Question

A newspaper article once reported that the U.S. economy was experiencing a low rate of inflation. It said that "low inflation has a downside: 45 million recipients of Social Security and other benefits will see their checks go up by just 2.8% next year." a. Policymakers link increases in Social Security and other benefits to inflation because they are hoping to get more people in the U.S. interested in topics like inflation. they cannot link benefits to the stock market because of the Great Recession. the Bureau of Labor Statistics lobbied to link benefits to inflation in the 1980s. they wish to ensure that the real value of these benefits is constant over time.

Answer 1

In current time, the categorization of social insurance edges to the CPI has return beneath extended inspection. several officials and teachers have claimed that the CPI exaggerates worth variations for separate merchandise and facilities, whereas others have interrogated the methods wont to mix these variations into associate mixture live. aware of those variations, some have advised that social insurance edges be familiar employing a price level that imprisonments the defrayal conducts of grownup Americans. Since the first Nineteen Eighties, the BLS has intended such subordinate index: the buyer price level for senior customers (CPI-E). This investigation index has ne'er been wont to modify edges, conversely, and whereas many legislative assembly bills are advance on the topic, none has approved.