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Is Chained CPI the Wrong Solution to the Right Problem?
Government Executive: When President Obama releases his budget next week, it may include what some tout as an elegant solution to the nation's fiscal problems, a way of measuring price changes known as “chained CPI.”
The thinking goes like this: The debt needs to be reined in. Changes to benefit payments don’t accurately reflect the way Americans spend money. If you fix the benefit adjustments to make it so they do, you would raise money and put the government on a path to addressing the debt.
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