11/2/09 Ron Paul's Texas Straight Talk: Government Statistics and Lies

http://www.house.gov/paul
http://CampaignForLiberty.com

There has been a lot of talk in Washington recently about senior citizens, mostly about how various healthcare reform models would help or hurt them. But there is another critical issue that has quietly devastated seniors financially over the last few decades. It concerns how the cost of living is calculated. How does the administration justify not giving a cost of living increase to Social Security recipients this year?

According to the official Consumer Price Index calculation, life has gotten cheaper for the first time in decades. If the government can show statistically that the cost of living has gone down, not up, then they can make the case for not giving a cost of living increase to social security recipients. But does this match reality? Using older calculations of CPI, the cost of living has actually increased by roughly 5 percent!




The CPI (Consumer Price Index) is a calculation based on the average price of a fixed basket of goods that was initially designed to help businesses adjust for inflation. The government eventually started using it to determine cost of living adjustments for entitlement programs. Couple that with politicians discovery that they could raid the social security trust fund to pay for new spending programs, and you have a perfect storm to deny seniors what they were promised, while hiding the true size of the deficit. For politicians, it is a win-win.


For seniors, it is a different story. Economist John Williams of Shadow Government Statistics has estimated that if the original methodology of CPI had not changed, Social Security checks would be nearly double what they are today. This represents a lot of money that politicians have been able to literally steal from seniors, to spend on their own wasteful programs. One example of how they do this is to substitute hamburger for steak, which lowers the average price of that basket of goods. But living on hamburger, or maybe dog food, instead of steak does not represent a constant standard of living. This renders the measurement virtually meaningless, even though politically it comes in very handy.


I have introduced legislation to keep politicians in Washington from ever raiding the Social Security trust fund again. HR 219 The Social Security Preservation Act would assure that all monies collected by the Social Security Trust Fund would only be used in payments to beneficiaries, or be placed in interest bearing certificates of deposit. This would at least stop the bleeding of the fund, and take away some incentive to tease and torture the numbers in order to give seniors the minimal amount. This would also cut off a source of funding for government growth, so it is not likely to get easy support from many politicians.


It is bad enough that Washington imposes high payroll taxes on American workers. The least Congress could do is use the tax dollars for their stated purpose. Instead, seniors will have a harder and harder time trying to survive on a fixed income in an economy based on variables and deception. For them, it is too late to start over. Todays young people will be forced to pay into the system for years to come. The first step towards solving the impending crisis facing Social Security is to stop politicians from raiding the trust fund and to significantly cut federal government spending.

Category:

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• lies

[Akillesblood]

Ron Paul = The only Truth in Politics! END THE FED

Ak

[BeenInACaveWayToLong]

Mr. Paul. What is needed at this point is cohesive leadership.

What is needed is your encouragement and direction in regards to what the public needs to do to get 1207 supported, intact.

There are far more than enough supporters ready to act. The need is for you to instruct them to activate. You make the call... Designiate their next move for support!

What is sufficient to get this Resolution passed by the house? Just lead them and they will follow.

[dougat]

Now why would I give seniors an increase when I can put it in my pocket and order up hookers, drugs and drinks. Geez! I have to keep up my standard of living ya know!!! Now bring on the party and starve the poor! Thank You! I'm happy and that's all that matters. Phew!

[cyclesingsleep]

Thank you for posting these. And, thank you Ron Paul! I'm only 30, but you are the FIRST politician I've ever heard who is intelligent and speaks from his HEART. You are totally consistent. Before you, life had taught me that it was a FACT that ALL politicians were crooks without any strong, anchor of inner truth or principles guiding them. They would do something amazing at one point and then completely contradict it the next. YOU DON'T - THANK YOU!

[ronheri]

One of the very few honest politicians in Washington. We need this great man in the White House...2012

[studabaker6]

I want to marry Ron Paul.

[UnderseaCaveman]

I must be crazy, crazier than a loon.....cuz, there's only one Politician that I can hear loud and clear, and making sense....

I must be crazy....cuz, millions of others don't hear the logic.... If they did, Dr. Ron Paul would be Prez right now... yeah, I am crazy!!!

[Akillesblood]

fourth we take some of the money that we spend on our empire while cutting other needless projects i.e. War on drugs and we boost the social security. simultaneously while we are actually paying off our debt. ;) END THE FED

[Akillesblood]

He is but There is a correct way for abolishing it. According to RP, abolishing it would be after the economy got back on its feet. This would come in a step by step process. First we END THE FED. Second stop policing the world. Third circulate sound money vs Fed money then sound money wins cuz its actually based on silver and gold rather than nothing at all.

[MengersDisciple]

Here's the must read Shadow Stats primer Dr Paul is referring to:

tinyurl (DOT) com /hedonic-thrills

Excerpt:

"That new washing machine you bought did not cost you 20% more than it would have cost you last year, because you got an offsetting 20% increase in the pleasure you derive from pushing its new electronic control buttons instead of turning that old noisy dial, according to the BLS."

[linnx88]

You are correct, I'm in the same emotional state. However, I do not believe America has fallen enough for there to spring a true people's revolution. But, it is coming, and there is NOTHING they can do about it. I pray it is quickly resolved and things that need to be done are finally done to take back this nation into the hands of the people and not a corrupt, evil oligopoly of the worst sort of human beings!