Earthquake. Although we don’t know the death toll of this horrible event in Haiti, the estimates all have six figures. We periodically get reminded that we live on a ball of rock that is still molten hot inside, causing the cooler earth on top to shift – a physical memory of the traumatic history of this earth’s fiery beginnings. Earthquakes, like meteors and supernovas, are as far from human influence as you can get. This was simply bad luck, of epic proportion. What’s worse of course is that this particular earthquake hit where humans are very vulnerable. Thankfully, we, and much of the world, are providing at least some support.
Small businesses see less rosiness. One dimension of this economic recession is that opinion seems to drive results as much as facts. We care more about how the facts “compare to forecast” than the actual facts. Considering that forecasting has a terrible track record, this emphasis on opinion seems misplaced. But here’s the bad news. Small business owners still have low opinions of the economy. The “Optimism Index” (run by what is called NFIB) indicates small business CEO’s are still pessimistic. They’re worried most about future taxes and government mandates. As proof of pessimism, they are not restocking shelves. Additions to inventory are at an all time low, and capital expenditure plans are at a 35 year low.
A scary government spending statistic: In 1999, the Federal government spent $30,360 a year per senior citizen on Social Security and Medicare. Today, it’s 78% higher per person, and the Census Bureau is estimating a 79% increase in senior citizens over the next two decades. That 78% increase can’t be just inflation – consumer prices are up 29% in the same period.
RE: A Scary Government Statistic. I think we should consider downsizing the old geezers, there’s just too darn many of them… and more on the horizon! Looking at the picture from a senior’s point-of-view…Medicare is not free, I pay $149/month for it. Also, as an employer, I’ve paid double Soc. Sec. tax for me and my employees throughout my career and never will recover my own original “investment” to the government. I’m not sure what point you were trying to make, but it might be interpreted as age bias.
It’s just a statistic – cost of these particular government outlays is going up faster than inflation, and the population on which it is based is going up in number. There’s no hidden message – just some bad news math about cost.