Sep 25, 2012

Sanders Warns Of Post-Election "Grand Deal" To Switch To Chained CPI

     From Sam Stein writing at Huffington Post:
Concern is mounting among some Senate Democrats that President Barack Obama will make a deal with Senate Republicans during the lame-duck session that would result in changes to the benefit structure of Social Security....
[According to Senator Bernie Sanders] "unless we stop it, what will happen is there will be a quote-unquote grand bargain after the election in which the White House, some Democrats will sit down with Republicans, they will move to a chained CPI."

Chained CPI, or consumer price index, is an alternative measure of calculating inflation that would lessen the cost of living increases for Social Security payments. When the president and Speaker John Boehner (R-Ohio) attempted to craft a deal on the debt ceiling last summer, Obama offered the chained CPI as a concession.
     Chained CPI sounds boringly technical but it would be a significant cut in Social Security benefits.

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