Thursday, October 10, 2013

Unemployment 2013

I'm looking over unemployment numbers this morning. Part of why is I'm wanting to see if the Affordable Care Act is having any effect on hiring. That's of course the new health care law that's also known as Obamacare. It's starting to be reasonable numbers and the rate is dropping considerably. Even better, it's continuing to drop which is telling me the new law is having little effect on hiring.

For Colorado it was 7.0% for this August. At the high point in Aug 2010 it was 9.1%.

For the US 7.4% for this August. At the high point in October 2009 it was 10.0%

Now what's probably going to happen as the rate continues to drop is there will be a pressure effect on wages. Basically, employers will have to compete for employees so the wages they're offering will have to go up. That I did get from reading through Adam Smith's economic tome which could be a good sleeping pill with the way it's written.

I believe the wage pressures should start happening when the unemployment rate hits around 6.0% though I could be mistaken though I did see a few more recent indications it's started. It's also getting easier to find a job. BTW, if unemployment hits in the 3.5% range like it did I hope you have savings built up, the bubble is getting ready to pop. I do mean the national unemployment number, not the state one. States that have an agriculture basis have lower unemployment rates naturally. So, what I will recommend when you get that raise, or that new job, start saving even if it isn't much.

Wednesday, October 9, 2013

Klarissa Dreams

This was to get in my email the other day. Apparently, from what I've been told the book is due out the middle of next month. You will be able to find it in many bookstores is my understanding though I'm sure you'll be able to find it on Amazon also. I'm kind of wanting to go see it on a shelf  in one the physical bookstores it will be stocked at and know that I contributed to the stories that are a part of it. My piece goes along with the sunflower image and it's one the most amazing bits of fantasy I think I've ever written. The book benefits a good cause, I don't get anything out of it other than the pride of knowing I helped others.

Tuesday, October 8, 2013

National Debt

One thing you'll be hearing about soon, if you haven't already, is debt the US government owes and the fact they want to increase the debt limit. It's a huge amount, $17 trillion and counting. Most of us could never spend that amount no matter how hard we tried, however, the US government has.
Now, that number isn't quite so large when you consider the debt to GDP ratio. That’s actually a little more in the reasonable range. GDP stands for Gross Domestic Product. That number is 73%. It was higher. But since we've started coming out of the Great Recession the economy has grown which has reduced that ratio. Theoretically, the percentage should keep going down as the economy continues to improve.
Basically the smaller the ratio is the easier it should be to pay off the total debt. With a larger GDP there are more taxes collected and so on. Unfortunately we have Congress that's in charge of it and I doubt much will be done to actually decrease the total debt. It's kind of like a credit card that you've charged some things on. Instead of paying it off you allow the interest to keep accumulating which is what Congress has basically done. Now, you go buy more stuff on the same credit card. You can see where this is headed.

As a rule, you and I are limited to what our credit limit is. Congress however isn't. Could you imagine having the ability to set your own credit limit? It would never get paid by most of us. That's part of why the US governments debt is now $17 trillion.