It is based on a concept called the “substitution effect” – which assumes that when the price of one good goes up, a consumer will substitute a lower-cost alternative in its place (e.g., when the price of steak goes up, a person will buy hamburger instead). For Social Security and SSI beneficiaries who are struggling to make ends meet as it is, there’s no room for substitution – and no room for benefit cuts. Benefit cuts under the chained CPI would push beneficiaries to make impossible choices such as not paying the gas bill to afford the water bill, taking half a pill instead of a whole pill, or eating two meals per day instead of three to afford the cost of a copay on a needed medication.
Low-income seniors and people with severe disabilities are already struggling and can’t afford cuts. Send this email to Congress to tell them NO on the chained CPI, and to keep Social Security cuts out of any budget plan. For AARP’s chained CPI calculator, click here.
SNAP is a great program – boosting food security, health and nutrition and lifting millions out of poverty and millions of others out of deep poverty. But as a National Academy of Sciences Institute of Medicine expert committee just found, for most families benefits simply aren’t enough to afford a healthy diet for the month. This means that the program isn’t doing as much for food security, poverty reduction, child development, disease prevention and health care cost containment, as it could. Read More