[Peace-discuss] Response from Rep. Rodney Davis on cutting Social Security with Chained CPI

[Carl G. Estabrook]

Excellent idea. Both Ann Callis (DCCC candidate) and George Gollin (independent Democrat) should be addressed on the matter. And so should Erika Harold, who may challenge Davis in a Republican primary. --CGE

On May 16, 2013, at 9:02 AM, Robert Naiman <naiman at justforeignpolicy.org> wrote:

> [When we met with staff in his Champaign office, we asked that he respond to us in writing stating what his position was on cutting Social Security by means of Chained CPI. He did respond in writing, but he did not say what his position was. Let's think about 1) ways to increase pressure on him to take a position 2) nailing down his Democratic opponents on the issue, which could help with 1).]
> 
> =============
> May 8, 2013
> 
> Mr. Robert R. Naiman
> 802 E. California Ave
> Urbana, IL 61801-4342
> 
> Dear Mr. Naiman,
> 
> Thank you for contacting me regarding your views on a chained consumer price index for determining Social Security Cost of Living Adjustments (COLA). I appreciate hearing from constituents in my district.
> 
> I believe we must keep the promises of Social Security and Medicare. Current and near retirees should receive their full benefits while future generations should have the peace of mind to know that these programs will be there for them as well. Elected officials must rise above politics, keep promises to current and near-retirees and save Social Security and Medicare for our children and grandchildren.
> 
> As you may know, the COLA is tied to the increase of consumer prices compared to the previous year, which is measured by the Consumer Price Index for Urban wage Earners (CPI-W). This is intended to reflect the cost of inflation. There is a misconception that the CPI-W does not include the cost of food and energy, but they are included in determining Social Security benefits.
> 
> There have been proposals to switch from the CPI-W to another measure, the Chained Consumer Price Index for Urban Wage Earners. This attempts to account for substation bias, which is when consumers purchase one set of goods because they have slower rising prices over their equivalents. Some economists believe this protects the standard of living by consumers during a time of rising prices and because CPI-W does not account for substation it can overstate how bad inflation is hurting consumers. As you know, President Obama has proposed switching to the Chained Consumer Price Index to make up for the deficit in the Social Security trust fund as part of his Fiscal Year 2014 budget.
> 
> I understand that you oppose switching from CPI-W to C-CPI-U. Be assured I will keep your opinion in mind if this issue ever goes before the full House of Representatives for a vote.
> 
> Please let me know if my office can be of assistance to you in the future. Also, if you are facing a challenge with a federal agency or are planning a trip to our nation's capital and would like a tour, please call or visit my website at www.rodneydavis.house.gov. It is truly an honor to represent you.
> 
> Sincerely,
> 
> Rodney Davis
> Member of Congress
> 
> -- 
> Robert Naiman
> Policy Director
> Just Foreign Policy
> www.justforeignpolicy.org
> naiman at justforeignpolicy.org
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