Pros: Necessary increases don’t lag behind by 5 years and we don’t spend months arguing the pros and cons every time we need to increase it only to end up eventually increasing it.
Cons: Probably makes it harder to make small adjustments if needed due to factors other than inflation because people will say it will increase anyways and ignore that even if it will get a 5% increase, perhaps it will be necessary to increase it by 6%.
Sounds like an interesting approach. I don’t know much about economics though. Anyone know what the possible repercussions could be by doing this?
Pros: Necessary increases don’t lag behind by 5 years and we don’t spend months arguing the pros and cons every time we need to increase it only to end up eventually increasing it.
Cons: Probably makes it harder to make small adjustments if needed due to factors other than inflation because people will say it will increase anyways and ignore that even if it will get a 5% increase, perhaps it will be necessary to increase it by 6%.