November 20, 2012
In a statement issued today, 250 Ph.D. economists and more than 50 social insurance experts with doctorates in related fields expressed their opposition to proposals aimed at reducing the Social Security cost-of-living adjustment by tying it to an index (the chained CPI-U) that does not reflect the spending patterns of beneficiaries. Tying the COLA to a chained CPI would result in a 3 percent benefit cut after 10 years and a 6 percent cut after 20 years. It would have the greatest impact on older retirees and disabled beneficiaries, who are often the poorest beneficiaries.
The initiative was led by economists Dean Baker, J. Bradford DeLong, Heidi Hartmann, EPI President Lawrence Mishel, William E. Spriggs, and sociologist Eric R. Kingson. For more information and to read the full statement and EPI’s press release, click below:
STATEMENT: No empirical basis for reducing the Social Security COLA (pdf)
FULL ANALYSIS FROM EPI: Budget battles in the lame duck and beyond