The first thing we need to do to get our economy back on track is to get accurate figures from our government. Soon, our government officials start believing their own misaligned figures. Gov. Pat Quinn says the unemployment rate is down from 9 percent last year to approximately 6 percent this year. He failed to mention that more than 300,000 people were taken off the unemployment list because they are not looking for work anymore. That is not the same as a person having a job paying taxes, etc. Where do the 300,000 get their money for food and shelter?
If you believe the inflation rate of about 1 percent a year and 0 percent in three of the past four years, I have some land in Florida I’ll sell you. In the consumer price index, they don’t count food, fuel and medical expense. Medical expense is counted as 1 percent of the average family expense. We are retired and I bet real estate taxes, food, fuel and medical expenses are about 95 percent of our budget.
Pension plans are designed to work with an interest rate of about 3.5 percent plus anticipated inflation rate. With a CD rate of 1/2 to 1 percent, you cannot save enough for retirement.
About 200 years ago, about 90 percent of the people were employed producing food, fuel and clothing. Today, less than 2 percent of the farmers produce all the food we need. Where are the other 98 percent going to find work?
Walter J. Steffens