What? a headline about a can of beans; how trivial, you may say. But have you purchased groceries lately? The forecasts of stagflation (some predicting inflation doubling) cannot be ignored. Some products like soybeans and sugarcane are already near double those of a few weeks ago and prices will soon be felt on store shelves.
Add inflation to 15 million unemployed workers and you get stagflation like we've never suffered before. Can you believe that President Obama claimed in a recent speech that he and his people have created 2.1 million private sector jobs? No wonder his remark was greeted with derisive laughter. Can this nation survive more of Obama? We have lost five million manufacturing jobs and there is no sign we are taking any action to replace them. Don't people understand that you must make a product or provide a service for an economy to grow or at least survive.
Public service employees, including federal, state and local, have escaped much of the bad times suffered in the private sector, but their day is coming. Promises of liberal retirement benefits are like social security in that they have huge unfounded liabilities. An economist has said that to meet pensions in the future will require $1400 from each household for the next 30 years. Workers should prepare for lower benefits in the future because there is no way citizens will agree with that.
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