"Chained CPI" is the new favourite piece of economic political jargon.
The consumer price index (CPI) is a measure of inflation that is used to calculate cost-of-living-increases for programmes like Social Security. The "chained CPI" is a different method of calculation that presumes that when the price of one product goes up, people will simply buy something cheaper. Using this formula to calculate Social Security, veterans' benefits, and other programmes would amount to a benefits cut. Economists and politicians make pretend that it is just a technocratic adjustment, really, instead of what it is.
What it actually does is change the adjustments for cost of living according to "behaviour". If the price of beef goes up, and some people start eating cheaper chicken instead, then instead of measuring actual inflation (as reflected by the rising cost of meats), the Chained CPI measures the behaviour of moving from beef to cheaper chicken and lowers the cost-of-living adjustment. In other words, screw what you want to eat, what you like. You're buying the cheap stuff (and in Europe it is probably horsemeat !)
It is austerity politics of “personal” choice imposed on the elderly and lower-income rather than just straight-up cutting their monthly allowance. What if people do not want to eat chicken instead of beef? What if you want a steak? Those desires are simply off the table for people living on government programmes. You forfeit your right to prefer the tastier better food or the pleasure of fresh organic vegetables from the farm, or a night out at a restaurant. Subsistence level is good enough for the poor! The poor do not get to want nice things - if they have nice things, they are not really poor, and they must be cheating the system. The wealthy want to place a stigma upon those of us relying on government hand-outs bit not on those who got bank bail-outs from the government.
Our rulers want to change the meaning of the word"entitlements" to one that conjures up the image of people who are mooching off the rest of us, feeling “entitled” to our money without having worked for it. People are being demonised for daring to want nice things while relying on government assistance. The rich praise the virtues of sacrifice and the willingness to live on less, not for themselves but just for us lesser mortals.
The consumer price index (CPI) is a measure of inflation that is used to calculate cost-of-living-increases for programmes like Social Security. The "chained CPI" is a different method of calculation that presumes that when the price of one product goes up, people will simply buy something cheaper. Using this formula to calculate Social Security, veterans' benefits, and other programmes would amount to a benefits cut. Economists and politicians make pretend that it is just a technocratic adjustment, really, instead of what it is.
What it actually does is change the adjustments for cost of living according to "behaviour". If the price of beef goes up, and some people start eating cheaper chicken instead, then instead of measuring actual inflation (as reflected by the rising cost of meats), the Chained CPI measures the behaviour of moving from beef to cheaper chicken and lowers the cost-of-living adjustment. In other words, screw what you want to eat, what you like. You're buying the cheap stuff (and in Europe it is probably horsemeat !)
It is austerity politics of “personal” choice imposed on the elderly and lower-income rather than just straight-up cutting their monthly allowance. What if people do not want to eat chicken instead of beef? What if you want a steak? Those desires are simply off the table for people living on government programmes. You forfeit your right to prefer the tastier better food or the pleasure of fresh organic vegetables from the farm, or a night out at a restaurant. Subsistence level is good enough for the poor! The poor do not get to want nice things - if they have nice things, they are not really poor, and they must be cheating the system. The wealthy want to place a stigma upon those of us relying on government hand-outs bit not on those who got bank bail-outs from the government.
Our rulers want to change the meaning of the word"entitlements" to one that conjures up the image of people who are mooching off the rest of us, feeling “entitled” to our money without having worked for it. People are being demonised for daring to want nice things while relying on government assistance. The rich praise the virtues of sacrifice and the willingness to live on less, not for themselves but just for us lesser mortals.
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