Chained CPI: how it would really work
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By Ted Rall
Democrats and Republicans both want to reduce the deficit using an accounting gimmick called “Chained CPI.”
Under the Chained Consumer Price Index, increases in prices of products are ignored.
Instead, it is assumed that consumers downgrade their purchases to cheaper products when prices for those they currently buy increase to the point that they can no longer afford them.
Then the government uses these phony calculations to justify smaller cost of living increases to recipients of Social Security and other beneficiaries of programs indexed to inflation.