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Home Publications Blogs Beat the Press Charles Krauthammer is A Short Term Thinker

Charles Krauthammer is A Short Term Thinker

Friday, 12 April 2013 15:18

Charles Krauthammer is not impressed with President Obama's proposal to cut the cost of living adjustment for Social Security. He complains:

"First, the proposal — “chained CPI,” a change in the way inflation is measured — is very small. It reduces Social Security by a quarter of a penny on the dollar — a $2,000 check reduced by a five-dollar bill."

This is a correct statement (or almost correct statement, the Social Security Administration estimates the impact 0.3 percent annually) on the first year impact of the cut. However the impact accumulates over time. After ten years it would be between 2.5-3.0 cents on a dollar or $50-$60 on a $2,000 check. This is a considerably larger hit to the typical beneficiary than the typical high income taxpayer would see as a result of the increase in tax rates last year.

It is also worth noting that a $2,000 monthly check would put this person near the top of the distribution of beneficiaries. The average check is a bit over $1,200.

Comments (6)Add Comment
written by ltr, April 12, 2013 4:21
Proposing to cut Social Security and Medicare benefits is shameful, completely shameful, and as far as I am concerned I will actively oppose any Democrat who supports such a proposal.
Mr Arithmetic Takes Another Victim
written by Last Mover, April 12, 2013 5:16
It's understandable that Charles Krauthammer is not impressed with Obama's proposal to cut SS, the same way many are not impressed with Krauthammer's intelligence.

The first time one hears Krauthammer, given the way intelligence is measured, the effect of reduced intelligence is very small, say a few IQ points in the first year.

However the impact accumulates over time and after ten years Krauthammer sounds like a kid who never graduated from high school because basic arithmetic was just too much to grasp by one who barely knows the difference between more and less.
ST Thinker?
written by James, April 12, 2013 7:41
How about advocate for the wealthy?

To him and many others, any cut that's felt by the working people is minimal or nothing.

Any cut to the benefit enjoyed by the wealthy such as the their estates, patent, is unacceptable and devastating to the economy.

Not sure if that's ST thinker or simply I am for the rich!
Kraut is a Faux Noise stooge.
written by jumpinjezebel, April 13, 2013 10:53
What else do you think he's say. If Obama breathes he's against it.
Krauthammer's disability
written by melontete, April 14, 2013 6:51
I wonder how many government programs Krauthammer has taken advantage of during his long term disability. The typical attitude of people like him is "I got mine. Now lets clamp down on the moochers". Very similar to Paul Ryan using Social Security money to pay for his college education and now trying to cut it for everyone else.
written by julie, April 16, 2013 9:23
Charles Krauthammer is the ONLY clear thinker out there. If we only had more people like him in Washington (who are a bunch of leaches by the way), our country might be in a better place. This applies to both sides of the isle I might add. I just returned from there last week and they are NOT feeling the crippling economy like the rest of the country. I travel extensively for business. Believe me, they are having a good ole' time in D.C. spending your money!

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About Beat the Press

Dean Baker is co-director of the Center for Economic and Policy Research in Washington, D.C. He is the author of several books, his latest being The End of Loser Liberalism: Making Markets Progressive. Read more about Dean.