I hate the proposed shift to chained CPI for federal inflation calculation. It’s probably more accurate, but that’s no consolation for people who get smaller increases going forward.
That said, I think it’s important to understand that chained CPI wasn’t just thrown on the table by itself. The President’s proposed budget is a package. It includes significant tax increases and loophole closures targeting wealthy individuals and corporations, and its clear that his intent is to get beyond the endless nattering about debt and deficits so we can start rebuilding the country.
I don’t know that I agree with him about that, but I’ve always credited him with thinking big, and this is the kind of thing you get when someone thinks big. The kind of person willing to take on third-rail subjects like health care and tax hikes and guns and DADT and DOMA and infrastructure and energy and brain R&D initiatives probably isn’t ABLE to ignore an issue as big as the nation’s problematic balance of accounts. He has to try to do something about it. And he’s looking at those dates–not that far in the future, let’s be honest–when SS and Medicare start going broke, and he wants to fix that, too.
Personally, I’m with Paul Krugman in that I don’t believe the deficit is nearly as big a deal as most people seem to believe it is. I think the solution on SS and Medicare is simple: get rid of the income ceiling on contributions and charge FICA on every nickel people earn.
But everyone knows that isn’t going to fly. Not now.
I don’t like this proposal. And I don’t necessarily believe the President’s dogged effort to come to grips with the nation’s balance of accounts is as important as he thinks it is, especially in times like these. But to me it’s still clear he is trying to do what would be best for the country, as he understands it. So I won’t trash him for it and start in on Teh Big Lefty Stoopid about how he’s a closet corporatist blah blah blah.
I just think he’s wrong here. I think he’s making an error in perception, because what his base, the press and the opposition are seeing isn’t the integrated package he clearly intended to offer.
They’re just seeing naked Social Security cuts offered up, and that’s a tactical mistake.
At publication, the Dragon was NONPLUSSED