Corrente

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Changing The Name But Not The Game

TheMomCat's picture

Or as Shakespeare's Juliet said, "What's in a name? That which we call a rose; By any other name would smell as sweet." Not quite.

In this case calling chained CPI, "superlative CPI" to make it more palatable to the voters and politicians who oppose it as a cut to future Social Security benefit, does not make it any less noxious or toxic:

 photo 3c0e1f56-81f0-4e55-a9cb-8923c9d8f50a_zps88f0a4e7.jpg]
Click image to view it in full size

Spending savings from superlative CPI with protections for vulnerable $130 B

As Pres. Obama's idol, Pres. Lincoln said, "You can fool some of the people all of the time, and all of the people some of the time, but you can not fool all of the people all of the time."

No, Barack, we will not be fooled by you. Keep your hands off Social Security

Cross posted from The Stars Hollow Gazette.

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Comments

TheMomCat's picture
Submitted by TheMomCat on

That would really hold down the costs of Medicare. Blocking Medicare from negotiating drug costs was a sell out to Big Pharma and would balloon the cost to tax payers but it might have been the only way the Bush administration could get Medicare D passed. But then, I was astonished that it passed at all.

letsgetitdone's picture
Submitted by letsgetitdone on

Hi TMC, There is a "superlativeCPI ," but it's not "the chained CPI" which is really "the Catfood CPI." An actual superlative CPI, would cost adjust for the higher proportion of seniors' household budget they must spend on rapidly increasing health care costs. It would also adjust for living area. so that seniors who live in high cost areas, can remain there if they choose, rather than moving to lower cost areas where their meagre SS pensions don't go very far. In the real world, living costs in New York City are 2 1/2 times more than living costs in say, rural Kansas or the UP of Michigan. SS payments should be adjusted for these important regional differences.

TheMomCat's picture
Submitted by TheMomCat on

It would be nice if he, or someone in his administration, explained this to those of us who have been inundating his phone lines and e-mail, as well as those of every congress critter.

Thanks for the explanation. I'll up date.

TheMomCat's picture
Submitted by TheMomCat on

Just thinking about this ... Why have they kept saying "chained CPI"? Or is it just the MSM? I know I would ask if I had access to the WH press briefings.

Alexa's picture
Submitted by Alexa on

ask "how" you were able to upload or post the PDF version (that opens and expands) in this comment?

Please, if it's too complicated to explain, could you possibly steer me toward a reference (link) to the instructions/application.

BTW, here's an excerpt and a link to the explanation for the term "Superlative" CPI.

It was "invented" by BLS during the Bush Administration in 2002.

As a result, BLS has recently developed an alternative CPI, sometimes known as the “superlative CPI,” which takes into account the tendency for consumers to substitute products whose prices have increased more slowly for products for which prices have increased more rapidly. The BLS began to issue inflation estimates using both the traditional CPI and the new, superlative CPI in the summer of 2002. The superlative CPI is expected to rise, on average, about two-tenths of one percentage point less each year than the traditional CPI.

Thanks.

TheMomCat's picture
Submitted by TheMomCat on

I use FireFox as a browser and there is a "screen grab" ap. I upload that to Photbucket and "clean" up the image so it's readable. If I can I include a "click to enlarge image" or a link to the original page. In this case the .jpeg for the image is in a file that can be linked. It takes practice to capture the image, upload to & minor photoshop to make sharpen the script.

"Superlative" is beginning to sound like a cut for some seniors. It actaully sounds like a "means test" without the income verification.

Alexa's picture
Submitted by Alexa on

my luck would have it, it's been 'discontinued,' LOL!

Think I may have found a way (although it doesn't look as nice) around the issue, using my flickr account.

Another time that I've been "a day late, and a dollar short." ;-)

Alexa

lambert's picture
Submitted by lambert on

Here (for Mac and PC). This works on any window.

I like it especially because you can annotate the grab (as here) immediately and then save it out to a file in several formats. I've never felt the need to clean up a screen grab, but if I did, I'd use Gimp, which is like photoshop, but free.

Rainbow Girl's picture
Submitted by Rainbow Girl on

Great reference, thanks.

Now that we are all just a little more educated as to finance and things "budgetary and fiscal," and finally hip to how the most important decisions in our government are made with invisible technocratic maneuvers out of everybody's eye, reading this "white paper" (or whatever it is), is really chilling. Another Bush Special that waited for Obama to be deployed on a thermonuclear level against us, who have been the targets all along, for several decades.

