Obama Lets Slip Plans for Chained CPI

Indeed, Social Security recipients are expected to get a 3% increase at the end of the year. And yes, that’s an automatic process.

>>What the President isn’t telling people is that he offered an alteration to that automatic COLA process, by going to chained CPI, that would result in a slower increase in benefits, and a de facto cut. So at the same time the President is explaining that the COLA is not in his control, he is hiding the fact that he wants to change the metric upon which it is based. In fact, he slipped and actually did mention chained CPI, in a roundabout way, at a second town hall in Alpha, Illinois. The President was asked about the payroll tax cap, and he answered that and went right to this “here’s why grandma didn’t get a COLA” talking point that he was obviously instructed to say, but he slipped and included a telling line:

Well, first—this is a very well-informed young man here. (Laughter.) You’re exactly right that the way the Social Security system works, there’s what’s called—there’s basically a cap on your Social Security, which there isn’t, by the way, on Medicare. But Social Security, it only goes up to the first $107,000; and you’re right, somebody who makes—who has net assets of $250 million and are making maybe $5 million a year just on interest or capital gains or something, just a fraction of it’s going to Social Security. I think there’s a way for us to make adjustments on the Social Security tax that would be fairer than the system that we use right now.

I do think, in terms of how we calculate inflation, that’s important as well. By the way, seniors — a bunch of them were upset over the last couple years because some of — because seniors didn’t get a cost-of-living adjustment. I got a lot of letters — “Mr. President, how come I didn’t get a COLA this year for my Social Security?” And I answered this question at the previous town hall; I figured I’d clear something up now. The way the system works is you automatically get a cost-of-living adjustment based on the inflation rate. The President doesn’t make that decision; it’s based on a formula.

more here: http://news.firedoglake.com/2011/08/19/obama-lets-slip-plans-for-chained-cpi/

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And your right on the money!

though, does he?

>>But the President does make decisions on the formula, in consultation with Congress, and he tells you right here, he wants to change the formula for how inflation is calculated. Over time, that would become a net benefit cut of up to $1,000 a year for older Americans. With any luck it won’t go any further. But the President has a clear interest in it.

that politicians think we are all stupid and can't figure out that they are only telling half truths.

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...since 1996 and the Boskin commission.

You can attack it on statistical grounds, or on fairness grounds, or on political grounds.

But it's not a secret. Not particularly recent. And not designed to bone old people.

sucks, and yes, it is designed to and will 'bone' old people, as you so gracefully put it. It is not something a Democrat should favor, in my book a person who does is not a Democrat. That is why the President plays greasy sly boots with the subject rather than just stating what he means. Weaseling Grandma.

Nothing to get all worked uP about, it's nothing new and not meant to bone its victims:

--should she live to be 95, that goddam well fucking DOES bone old people.

nothing to bring down the deficit. Since SS is a separate fund, and cannot affect the Fed Govt's borrowing and spending, all it will do is keep more money in the SS Fund. Now, at a time when the poorest people need a little more, he is taking away from them. And for no logical reason.

In fact, any 'cuts' and this is a cut, to SS only has the potential to INCREASE the debt. If the SS Fund grows by hoarding the money through cuts, it will only mean the Fed Govt will borrow MORE from it, increasing the debt.

Who is advising this president? SS should not even be a part of this discussion. It has no bearing on it, other than the American people being owed by the Spenders who caused the huge debt, the MIC, Wall St who got bailouts paid for by borrowed money, and those who caused the Financial Meltdown.

I would like to hear his explanation for this cruel policy as far as it having any positive effect on the Economy. It will have an adverse effect if any.

Also, what SHOULD be done, is to RAISE SS Benefits and the COLA right now. That would put more money in the hands of people who actually spend it and it would not cost the Fed Govt a dime since it is their money to begin with and neither he nor Congress has any right to be taking it away from those people who earned it and need it.

Why is he doing this? Has anyone asked him?

Of course Obama wants to go to a chained CPI. It cuts social spending. Now, if he really, actually wants to raise the cap, and finds a way to do that, then the overall SS payout can be increased. That's the wishful thinking that's still buried deep down inside me.

:shrug:

doncha know...Teh List!!

/sarcasmo

...and I have yet to see him talk about it anywhere else either. He has talked about Social Security quite a bit, as that is part of the job, and people ask him a lot lately, but there is nothing in that article or anything else that he has said that suggests he has any intention of "slashing Social Security", and no suggestion that resembles going to a chained-CPI formula.

On the other hand, there's nothing wrong with being hyper-vigilant about it either, as Social Security is basically in decent shape now, but making up stuff about the president's intentions serves no purpose other than to aid the GOP in their own efforts to make up stuff about the president's intentions.

Yeah that could happen