Gene Sperling

Who is left after CPI Social Security Cuts supported by Gene Sperling and friends?

We are all inside that circle. If they had thought through the implications of what they planned to do with the Chained-CPI-Social Security cuts and cuts to medical care, they would have realized that everyone is affected in the end. In the final analysis we are all connected (from StrengthenSocialSecurity):

 ”Some policymakers are considering accepting a grand bargain that includes the chained CPI for Social Security. This is no minor technical change – it is a benefit cut that compounds to become very large over time. The chained CPI would cut the annual benefit of the average earner (someone making $43,518) by $658 at age 75, $1,147 at age 85, and $1,622 at age 95.1 The cumulative cut for that individual would be $4,631 – more than three months of benefits – by age 75; $13,910 – nearly a year of benefits – by age 85; and $28,004 – more than a year and a half of benefits – by age 95.2 “

Policymakers (Gene Sperling) promise to exclude “vulnerable groups”. Three groups are most vulnerable: Veterans. The Poor. The Eldest Elderly. In 2011, Social Security paid almost half of its benefits to these groups.

 $58.3 billion to people who are poor or near-poor (excluding those aged 85 and older);15

 $131 billion to those who are aged 85 or above (including veterans);16 and

 $176.4 billion to veterans and their families17 (net of the above two groups).18

This means that if a chained CPI is put into place which leaves out those groups, it can only affect a 50% smaller group. What is the point of making these cuts?

There are two other groups identified in the piece which have not been identified as vulnerable but which are vulnerable. The disabled and those over 55.  Include those two groups and you have completely removed the purpose of making cuts through a chained CPI. There’s no one left.

You can read the fact sheet HERE.

Photo by Financial Times released under a Creative Commons license.