Article IV, Part Third, Section 14 of the maine State Constitution

Article IV, Part Third, Section 14 of the Maine State Constitution says:

Corporations shall be formed under general laws, and shall not be created by special Acts of the Legislature, except for municipal purposes, and in cases where the objects of the corporation cannot otherwise be attained, and, however formed , they shall forever be subject of the general laws of the state ( emphasis mine)

Quote from the legislative Charter for Brunswick Landing Maine's Center for Innovation : The Midcoast Regional Redevelopment Authority is established as a body corporate and politic and a public instrumentality of the State to carry out the purposes of this article. The authority is entrusted with acquiring and managing the properties within the geographic boundaries of Brunswick Naval Air Station. [2009, c. 641,
§1 (AMD).]
1. Powers. The authority is a public municipal corporation and may:D. Exercise the power of eminent domain; [2005, c. 599, §1 (NEW).]


Monday, June 17, 2013

The Chained Comsumer Price Index

I am taking a short break  from my story line to report of several other issues of import. the first being the new accounting method which the government has devised to calculate increases in the cost of living. Based on this new accounting devise alone, The government can now report that the rate of increase in the  cost of living is on the decline.

The new method is call Chained Consumer Price Index.  It is in the newly proposed budget for Maine but I believe that the source is the federal government:

This Part suspends the inflation adjustment for income tax brackets for tax year beginning in 2014 and 2015 and provides that the inflation adjustment calculation for tax years beginning after 2015 must be based on the Chained Consumer Price Index instead of the Consumer Price Index

Here is my layman's analysis based on this article:
Measuring Up:The Case for the Chained CPI
Moment of Truth Project, by Adam Rosenberg
Marc Goldwein
Updated December 12, 2012

One of the first thing ones learns is that without changing anything- such as the amount of paper money printed up by the federal reserve- that by using a Chained Consumer Price index instead of the standard consumer price index, the rate of cost of living increase magically decreases, Based on my quick perusal of the article linked above, this is done by calculating in changes in consumer spending habits- so if the consumer used to buy a certain item but found that they could no longer afford to do so because the purchasing power of their dollars would no longer accommodate such an item- and if the consumer then substitutes a lower cost item for the item they formerly purchased, then by using the Chained Consumer Price index, the cost of living did not go up as much as it did if the standard consumer price index is used . It is called a Chained Consumer Price Index because the index is calculated by chaining months together so that if in one month the consumer purchased the more expensive item but in the next month the consumer found a lesser expensive item- the cost of living increase will be calculated as less by using the Chained Consumer Price Index. This allows the government to report that the cost on the purchasing power of every one's money isn't as much as it used to be when the state takes worthless federal money and distributes it into the economy via benefits to targeted sector elite.

Using this accounting gimmick- without changing anything else, the government can then report that the rate of increase in the cost of living has decreased- thanks to all the ways that the consumer has found to make his dollar stretch a little further and the government doesn't have to change its own spending habits one iota to realize this improvement in the cost of living!