Much to the surprise of of those liberal Democrats who have not paid attention to anything the president has done or said over the past four years, the White House may support cuts to Social Security as part of the fiscal cliff negotiations with House Republicans.
Specifically, the administration suggested replacing Social Security's current system of annual cost-of-living benefit increases with an adjustment mechanism that relies on something called a chained Consumer Price Index, or "chained CPI."
Policy experts like the idea because the inflation formula currently used to calculate Social Security benefits fails to take into account substitution effects. That is, when broccoli becomes expensive, Americans spend more of their money on spinach, without necessarily increasing their grocery budget. Just kidding, Americans don't eat vegetables. In fact, it's easier to explain Chained CPI via Quentin Tarantino's Django Unchained and let you decide which is more palatable:
Chained CPI Django Unchained * Mainly terrifying to old white people, but also affects minorities and future retirees. * Terrifying to old white people. * Under Obama's proposal, saves the federal government $130 billion over 10 years. * Cuts deficit through taxes on ticket sales. * Trolls liberals by regressively cutting benefits. * Trolls everyone by coming out Christmas Day. * 60% of voters don't like the idea. * Matt Drudge gave it 7 n-words, though we're not sure if that means he likes it or not.
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Tags: Barack Obama, Debt, Fiscal Cliff, Movies, Quentin Tarantino, Social Security