Below is a snippet which I found particularly irritating for the pseudo technocratic neutrality of the jargon masking a very simple message that BLS had already succeeded in moving the Cat Food project forward with some "tweaks" to the inflation formula -- and that this new beast "superlative CPI" would complement and synergize with those other BLS changes to ensure huge "fiscal" (barf) benefits (for the government) on the backs of Those Who Paid Into The System all Their Working Lives.

_______

It should be noted that over the past decade, the Bureau of Labor Statistics has made a number of changes directly in the CPI that have significantly reduced the degree to which the CPI overstates inflation. [nice one][/nice] These changes, which in combination were more than twice as large as the change discussed here, have been non-controversial. They have been incorporated directly into the “official” CPI and have affected the annual adjustments in Social Security, other programs, and the tax code without arousing opposition or protest. For technical reasons, the Bureau of Labor Statistics cannot make the modest improvement reflected in the superlative CPI directly into the official CPI, which is the reason it developed the superlative CPI alongside the traditional CPI. Given the daunting long-term fiscal problems that face the nation, this is a change that should be made. If policymakers cannot agree to make a change such as this, how can they agree to the far tougher choices throughout the budget that lie ahead? [Note. They were already setting up the "Fix the Debt" Frames: "tough choices," "daunting long-term fiscal problems that face the nation [no, that face the Rentier Class who realized after the oil crisis that rent-seeking opportunities had narrowed considerable so new flesh had to be identified.] and so on.

I recommend a read. It is very short. If someone had put this document in front of me 6 years ago my eyes would have glazed. Now it is chilling and infuriating. All the more so because how many people directly affected by this form of domestic terrorism (the government against its citizens) don't have a clue?

smee333's picture
Submitted by smee333 on

Are you trying to say that it is not still a chained CPI? Because the way I read it, it most certainly is, but I guess since the "superlative" CPI plans to mitigate the pain--well, that must be acceptable? It isn't.

TheMomCat's picture
Submitted by TheMomCat on

I need to understand how this works any better than chained CPI and why it needs to be done at all. Will this cut SS payments for those not living in high cost of living states? There needs to be more discussion how this will work and why it needs to be done at all. I'm still a proponent of removing the cap, entirely.

Alexa's picture
Submitted by Alexa on

the Center on Budget and Policy Priorities (CBPP), they likely 'mitigating factor' in the President's proposal to adopt the Superlative CPI that he is willing to consider allowing SSI benefits to stay with the current CPI, instead of having the Superlative CPI applied to this benefit for the poorest Americans. Obviously, that would beneficial to SSI recipients. [And the very least that he could do, under the circumstances.]

But it clearly does nothing to shield the millions of other low income Americans, who don't qualify for this benefit.

Alexa

Alexa's picture
Submitted by Alexa on

Superlative CPI.

Have never seen this info. Could you possibly provide me a link, or steer me to the information. [I'm sitting in front of several file cabinets chock full of white papers, but I've never seen a reference to this policy.]

Are you saying that it has been proposed by some Administration? Or, is it your recommendation as an economist? {Sorry, been more dense than usual, lately, LOL!}

Thanks.

rexvisigothis's picture
Submitted by rexvisigothis on

I've already made plans to actualize a cost saving move to a third world venue. I hope the chained CPI doesn't start to take that assumption into account. I would have to find a widow with more kids to adopt, in order to respond with a higher multiplier.

rexvisigothis's picture
Submitted by rexvisigothis on

http://www.ehow.com/how_4995191_social-security-benefits-dependent-child...

I thought I was the first guy to figure this out, but apparently, not. This disquisition sets forth the drill more or less verbatim. The 18 year old widow of whom we spoke draws an additional dependent benefit, and continues so till the youngest child is 18, then resumes upon her reaching the regular age (which by that time will probably be 85, but what can you do...) The benefits multiply by the number of kids adopted plus the spouse. I have been cautioned, btw, that there are certain third world societies where the prudent patriarch is well advised to obscure the fact that his demise does not terminate, but indeed, liberates (as it were...) the payment.

rexvisigothis's picture
Submitted by rexvisigothis on

I would like the opportunity to superlatize my medication purchasing choices, as long as we are venturing into the chained cpi territory. viz, let me get my drugs (those few that I take which are legal--I know I'm on my own for the others, and don't get me started on the heartbreaks I have suffered over the years...) from the VA pharmacy. By mailorder if necessary, or walk-in where convenient. I'll even cheerfully throw in 10% for vig.

Turlock