Tag Archive for Chained CPI

“The Height of Outrage”, an Open Letter to President Obama on Chained CPI from CPEG’s Ron Baiman

Dear President Obama:

Please stop pretending that switching to a “chain linked’ CPI is, though unfortunately likely to reduce benefits, more “technically accurate” than the current “fixed basket” method of adjusting for the impact of inflation on social security benefits. It is not. It is more likely to result in an even greater underestimate of true cost of living increases for seniors than the current “fixed basket” method. You need to be honest with the American people and call this a “cut” and not try to camouflage this as a “technical fix” that more accurately implements the intent of the exiting Social Security program, as this is a “technical corruption” rather than an improvement of the method for estimating the impact of inflation on Social Security benefits for seniors, see Technical Postscript below.

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