Bold progressive Congressman-elect Alan Grayson (D-FL) just publishedAi??a long Facebook note protesting Obama’s endorsement of the chained CPI to cut Social Security and veterans benefits. He labels the proposal as “undeserved, unwise, unfair.” Read the full note:
Let me get right to the point. I’m against the proposed “chained CPI” cut in Social Security because it substantially undermines the protection against inflation that Social Security recipients enjoy under current law. The existing cost of living adjustment (“COLA”) already understates actual increases in the “cost of living”; the chained CPI would exacerbate the problem.
I understand that the vast majority of Americans — including, quite possibly, most people reading this – have no burning desire to learn anything about the chained CPI. It has, however, become a major part of the “fiscal cliff” negotiations, and so it has become one of those things that people have to learn about, for their own protection.
Where we are now in the fiscal cliff negotiations is that Speaker Boehner is talking about reducing the federal deficit in the exact same way that Governor Romney did – Boehner says that he wants to, but he won’t tell us how. President Obama, boxed in by the poll-driven sense that he must-must-must propose something “balanced,” is “balancing” the reduction of tax breaks for the rich against the reduction of the protection that seniors have against inflation. On the merits, however, reducing that protection is undeserved, unwise and unfair.
Social Security benefits are automatically adjusted each year to reflect increases in the cost of living, as determined by the consumer price index (CPI). The U.S. Bureau of Labor Statistics calculates the CPI each month.
Here is how the “chained CPI” would change things: Let’s say that the cost of gasoline tripled, from …