CPI - RIP
'Great news! The Associated Press reported on Thursday that an unnamed Obama administration official (speaking on background) announced that the chained CPI will not be in President Obama’s budget. Just so we all really believed this signal, the White House Office of Legislative Affairs emailed out the AP story a few minutes later.
'This represents a victory for populists who want politicians to fight for the majority of real Americans facing tough economic realities at work and in retirement. Apparently the bad idea of means-testing Medicare will still be in the budget, but the disappearance of the chained CPI is a win to be savored and built upon.
'This should be chalked up as another triumph for the rising new populist electorate – and a powerful message to politicians that the old Washington game no longer works. It is harder and harder to do the bidding of powerful elites in the halls of Congress while pretending to be on the side of the voters.'