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View Diary: White House: No Medicare age increase, cut Social Security instead (360 comments)

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  •  It's only a cut in American dollars (2+ / 0-)
    Recommended by:
    Jeffersonian Democrat, qofdisks

    as inflation makes them worth less, and less.

    Heck, if the Federal Reserve could just drive up inflation enough, and reduce the value of the US dollars seniors paid into the system to nothing, we could make Social Security "solvent" forever!  (They're working on it as we speak.)

    Get it?

    •  Sorry, this is not reality. Rates are at historic (1+ / 0-)
      Recommended by:
      indie17

      lows.  Real rates are below zero.

      I'm against the chained CPI myself -- I can't imagine a progressive or even a centrist Dem not being against it.  But it's not a secret plan to destroy us.  Just a bad idea or (hopefully) a negotiating position of some sort.  Obama's been offering it for years now and it hasn't happened.

      It's sure time to push, though.

      •  "Rates" are irrelevant. (8+ / 0-)

        This is not some grand economic construct. This isn't another bankster/Wall Street game. People need FOOD.  And those prices are sure as hell going up.  Go to the grocery store and compare the cost of a loaf of bread to what it was a year or two ago.  Or a can of soup.

      •  And that easy money supply by the Fed (0+ / 0-)

        is already causing commodity prices to go up.  Even with the slow economy.  (Check your gas and food bills.)  That inflation will only accelerate as the economy improves.  Low interest rates actually are making inflation worse, not better.  

        If Social Security doesn't go up to compensate for the lost purchasing power of the same amount of dollars, that is a very REAL cut in SS.  And that is exactly what chained CPI is designed to do.  Discount real inflation so we can pay seniors less.

        •  I think I agreed with you that the chained CPI is (0+ / 0-)

          a cut and that we should fight it.  But I'm doubtful that the Fed's easy money is the big cause of rising food or gas prices.  Or even that SS without these cuts is going to keep people fed.

          As Krugman regularly points out, the austerity freaks are consistently wrong in their predictions of inflation, which they use in an attempt to inflame the fear of the debt.

          There are lots of factors pushing energy & food prices higher.  For food, there's drought, diversion to bio-fuels, rising population, declining aquifers, destruction of farmland, more meat-eaters, etc.  For energy there's speculation, rising consumption all over the world, more expensive extraction, and the basic greed of Exxon & friends.

          All this will get worse over time, imo.  Then at some point it'll stop being just about prices and start being about supply.

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