2016 Postmortem
Showing Original Post only (View all)About "the" chained Consumer Price Index ... [View all]
Everyone is all hair on fire about the mere mention of a Chained CPI, as a concession in the "cliff" negotiations, as it would have the elderly eating catfood. Not knowing a lot about Chained CPIs, I let google, and the media, be my friend.
What I found was that the Chained CPI that everyone is talking about would cost the typical beneficiary about -2.6% per year under what the current CPI model provides. That comes to about $126/month ($1,500/year) in Cost of Living increases after 20 years. (Source: David Cay Johnson; TRMS, 12/18/2012) It
But what I, also, found was that there are several "Chained CPI" models, including a "Chained CPI-E" that is specifically designed to apply to the elderly. (http://www.annuitydigest.com/cpi-e/definition) According to DCJ, this model would actually increase the cost of living adjustments for its beneficiaries by $158/month (after 20 years) over what the current CPI model provides.
If I, now, know this, having spent about 40 seconds on the google and listening to a 5 minute interview ... don't you think the Democratic negotiators might also know this? Especially after thinking about what Pelosi actually said about the Chained CPI "Concession"?
http://www.huffingtonpost.com/2012/12/18/nancy-pelosi-fiscal-cliff_n_2324042.html