Chained CPI = counpounded interest, only in reverse

[eridani]

Instead of compounding a positive addition to your wealth, you compound a negative one.

There is a far better alternative, the CPI-E.

http://www.atouchofgrey.com/cola.html

The next question obviously is what can be done to have the CPI accurately reflect older Americans living expenses? Well, believe it or not, in 1987 Congress took a positive step toward correcting the way the CPI is calculated. Responding to the criticism of senior groups, Congress amended the Older Americans Act of 1965.

The Bureau of Labor Statistics was ordered to come with an experimental CPI that would better reflect the buying the buying habits of consumers 62 years and older. A new experimental CPI was born called CPI-E that accurately shows what older adults actually spend their money.

[Syrinx]

1. I've been wondering what the whole "chained" thing was about

But have so far been too lazy to understand it. Thanks for the link!

[Hoyt]

2. To be fair, this is an old article. Back then, Medicare did not cover prescription drugs for example

I too would like to see an objective study of the cost of living, rather than just a bunch of political BS.

[Pholus]

3. Any CPI enacted will definitely NOT match the actual needs -- that would cost MORE, not less.

CPI is a way to cut, not help, in the current environment.