President Obama has long been telegraphing his intentions to screw over Social Security and Medicare beneficiaries, so it was no real surprise last week when he proposed "chaining" the Consumer Price Index to reduce Social Security outlays. The impact will be small initially, with the average retiree's check reduced by only about $40 the first year. Over time, however, the impact will be much more significant, and 20 years into the future, recipients can expect to earn nearly $1,000 less than they would have without the chained CPI gambit. Given that the vast majority of Americans are already positioned to enter their golden years vastly unprepared to finance the costs of old age, after three decades of stolen pensions, two decades of interest rates on savings at or near 0%, nearly one decade of slumping home values, and a stock market deflating from one bubble after another on a near continual loop, it's a highly questionable priority to intentionally reducing their purchasing power even further. Kossacks are right to be outraged at Obama about it. However, chained CPI remains a distant second place on the list of the most despicable items in Obama's budget, and there's been virtually no Kossack outrage about the most awful item in this budget or any budget.....yet another doubling of the federal cigarette tax.
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