"Would a ‘chained’ inflation index result in big benefit cuts for Social Security?
Posted by Glenn Kessler at 06:00 AM ET, 11/13/2012
When President Obama tried to reach a “grand bargain” with Republicans on the deficit in 2011, he floated the idea of changing the cost-of-living adjustment for Social Security benefits from the traditional consumer price index (CPI-W) to something called a “chained CPI.”
Essentially, that means an assumption is made that when prices rise, people will turn to a less expensive product, such as buying chicken instead of beef. Thus, the chained index tries to take into account how people react to inflated prices."
see: http://www.washingtonpost.com/blogs/fact-checker/post/would-a-chained-inflation-index-result-in-big-benefit-cuts-for-social-security/2012/11/12/489e54c6-2d1f-11e2-a99d-5c4203af7b7a_blog.html?tid=pm_politics_pop
Cake eaters quote is supposedly from a woman who lost her head over it but may never had said it. TWW learned that just now but in his defense he attended public schools:)
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