Current Legislative Proposals Roundtable

["Ronald F. Vetter" <rfvetter@ridgecrest.ca.us>]

Ron Gebhardtsbauer,

your actuarial expertise may provide me an answer to a question i have
been asking. actually,  believe that what i consider a poor choice - id
est, the annual entitlement adjustment (which is not a cost of living
adjustment; rather, it is introduction of wage-price spiral) has been
mathematically erroneous via the escalating of the basis for wage and
entitlement payment rates.

the escalation converts what would be lineal spiraling upward of wages
and prices into exponential divergence of incomes. Since there are
insufficient revenues to pay these subsidies (which are biased to favor
the highest-income recipient the most), the payments are made with new
money. this deflates the value of the dollar.

some of this is to be found here:
	http://www.ridgecrest.ca.us/~rfvetter/pages/cpiexpn.html

Ronald F. Vetter
2105 S. Camino el Caņon
Ridgecrest, CA 93555-7656-05
phone: 760/375-7263
e-mail: rfvetter@ridgecrest.ca.us
http://www.ridgecrest.ca.us/~rfvetter