A change in the way the federal government measures inflation could cut the deficit by 211 billion dollars over ten years. It has faced political opposition … mainly from liberals … though its impact on the average American would seem to be minimal.
A recent editorial in U-S-A Today says many economists believe the consumer price index does not accurately measure consumers’ behavior as prices rise and fall. A so-called “chained C-P-I” would be more accurate, they claim.
The proposed new version would raise 62 billion dollars as certain tax breaks pegged to inflation would grow slightly slower. On the spending side, the new formula would slow annual cost-of-living increases for various programs, including Social Security. The average recipient would see a few dollars-a-month difference.
My wife and I do not receive any federal benefits now, but will likely draw Social Security checks in the future … after a life-time for both of us in the work place. We have no problem with switching to the “chained C-P-I” to help with our nation’s fiscal problems.
Our thought for today is from Charles DuBois:
“The important thing is this: To be able at any moment to sacrifice what we are for what we could become.”