Fiscal Cliff Discussion

[StrangeSox]

The "more realistic CPI" is a Social Security benefits cut. Call it what it is.

[StrangeSox]

In Medicareland, it gets more complicated, but that sort of long-term slowing of growth should be the mindset.

 

Obamacare purports to do this. Is it worthwhile to wait and see if it will actually work and if the CBO health care growth estimates are accurate? Because if it does and they're somewhat overstated, a whole lot of our future deficit problems go away.

 

Get people back to work, and bend the health care cost curve. That's where our deficit problems lie.

[NorthSideSox72]

The "more realistic CPI" is a Social Security benefits cut. Call it what it is.

Of course it is. Who said otherwise? I was just pointing out that it is a benefit cut for FUTURE benefits, as opposed to taking cash out of the economy NOW.

 

[Balta1701]

Of course it is. Who said otherwise? I was just pointing out that it is a benefit cut for FUTURE benefits, as opposed to taking cash out of the economy NOW.

You're stretching the definition of "Future" a lot. That'd be a benefit cut starting next year (as well as a middle class tax increase btw, since tax brackets are also linked to the CPI). When I think of "Future" in terms of retirement programs, I think of the kinds of 20-30 year projections that suggest problems down the road, in the future. Not "12 months from now" when the economy is still struggling to absorb this year's spending cuts.

 

(Oh, and just to note...this is on top of the fact that the retirement age is increasing by 2 years this decade as well, so there's already a benefit cut happening as we speak).

[StrangeSox]

You're stretching the definition of "Future" a lot. That'd be a benefit cut starting next year (as well as a middle class tax increase btw, since tax brackets are also linked to the CPI). When I think of "Future" in terms of retirement programs, I think of the kinds of 20-30 year projections that suggest problems down the road, in the future. Not "12 months from now" when the economy is still struggling to absorb this year's spending cuts.

 

(Oh, and just to note...this is on top of the fact that the retirement age is increasing by 2 years this decade as well, so there's already a benefit cut happening as we speak).

it's a very marginal cut in the next few years, which is why it's silly to even bring up in relation to a short-term deficit deal (not what nss did). it's damaging due to compounding interest over time.

[StrangeSox]

Of course it is. Who said otherwise? I was just pointing out that it is a benefit cut for FUTURE benefits, as opposed to taking cash out of the economy NOW.

When politicians, the media, and special interest groups like Pete Peterson and the rest of the deficit scolds talk about it, it's an "adjustment" or a "technical fix." They get to advocate cuts without actually calling them what they are.