Clinton And The Cpi Mess
This is the story of the CPI mess. By now, the basics of the controversy are well known. There’s broad (though not universal) agreement among economists that the CPI–the government’s main price indicator–overstates inflation. Last fall a commission of economists appointed by the Senate Finance Committee and headed by Michael Boskin of Stanford put the overstatement at 1.1 percent a year (with a range of 0.8 to 1.6 percent). What Congress and the president must decide is whether–and how much–to alter the automatic indexing of Social Security, other government benefits and the income tax to the CPI....