Thanks for the response Rip. I read the info but although the article notes there has been weak growth recently in GDP there isn't much there to get excited about in terms of longer term prospects. Matter of fact, it cites that personal savings growth is at 0 (albeit up from dis-savings). Admittedly, I've never been a big fan of supply side economics. The fed has driven interest rates through the floor and will cut again today. There isn't much more room to use that tool. An related down side of these rate cuts is rising insurance premiums. The investment portfolios of the major players aren't affording much return these days to offset underwriting losses. Their solution is to increase premiums for this and other reasons. While we are on the subject of rate cuts, the feds decision to cut the capital gains rate on dividends will increase the cost of funding at state and local levels as their tax free status is no longer as attractive comparatively. Their having to offer higher yields (pay more interest to attract investment) comes at a time when most state and local governments are facing huge deficits. Like I said, I'm gloomy.
Syzy, if you are willing to write off social security, Medicare and Medicaid, then we've got some really big issues to address. The need doesn't go away. Perhaps nationalized healthcare is the solution but I'm not eager to go that route. The fact remains that the population curve is working against these programs anyway. Either we fix 'em or trash 'em and then, as good people do, we each assume the financial care of our elderly family members for living and medical expenses. Now for those who don't have folks to take care of them...well, I guess we'll have to rely on charitable contributions?
