Our view: Obama's "chained CPI" bad for Social Security, people
Espey: Obama’s ‘chained CPI’ proposal bad for Social Security, people
For nearly 78 years, Social Security has survived a barrage of attacks from Wall Street and conservatives. It’s also been strengthened and expanded to protect more of our nation’s elderly and disabled from the throes of poverty. And it has been hugely successful.
So it comes as a complete shock that yesterday – April 10th – a sitting Democratic president unveiled a budget that includes significant cuts to Social Security. These poorly disguised cuts come under the name of the “chained CPI.”Make no mistake – the chained CPI is a benefit cut for current retirees and future beneficiaries. It would change the formula used to calculate the cost-of-living-adjustment (COLA) for already modest Social Security benefits.
Some will claim this is a more accurate measure of inflation. They couldn’t be more wrong, especially when it comes to seniors. The current COLA, in fact, does not fully take into account the added expenses incurred by seniors and therefore should be increased – not cut like the President proposes.
Let’s look at the facts: Social Security, by law, cannot and does not add to the nation’s deficit. Its benefits are incredibly modest, averaging around $14,000 a year. And yet, Social Security keeps nearly half of our nation’s seniors from falling into poverty.
Given this, it is disturbing that President Barack Obama is throwing our collective security in retirement on the chopping block. Whether it is a political bargaining chip or something he truly believes must be done, he is mistaken on all fronts.
Obama seems to be searching for a legacy, and he is using Social Security recipients as pawns in a flailing attempt at cementing his place in history for striking a “Grand Bargain” with entrenched obstructionists in Congress.
The President needs to withdraw his chained CPI proposal, and then work to strengthen and expand Social Security for generations to come.
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