Proposals to Adjust CPI

Re “Bipartisan Push Is Welcome to Fix a Flawed Price Index,” editorial, March 5: The congressional demand for a perfect consumer price index is in fact a subterfuge for something else: cutting Social Security benefits and raising taxes without taking the political heat for doing so.

For many years, the main use of the CPI for indexing was in union-management contracts. But those contracts virtually never specify that wages should rise by a full 1% for each 1% of the CPI. Rather, they use formulas that give on average something less than 100% indexing. And, more important, union contracts reopen every three years so that negotiators can make corrections if needed. In contrast, Congress would like a perfect index that can be left in place without political intervention until the last baby boomer is dead. Sorry to disappoint folks, but there ain’t no such thing. Congress should take the heat if it wants to adjust taxes and benefits. And the technical experts at the Bureau of Labor Statistics who issue the CPI should be allowed to work in peace.

DANIEL J.B. MITCHELL

Professor, Anderson Graduate

School of Management, UCLA