April 9, 2013 archive

Apr 09

Clap louder because it doesn’t even work.

Peter Orszag is among tne most despicable Clinton/Rubinite neoliberal Obamabot supporters.

What does he think about “superlative” CPI?

Why, it doesn’t go far enough.

Chained CPI’s Diminishing Returns for U.S. Budget

By Peter Orszag, Bloomberg News

Apr 7, 2013 6:30 PM ET

(T)he chained consumer price index, would lower the annual payment increases for Social Security beneficiaries, saving the government money as it lowers the future monthly income of retirees and disabled Americans. The change would also raise revenue over time because it would cause more taxpayers to wind up in higher marginal brackets.

What neither side seems to have noticed, however, is that the difference between the chained CPI and the standard CPI has been diminishing. That means the impact of switching indexes may not be as great as many assume. The change may still be a good idea, but it probably won’t matter as much as expected.

A decent guess is that, over the next decade, the effect on the deficit of adopting the chained index would be less than $150 billion. Social Security benefits even 20 years after retirement would be reduced by less than 2 percent. This does not amount to bold long-term deficit reduction.



Consider what future projections look like if we instead assume that the chained index will grow just 10 basis points a year more slowly than the current indexes. In that case, the deficit reduction from switching to the chained index would be less than $150 billion over 10 years, rather than $340 billion. And the reduction in the long-term Social Security deficit would be about 7 percent, rather than 20 percent.

This would make a pretty big difference in the effect on Social Security benefits. For an 85-year-old who began receiving checks at 65, checks would be about 2 percent less, rather than 6 percent if the chained index were to grow 25 to 30 basis points more slowly than the standard index.



President Barack Obama deserves credit for political courage in being willing to adopt the chained CPI — in the face of strong opposition from members of his party. But if switching to the chained index reduces the 10-year deficit by less than $150 billion and the 75-year Social Security actuarial gap by less than 10 percent, can a “grand bargain” built around it really be all that grand?

(Peter Orszag is vice chairman of corporate and investment banking and chairman of the financial strategy and solutions group at Citigroup Inc. and a former director of the Office of Management and Budget in the Obama administration.)

Apr 09

Cartnoon

Apr 09

When they open their mouths

Apr 09

On This Day In History April 9

Cross posted from The Stars Hollow Gazette

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

Find the past “On This Day in History” here.

April 9 is the 99th day of the year (100th in leap years) in the Gregorian calendar. There are 266 days remaining until the end of the year.

On this day in 1865, Confederate General Robert E. Lee surrendered his Army of Northern Virginia at the McLean House in the village of Appomattox Court House. In an untraditional gesture and as a sign of Grant’s respect and anticipation of peacefully restoring Confederate states to the Union, Lee was permitted to keep his sword and his horse, Traveller.

At Appomattox, Virginia, Confederate General Robert E. Lee surrenders his 28,000 troops to Union General Ulysses S. Grant, effectively ending the American Civil War. Forced to abandon the Confederate capital of Richmond, blocked from joining the surviving Confederate force in North Carolina, and harassed constantly by Union cavalry, Lee had no other option.

In retreating from the Union army’s Appomattox Campaign, the Army of Northern Virginia had stumbled through the Virginia countryside stripped of food and supplies. At one point, Union cavalry forces under General Philip Sheridan had actually outrun Lee’s army, blocking their retreat and taking 6,000 prisoners at Sayler’s Creek. Desertions were mounting daily, and by April 8 the Confederates were surrounded with no possibility of escape. On April 9, Lee sent a message to Grant announcing his willingness to surrender. The two generals met in the parlor of the Wilmer McLean home at one o’clock in the afternoon.

Lee and Grant, both holding the highest rank in their respective armies, had known each other slightly during the Mexican War and exchanged awkward personal inquiries. Characteristically, Grant arrived in his muddy field uniform while Lee had turned out in full dress attire, complete with sash and sword. Lee asked for the terms, and Grant hurriedly wrote them out. All officers and men were to be pardoned, and they would be sent home with their private property–most important, the horses, which could be used for a late spring planting. Officers would keep their side arms, and Lee’s starving men would be given Union rations.

Shushing a band that had begun to play in celebration, General Grant told his officers, “The war is over. The Rebels are our countrymen again.” Although scattered resistance continued for several weeks, for all practical purposes the Civil War had come to an end

Apr 09

Muse in the Morning

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Muse in the Morning


Circuit

Apr 09

Late Night Karaoke

Apr 09

NCAA Men’s Basketball Tournament 2013: Final

Results

Seed Score Team Record Region Seed Score Team Record Region
(1) 72 Louisville 34-5 Midwest 68 (9) Wichita State 30-9 West
(4) 56 Syracuse 30-10 East * (4) 61 Michigan 31-7 South

Matchup

Time Network Seed Team Record Region Seed Team Record Region
9 CBS (1) Louisville 34-5 Midwest (4) Michigan 31-7 South

Apr 09

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