One of the least discussed, but potentially most significant, provisions in President Obama’s budget is the use of the “chained consumer price index” (chained CPI), to measure the effect of inflation on people’s standard of living. Chained CPI is an effort to alter the perceived impact of inflation via the gimmick of “full substitution.” This is the assumption that when the price of one consumer product increases, consumers will simply substitute a similar, lower-cost product with no adverse effect. Thus, the government decides your standard of living is not affected if you can no longer afford to eat steak, as long as you can afford to eat hamburger.
This should have been their centerpiece proposal during the last battle. They had the full attention of the country and could have put it to good use.
Watch the “net interest” percentage going forward as interest rates rise. That’s going to put a cramp in our lifestyle.
It appears that the White House has been secretly negotiating with large businesses as Obamacare has veered off down disaster road. The delay of the employer mandate has everything to do with the Obama administration’s buddies in big business saying that the program is half baked at best and that they can’t comply with the tangle of red tape. So Obama has punted, on this.
Now, however, it appears the administration’s bravado was all for show. At the same time Obama was expressing great confidence, White House officials were secretly meeting with representatives of big business to discuss ways to postpone enforcement of parts of the new law. And on Tuesday the White House announced that the employer mandate – sometimes described as a “crucial” element of Obamacare – will be delayed to 2015 from its scheduled start on Jan. 1, 2014.
But the administration knows that come what may it must start transferring money to taxpayers via the healthcare “exchanges.” They must increase reliance on the government.
The president has proposed using something called a “chained consumer price index” for adjustments (which are always up) to Social Security payments. It in theory lessons the current rate of increase. Liberal and progressives are beside themselves. How could President Obama do such a thing?
Every time I write about the need to reform Social Security people freak out. Suddenly supposedly small government folks fly into a rage at the idea that Social Security must be curtailed for the good of the country.
Hey, life isn’t fair. But we have got to do something about Social Security and the coming debt bomb.
Of course most seniors don’t consider Social Security theft, and the headline above is intended to be inflammatory, however the Social Security system we have now is completely unsustainable. It hurts many who are just struggling to make it in an economy which is very different from the rising tide many retirees experienced over the past half century.
Should generally poor young people be subsidizing often wealthy old people? That’s what happens in our present crony capitalist system.
Republicans are either working for the rich, not the poor or average person, or they are not. This is a way to reveal themselves one way or the other.
Grover Norquist’s no tax pledge, the pledge that the vast majority of Republicans have signed, is driving some people to fits.