Social Security benefits, why are we talking about chained-CPI, rather than some other approach to cutting benefits thats perhaps more equitable? The answer is that chained-CPIs role in correcting inflation measurement error is helpful in distracting people from its role in cutting Social Security benefits. Politicians who are unwilling or unable to offer a persuasive political or policy rationale for cutting Social Security benefits are instead hiding behind a technocratic rationale. Were not cutting benefits, were correcting our inflation measure.
A similar dynamic is behind the popularity of raising the retirement age, or the Medicare eligibility age: Its advocates can pretend that its not a cut, but a technical adjustment made to account for the fact that Americans are living longer. Compared to other approaches to cutting benefits, raising the retirement age is, again, a substantively unwise, regressive approach. But it can be justified as a mere technocratic tweak.
A similar dynamic is behind the popularity of raising the retirement age, or the Medicare eligibility age: Its advocates can pretend that its not a cut, but a technical adjustment made to account for the fact that Americans are living longer. Compared to other approaches to cutting benefits, raising the retirement age is, again, a substantively unwise, regressive approach. But it can be justified as a mere technocratic tweak.
The phrase banality of evil comes to mind.
<snip>
More: http://news.firedoglake.com/2012/12/18/though-liberals-carp-at-chained-cpi-pelosi-says-she-could-live-with-it/
InfoView thread info, including edit history
TrashPut this thread in your Trash Can (My DU » Trash Can)
BookmarkAdd this thread to your Bookmarks (My DU » Bookmarks)
62 replies, 5487 views
ShareGet links to this post and/or share on social media
AlertAlert this post for a rule violation
PowersThere are no powers you can use on this post
EditCannot edit other people's posts
ReplyReply to this post
EditCannot edit other people's posts
Rec (42)
ReplyReply to this post
62 replies
= new reply since forum marked as read
Highlight:
NoneDon't highlight anything
5 newestHighlight 5 most recent replies
I Will End With This... Your Wife Is Your Partner... Are You Going To Let Her Know Of Your Decision
WillyT
Dec 2012
#33
So... You Could Teach... Ya Know...Spread The Word... You're Just What We Need These Days...
WillyT
Dec 2012
#40
social security will still be there even if the chained cpi goes into effect, so you can postpone
HiPointDem
Dec 2012
#48
I don't suppose this will be applied to Congressional salaries and pensions.
dflprincess
Dec 2012
#15
daughter of a congressman, sister of a mayor, connected into democratic politics from birth, she's
HiPointDem
Dec 2012
#49
+100. you have said it more poetically than my usual "the fuckers are killing people".
HiPointDem
Dec 2012
#51