"Revising the CPI would get Democrats off the hook, but at the cost of another shameful desertion...

[Faryn Balyncd]

"...Both Democrats and Republicans have been keen to see its recommendations adopted, because they provide a potentially uncontroversial way to achieve deficit reduction. Raising taxes is unpopular, and little discretionary government spending is left to be cut. Restating the CPI as a measure of cost-of-living inflation offers an easy way to lower Social Security payments through reduced COLAs and raise tax revenues through reduced exemptions. The hope is that the CPI can be presented as an apolitical and boring technical issue that voters won't notice.

"Revising the CPI would get the Republicans off the hook of deficit reduction, while simultaneously advancing the interests of business. This, however, would occur at the expense of working Americans and the elderly. Revising the CPI would get the Democrats off the same hook, but at the cost of another shameful desertion of the constituencies they claim to represent."



- - Thomas I. Palley, assistant director of public policy and economic research for the AFL-CIO, in his April, 1997, Atlantic article "How to Re-Write Economic History". Palley's Atlantic cover story, "The Forces Making for an Economic Collapse," appeared in July, 1997.

www.theatlantic.com/past/docs/issues/97apr/econhist.htm

The rigging of the CPI/COLA calculations following the Boskin Commission in the 1990's, resulting in current CPI calculations which have resulted in zero Social Security COLA's for at least 2 years in our current "no inflation" era, did not stop the Simpson Bowles Commission from recommending a repeat of the same fraudulent strategy.


Nor has it lessened the appeal to "leaders" of both parties.







The question remains:

Will the "constituencies they claim to represent" again bend over?









:kick:

[woo me with science]

1. Excellent post, as always. You missed a line I think you meant to boldface though:

This, however, would occur at the expense of working Americans and the elderly.


It is sneaky, and it is evil, and it is exactly how they will reduce SS benefits while claiming not to have "cut" them directly.

I have already seen several posts on DU brazenly challenging other DU-ers to "define a cut."

[indepat]

13. Sneaky, evil, and obscenely depraved in the wake of BHO's tax cuts

for the uber-wealthy and Bubba's calling a cut in corporate tax rates. But Americans can't seem to come to grips with the fact, the reality, that this once government of, by, and for the people, has evolved into a pure de fascist government. :patriot:

[corpseratemedia]

24. +1

[woo me with science]

2. K&R nt

[no limit]

3. Thanks for this post, K&R

[CaliforniaPeggy]

4. K&R for your thoughtful post...nt

[jtown1123]

5. Chained CPI is a massive cut

Don't let anyone tell you otherwise...

Trust, seniors will not forget and will never vote to reelect Obama.

[fasttense]

6. Changing the CPI is just another way to cut benefits.

The chained or C-CPI-U would be 2% to 3% lower then the other CPIs if used over the last 5 years. How special. Pretending to support Social Security but allowing grandmothers to eat cat-food every day instead of once a week.

[Aerows]

39. And the CPI isn't accurate even now

It's always been a smokescreen. Anyone that has been grocery shopping can tell you that inflation is a hell of a lot higher than stated.

[Fuddnik]

7. Rigging the CPI numbers.

Article by Kevin Phillips from "Bad Money"


http://www.tampabay.com/news/article473596.ece

Ever since the 1960s, Washington has gulled its citizens and creditors by debasing official statistics, the vital instruments with which the vigor and muscle of the American economy are measured.

The effect has been to create a false sense of economic achievement and rectitude, allowing us to maintain artificially low interest rates, massive government borrowing, and a dangerous reliance on mortgage and financial debt even as real economic growth has been slower than claimed.

The corruption has tainted the very measures that most shape public perception of the economy:

• The monthly Consumer Price Index (CPI), which serves as the chief bellwether of inflation;

(snip) must read.

[WinkyDink]

8. More war $$$$$$$$$.

[myrna minx]

9. K&R n/t

[chill_wind]

10. K & R and a chart

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=103x611991

[rucky]

11. So for Wall Street, we have QE to protect against imaginary inflation.

and for the rest of us, a retooling of the CPI to cover up real inflation

[Vincardog]

12. OK lets link Congressional raises directly to the same CPI

[somone]

14. Very important point

Thanks!

[EC]

15. With 80% saying to increase taxes on the rich

where does this guy get the idea that raising taxes is unpopular?

[amborin]

18. but a majority wanted a public option, too....

[savannah43]

33. From his corporate owners.

DC pols act like it's their job to do what is best for their owners and not what the real people want. Apparently, real people are supposed to fund everything with their taxes. If we get nothing for our tax payments, why can't we, too, like the wealthy, pay nothing? Oh, wait, that's what Grover Norquist wants--starve the government and let dirty greedy weasels like him and the Koch Bros. run wild. Kill the government by letting it starve to death. Rock--hard place. Which to choose, which to choose? I know! Somalia is open for new management. Let's make them go there.

[Starry Messenger]

16. k&r

[nc4bo]

17. K&R

These people are going to do whatever they want regardless of the cost to the vulnerable.

