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View Diary: Fiscal cliff discussions break down after Republicans demand Social Security cuts (249 comments)

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  •  That depends on how they set the limit on the (4+ / 0-)

    marginal rate of substitution.  Set it wrong and you get things like substituting animal/livestock feed for normal food or substituting a meditation book from the library for blood pressure medication.  After all, you technically can live on nothing but rice and multivitamins yet few people would consider that an acceptable substitute for regular fruits and vegetables.

    You have watched Faux News, now lose 2d10 SAN.

    by Throw The Bums Out on Sun Dec 30, 2012 at 02:32:32 PM PST

    [ Parent ]

    •  this is ridiculous (1+ / 0-)
      Recommended by:
      Seneca Doane
      substituting animal/livestock feed for normal food or substituting a meditation book from the library for blood pressure medication.
      that isn't how it works.  The BLS has extensive information about how they determine this.  
      •  Well, I couldn't find anything on the site that (0+ / 0-)

        shows what they consider an acceptable substitution for the various Chained CPIs.  While I agree those examples are ridiculous I couldn't find any hard and fast rule that would prevent them.  Like I said, a rule that set a limit on the marginal rate of substitution would definitely have that effect though it is possible they have other more stringent rules as well.  Got any direct links?

        You have watched Faux News, now lose 2d10 SAN.

        by Throw The Bums Out on Sun Dec 30, 2012 at 08:56:48 PM PST

        [ Parent ]

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