Chained CPI: 4 Opinions From the Press

It’s not only politicians who have mixed reactions to a different way of calculating cost-of-living adjustments to Social Security benefits. Newspaper editorial writers and columnists are conflicted, too. The chained consumer price index, included in President Obama’s budget proposal, would mean that seniors’ checks would go up a little slower each year. The chained CPI assumes that as prices go up, consumers buy cheaper substitute goods to make up for it. Here’s how it’s playing among the mainstream press’s opinion …

5 Reasons Chained CPI Is Bad For Social Security

David Certner is the Legislative Counsel and Director of Legislative Policy for Government Affairs at AARP. Congress and the Administration are considering, as a means of deficit reduction, a legislative change to the consumer price index – the so-called “chained CPI.” This change would have a particularly negative impact on Social Security benefits – here’s why: 1. Chained CPI compounds over time.  As a result of a chained CPI, there will be a 0.3% annual cut in Social Security cost …