CPI Unchained

It was very disappointing to read that Obama's present offer to the GOP to avoid  'falling off' the so called 'fiscal cliff', contains a really ugly 'cave in' to the deficit hawks - his innocuous sounding offer to 'chain the CPI'.  This means that the Cost of Living Allowances (COLA) that kicks in every year based on 'official inflation', the Consumer Price Index (CPI),  will be lowered.  First of all the CPI, as far as most people are concerned, understates the real rate of inflation they experience daily especially with regard to expenses on necessities like gas and food, commodities whose prices fluctuate greatly.  If  'chaining CPI' will save the government money, it means that the computation for COLAs have to be smaller - so they are really unchaining it to inflation. Another case of Orwellian doublespeak.  They will be rigging the CPI computations even more than they already do. This means COLAS will lag ever further behind actual inflation - not good! This will be especially painful if inflation comes roaring back as some predict. Some of the poorest people in the US are the elderly who rely solely on their Social Security checks to survive. So as time passes they will become ever more desperately poor.  Also all Federal government workers, whose morale is already in the toilet, will slowly loose ground as their pay is subject to annual COLAs as will retired Federal workers. It's not clear who will and who won't be affected. Will the the poorer SS recipients, disabled veterans, SSI recipients be spared and receive a higher COLA? Will this lead to means testing on those receiving SS benefits? Not good!

Going on over the "dreaded" Fiscal Cliff would be better than a sellout especially if the Repubs can be made to take the hit for the failure to reach an agreement. Obama's offer already sucks and buys into the right's devious intentions, and the Repubs still hate it. They hate it  because 'their boyz,' the gazillionaes, will get their tax rates raised back to the rates they paid in the 1990s, a tax rate that allowed most of them to get obscenely rich anyway!!  

A lot is at stake here. Many are unhappy with this concession by Obama and offer alternatives. Will he remove this odious offer or will more concessions follow? Or will Obama stand up against these crazed maniacs?  We shall see..