Back to Up to Us: NYU

What is the index used to measure the cost of living in Social Security calculations?

  • CBO (21% people answered this)
  • CPI (75% people answered this)
  • OMB (3% people answered this)

28 people answered.

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Correct answer is: CPI

The CPI is the consumer price index and is used to calculate cost of living to determine payments to Social Security recipients. There has been recent debate over whether to use chained CPI in calculations instead, which would factor in the assumption that, as the price of one good increases, consumers will purchase a similar, less expensive commodity instead. However, opponents argue that retirees would receive 3% less over their lifetime if chained CPI was implemented, which would harm the low-income recipients most reliant on Social Security.

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New York University is participating in Up to Us, a nationwide competition to educate and engage campus communities on the issue of our federal government’s long-term debt. NYU is competing with 9 other schools—such as Brown, Georgetown, and U Texas—to win this nonpartisan competition. First prize is $10,000 and the judging panel includes George Stephanopoulos, Chelsea Clinton, Erskine Bowles, and Alan Simpson.  Up to Us is a partnership between Net Impact, Clinton Global Initiative University, and the Peter G. Peterson Foundation (http://www.itsuptous.org/). If Up to Us: NYU wins, we will be donating the prize to charity, such as Food Bank of NYC or Hurricane Sandy relief.


Our campaign will kick off on 1/28. Keep an eye out for our tabling and programming events! Participate in our Great Giveaway to win prizes such as giftcards to your favorite local restaurants. 



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