How Not To Fix Social Security

There is a wide spread idea that changing the way Social Security calculates its COLA is a painless way to fix the program. It is neither painless nor sufficient. It is a sign that what the program costs is more important than what the program does. Things to consider

1. Chain-CPI is not a better measure of inflation. It is not even a measure of inflation. It is a measure of Cost of Living - which includes the behavioral response to inflation.
2. The switch from protecting buying-power to protecting the cost of living is a reduction in benefits that grows over time. We are fixing old-age insurance with a solution that progressively lowers benefits as we age. That is like fire insurance which decreases in value based on the number of rooms in the fire.
3. Old-age insurance is important. As we age, our work options narrow and our savings is depleted. The older we get the more we need the program.

How Not To Fix Social Security