They know an all out attack on our social programs will be seen as unacceptable to the masses so it's disguised and hidden.

How devious.

[woo me with science]

19. Kicking again. nt

[woo me with science]

20. This is how they will cut SS while claiming not to have cut it.

Pay attention, folks.

[Octafish]

21. When anything out of the grocery store worth buying costs $5, they think we won't notice.

Thanks for noticing, Faryn Balyncd.

K&R

[Cleita]

22. Thanks. Lack of COLA raises on my SS is already

taking its toll and not what the politicians anticipated. The little discretionary income that I had to throw to candidates during elections isn't there anymore. I hope they understand this when their campaign chests fall short of their Republican opponents.

[placton]

31. ditto

not that I am giving any money to Obama, DCCC, DSCC or the party anymore - better to buy some beer with my few bux to help forget about what they are doing to me, my kids, my grandkids,,,,

[FiveGoodMen]

23. If we'd gotten the Democrats that we thought we were voting for

They would be looking for ways to improve the lives of Americans.

They would not be looking for ways to get off the hook when they betray us!

[gateley]

25. Well put. And for that matter, the Republicans didn't get

the representation they voted for, either. Both sides have discounted us and are just playing the game. It's shameful. The goal is saving face and declaring a win, not, as you point out, looking for ways to improve the lives of Americans.

[DJ13]

26. This deserves a kick!

[russspeakeasy]

27. Professional wrestling at it's finest.

[drm604]

28. That article's from 1997.

Is someone talking about doing this now? I hope not.

[jwirr]

29. That is interesting. My COLA has never been more than $11 a month.

Who gets cola's besides social security people? At one time I heard that every time they raise people like me another $11 they are also raising all government workers right on up to the SCOTUS. Is this correct? Are the congress persons also in this raise? The military? Who is actually going to benefit by keeping the COLA?

Because of the small amount I always got - which was often taken right back when they raised medicare/medicaid premiums or HUD rent - I have never seen this as a bad way to cut it. The richer you are the bigger raise you get. It did not really effect me.

[savannah43]

30. How far can they lower zero? Because that

is what a COLA has been worth for the last two years. Now they're just making things up. Are they saying that they will reinstate COLA just to take a percentage of it? Why not just eliminate it entirely and forever and then pretend that all it would have cost has been saved? They can brag about that.

[Bluenorthwest]

32. It is supposed to keep your benfits up to the pace of inflation

So the point of the increase is to pay your increased rent. To keep pace with costs.
Changes are needed to make it do a better job at keeping your benefit buying power steady, not a worse job.

[jwirr]

34. HUD rent would have not changed. It is based on your income. Same

with the medical premiums. You report the increase and they go up automatically.

[cutlassmama]

35. K&R

[Blue_In_AK]

36. This makes me really angry.

In our household I pay the mortgage and the utilities (plus my personal credit card which I don't use much) and my husband pays for everything else. When I first started getting social security two years ago, my check plus what I receive from our tenant covered my part of the bills. Now it doesn't. This is even excluding the cost of food -- which I know has gone up substantially. I don't see how anyone can say that there hasn't been an increase in the cost of living. If my husband didn't have his (fixed) pension check (thank you, Marine Engineers Benefit Association), we'd be in a world of hurt.

I'm fighting to keep from having to raise my tenant's rent because she doesn't make much either, but I don't know how long I can hold out.

The government is so corrupt and no one's doing anything about it. It makes me sick.

[high density]

37. GOP gets their constituency trillions in tax breaks and war spending

Democrats earn their constituency trillions in cuts to programs to pay for it.

[Aerows]

38. The CPI is bullshit as it stands anyway

All they will do is just make it even less accurate. Anyone who grocery shops, pays their utilities and buys gas can tell you that the level of inflation is nowhere near as low as the CPI makes it seem. Those on medication will definitely tell you that pharmaceutical prices practically go up ever couple of months.

[RagAss]

40. Kicked and R'd

[Chan790]

41. Ugh.

I cannot even begin to formulate a response to this, after everything else, I'm just seeing red.

Never trust anyone who would willingly act to harm the elderly, children and the middle class to placate his cronies. Such a logical position to take. Instead, we vote them into high offices and are shocked that they screw us over.

The whole lot of them: useless, corrupt and stupid.

[Karmadillo]

42. K&R

nt

[chill_wind]

43. This is Biden's baby! Talks around it started 2 weeks ago

and Congressional Dems are "Shocked"?

I just read this tonight (hat-tip to zerohedge):

http://www.zerohedge.com/article/americas-latest-proposal-deal-its-insolvency-and-pursue-stealth-dollar-devaluation-change-cp


Story he refers to was dated 6/22:

http://www.tradesignalonline.com/charts/news.aspx?id=815113&filter=&catid=0

Those talks involve Democratic and Republican lawmakers from both chambers and are led by Vice President Joe Biden

[defendandprotect]

44. KR -- CPI has long been gimmicked -- and if Obama doesn't know that he shouldn't be in WH ..!!