From: Mary RAY Henslee ('61)

Sandstorm Extra that might be political

Re: Political ? Extra

I actually wrote the entry that follows some weeks ago, but
decided to put it on the backburner because I wasn't sure if it
would be of interest or fit into the scheme of things. I only
decided to take it out of mothballs after I saw others discussing
the state of our economy and how different aspects of it are
affecting us all. I personally don't think that any of the recent
entries deemed to be political are all that political in nature,
but then again everyone's perception of things is different. If
someone has some expertise on a subject that affects us all, I
say why not let them speak regardless of what the subject may be.
Why not learn from each other as adults in the same way that we
learned from each other as kids. In any forum, not everything
discussed is going to be of interest to everyone all of the time.
So you scroll and move on. Either we do that or we put Maren in
the middle, which isn't fair to her.

Anyway, here goes with my entry regarding the state of our
economy in general and the state of our Social Security system
and golden years in particular. I could be wrong, but I think
most everyone will find something in it of interest if not all of
it.

ENTRY:

I saved an article that appeared in the newspaper back in 2006
that I think everyone should see because it helps to know just
how unpredictable the yearly Social Security adjustments can be
before calculating them into one's financial plan. Once you
review the yearly Social Security adjustments from 1975 to 2006
shown on the attached graph and stop to think about the non-
existent to nearly non-existent adjustments that we have seen
since 2006, I think that you will find it hard not to question
where the so called experts come up with their figures sometimes.
The 1.7 percent increase coming in 2015 is a good example of how
the adjustments aren't always in sync with the real cost of
living increases.

(Insert a link to the attached Yearly Social Security Adjustments
Graph - Thanks Maren)
  http://AlumniSandstorm.com/Xtra/Ray/141227-SSgraph.jpg

As you can see from the graph, when we had inflation during the
'70s and early '80s, the Social Security adjustments were between
10 percent and 14 percent. To top that off, we were getting up to
10 percent interest on our savings. The only difference that I
can see between the inflation of yesteryears and now is that this
time around we're being told by economic gurus that there is no
inflation. The insanity of it all prompted me to write a poem
entitled "Do We Have Deflation or Inflation?" to show how badly
things have spun out of control over the last 10 years or so. The
following are a few verses from that poem as they appear in my
book entitled "Poems and Essays Reflecting the Times" on Amazon:

In 2000, interest rates were raised to fight inflation Even
though indicators pointed to impending deflation.

In 2001, interest rates were lowered to fight deflation Even
though indicators pointed to impending inflation.

In 2003, interest rates dropped to a 45-year low And now
skyrocketing prices are all that we know.

The Feds say only small rumblings of inflation can be heard;
Somebody really does need to give them the word.

Just how high does the cost of living have to go Before the Feds
decide that interest rates are too low?

My golden years find me peddling words for cash and wondering
what others are doing to compensate for slashed dividends, CDs at
.02 percent, and anemic Social Security adjustments. Things that
no one could have predicted or planned for.

Maybe some of you economic majors out there can make sense of it
all because I sure can't.
 
-Mary RAY Henslee ('61)
****************************************************************