A Little Economics 101

Did you see the Consumer Confidence Index this morning? Probably not and I would not have except for using it to get an attitude of the general public when I was working as a Forecasting Economist. It was the lowest in months and the fastest rate of decline ever. CNBC said that the reason for this was the continuing high unemployment rate. This is partially true in that it is the possibility of even higher unemployment in the near future.
President Obama has reintroduced the abomination called the healthcare bill. My retirement is from one of the companies that have a “Cadillac Plan” that is union. Unfortunately for me I was management. My current plan has me pay half of the raises in healthcare costs. Current payments I have to make total $212 per month to cover the last 6 years of increases. With the bill having a 40% tax on plans like mine even half will be around $2,700 for the first year. Lowering costs???? Not for me! Oh and by the way I make less then $50,000 per year. Guess we are going to be taxed even when we are middle class.
Now how is the Consumer Confidence Index going to affect employment? Without knowing how Healthcare will be paid for and the uncertainty of the proposals, no one is going to higher new people unless it is absolutely necessary. This is not the environment that supports growth. Anyone that has looked at the proposal can tell that most of the costs will not be covered by “savings”. This means a $2.7 trillion uncovered expense over the next 20 years! Who do you think is going to pay for this? If you make any money at all, you will. Of course the more you make the more you will pay, it is the Progressive way!