Here's a good one: The CPI "overstates inflation" and SS COLAs are out of line

[Slimprofits]

On the NYT website, they've posted an 'interactive' budget cutting tool. This one nugget caught my eye.

http://www.nytimes.com/interactive/2...oices=zzxj15qz

Use an alternate measure for inflation

Some economists believe that the Consumer Price Index overstates inflation, giving Social Security recipients larger cost-of-living increases than necessary. This option would use a different, lower inflation measure both for Social Security and in the tax code (thus pushing more households into higher brackets over time). Supporters say the lower measure is more accurate. Opponents say it is less accurate for the elderly, who buy a different mix of goods and services than other households.

No one involved in the political process says that the CPI doesn't accurately account for the true cost of living for regular folks.

I'm not sure if this is one of the recommendations from the Deficit Commission, but it's out there, it's meaningful. Despite what people see around them and experience on a daily basis, the government and those in the periphery of policy making will attempt to mislead them.


http://www.cbpp.org/cms/index.cfm?fa=view&id=2951

http://www.urban.org/retirement_policy/sscola.cfm

http://www.highbeam.com/doc/1P2-850414.html

[zoog]

Re: Here's a good one: The CPI "overstates inflation" and SS COLAs are out of line

They've already tinkered with the CPI calculations twice in the past 25 years, each time trotting out "experts" to claim the CPI overstates inflation. Is this the lead-up to a third round of monkey business?

"We've always been at war with Eastasia"

[BK]

Re: Here's a good one: The CPI "overstates inflation" and SS COLAs are out of line

Check out the Background on one of the Economists - a Career Government person - so she is right in her world there is No Inflation thanks to a Federal Government Pay/Benefits package that keeps pace with inflation. One Economist/Author spent 25 with the Congressional Budget Office - you can betcha that she has a fabulous Federal Pension in her future ......and before the Congressional Budget Office she worked for the Dept of Labor and Social Security Admin....I'd bet she has a 30 year Federal Pension in her not to distant future.....she thanks god every day that she didn't wind up in the Private Sector!

Kathy "let those old people eat Cat food" Ruffing- http://www.cbpp.org/cms/index.cfm?fa=view&id=2951
"Ruffing spent 25 years at the Congressional Budget Office, where she analyzed a wide range of topics including interest costs and federal debt, federal pay, immigration, and Social Security. Upon her departure, the Congressional Record praised her as a dedicated public servant who worked tirelessly to advance the legislative process and whose analyses displayed the best characteristics of CBO reports: impartiality, clarity, and comprehensiveness.
Before joining CBO, Ruffing spent several years at the Department of Labor and the Social Security Administration. More recently, she helped launch a budget study at the National Academy of Sciences.

[LorenS]

Re: Here's a good one: The CPI "overstates inflation" and SS COLAs are out of line

Having been in the Army, I know how the government pay scales work.

You may not get a "raise" in a given year, but "promotions" are guaranteed by your length of time on the job.

I started as an E-2, PFC came automatically upon completion of Basic training (8 weeks). After AIT and another year or so I got SPC-4 (~corporal).

After ROTC, I was 2nd Lt., the promotion to 1st Lt. was also automatic based on time, not even in service since I was IRR (inactive) when I got promoted. Once back in I was promoted to Captain - again just as a matter of course - I hadn't even had a platoon command, but was now supposedly "qualified" to command an entire company.


At my company, when pay is frozen so are promotions. I don't think it works that way in .gov land.

[don]

Re: Here's a good one: The CPI "overstates inflation" and SS COLAs are out of line

There's a reason civil servants, especially at the federal level, are bribed with virtually no-fire positions and just-enough promotional goodies to keep them complacent. Think of them as the black piano players in the whorehouse of Washington. Essential but FIRE-walled from the big bucks.

[c1ue]

Re: Here's a good one: The CPI "overstates inflation" and SS COLAs are out of line

There's a reason civil servants, especially at the federal level, are bribed with virtually no-fire positions and just-enough promotional goodies to keep them complacent. Think of them as the black piano players in the whorehouse of Washington. Essential but FIRE-walled from the big bucks.

I guess it depends on what your definition of big bucks is.

From LorenS's example: were he to retire as a captain, I'm sure there is a not-insubstantial pension. More importantly, the other retired (Naval) captain I know has full military health care.

For bureaucrats, it probably isn't quite as good - but then again they do also get pensions and the right to participate in the Federal Government's health programs.

Both pensions and health care are not small benefits in these times.

[thriftyandboringinohio]

Re: Here's a good one: The CPI "overstates inflation" and SS COLAs are out of line

Having been in the Army, I know how the government pay scales work.

You may not get a "raise" in a given year, but "promotions" are guaranteed by your length of time on the job.

I started as an E-2, PFC came automatically upon completion of Basic training (8 weeks). After AIT and another year or so I got SPC-4 (~corporal).

After ROTC, I was 2nd Lt., the promotion to 1st Lt. was also automatic based on time, not even in service since I was IRR (inactive) when I got promoted. Once back in I was promoted to Captain - again just as a matter of course - I hadn't even had a platoon command, but was now supposedly "qualified" to command an entire company.


At my company, when pay is frozen so are promotions. I don't think it works that way in .gov land.

Civilian Govt Service used to work much the same way.
Right out of college I was GS-09 junior civilian engineer at Air Force. Though I only stayed a year, I knew my job's target grade was GS-12, and knew the full schedule for each promotion and the pay of each. It was essentially automatic promotions to the target back in 1987.

[don]

Re: Here's a good one: The CPI "overstates inflation" and SS COLAs are out of line

I guess it depends on what your definition of big bucks is.

From LorenS's example: were he to retire as a captain, I'm sure there is a not-insubstantial pension. More importantly, the other retired (Naval) captain I know has full military health care.

For bureaucrats, it probably isn't quite as good - but then again they do also get pensions and the right to participate in the Federal Government's health programs.

Both pensions and health care are not small benefits in these times.

Their political function outweighs their costs. Besides, it's public funds. Think that's a factor in meeting the political elites need for rank-and-file minions to govern?

[LorenS]

Re: Here's a good one: The CPI "overstates inflation" and SS COLAs are out of line

From LorenS's example: were he to retire as a captain, I'm sure there is a not-insubstantial pension. More importantly, the other retired (Naval) captain I know has full military health care.

For the record -- there is a Huge difference between a Navy Captain and an Army Captain.

Army Captain = O-3
Navy Captain = O-6 = Colonel in the Army

If you retire as a Captain in the Army, either you had an awful lot of enlisted time or you're a serious screw up. Retiring as a Captain from the Navy is very commendable.

[thriftyandboringinohio]

Re: Here's a good one: The CPI "overstates inflation" and SS COLAs are out of line

As I recall the US armed forces have a maximum time-in-grade, up-or-out policy.
No such thing as a 57 year old first lieutenant (O-2) or airman first class (E-3).