Why 'Chained CPI' Rattles the Elderly (and Soon to Be)
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It’s presented as a technical, politically neutral fix, but make no mistake: The Obama administration’s proposal to change the basis for Social Security raises to “chained CPI” is all about saving money by slowing the growth rate of benefits. Whether you think that’s a good thing or a bad thing depends on whether you believe workers have been paying too much to support their elders.
The federal government ties Social Security benefits to measured inflation. Chained CPI gives a lower measure of inflation. So using it would result in slower benefit growth. It’s that simple.