The Geezers and the Future

The Times has an article today arguing that Social security is in worse shape than we know, because the actuaries at SSA don't have a good grasp on demographics.  The authors present a lot of graphs and seem rather convincing.

However, I've my own theory, based on simple economics, so it's probably wrong.   

Everyone points to the facts that the baby boomers are getting older, and mostly they're living longer, while the working population is not increasing as fast.  The result is each geezer dependent is and will be supported by fewer workers, meaning the taxes on the workers will have to go up to provide the pensions the geezers have been promised.  That seems sound logic.

But, the geezers don't and won't live on their pensions, not on paper money, they will live on bread and butter and real things, produced by real people during the days and months they're living.  So what happens?  If I understand economics, when the supply (produced by workers) gets small, and the demand (from geezers with fat pensions) is large, the effect will be to boost the wages of the workers.  That should bring more workers into the system, whether by geezers finding it rewarding to work longer or to work parttime, or by workers having two jobs and working overtime, or by immigrants coming into the country.

The one problem I see is the indexing of pensions for inflation, because this process of adjusting the economy would go a lot faster if the pensions weren't indexed.  Perhaps the alternative will be for workers to be paid in intangible benefits, stuff which benefits them and makes work more attractive but which doesn't get reflected in the cost of living indexes.  Is that what's happening in Silicon Valley, with all the fringe benefits? 

Peak Oil, Not So

Sharon Astyk writes well.  She does locavore/food movement things, while raising a family and taking in foster children. She and her husband have big hearts, for which she deserves much praise. She's also  a peak oiler, who has in the past predicted gloom and doom: our economy is falling apart, running out of oil, etc. etc. This year though she's decided not to make predictions.

I think this is a sign of the wisdom which comes with age.  I'm sure wisdom comes with age, it doesn't have much else to recommend it. 

Walt Jeffries: Always Helpful

The Post had three articles on a couple who raised some pigs, then slaughtered them, exploring our relationship to food. Here's a link to the last one which begins:

The death we want for our animals is the one we want for ourselves: painless, instant, on a day like any other. Our three pigs took seven months to reach slaughter weight , and my husband, Kevin, and I had been thinking about that slaughter for the duration. Painless. Instant. On a day like any other.

 Turns out Walter Jeffries was helpful.  As he also is here, at his Sugar Mountain Blog.

Whoops: a Wrong Forecast

"I continue to think that there is a higher probability that the 2012 Farm Bill will be passed before the end of this year than that the current farm bill will be extended. My reasons for this assessment include the broad agreement that currently exists in much of the two farm bill drafts, the concern over what a new budget baseline will mean for the farm safety net, and the potential use of the budget savings in the new farm bill to fund bi-partisan priorities. Of course, this assessment means that the House and Senate will need to compromise over the existing differences in the two draft bills."

That's from Illinois extension on Dec. 6.  A reminder: we often are too sure of our views.

Washington Times Criticizes RMA

Washington Times has an article criticizing the Congressional mandate for RMA to push crop insurance.

"...the RMA’s money is going toward educating farmers on how to make use of crop insurance, adding potential new customers to an already overburdened federal program that costs taxpayers billions of dollars each year, the agency’s own documents show."

Read more: http://www.washingtontimes.com/news/2012/dec/30/usda-agencys-largesse-grows-crop-insurance/#ixzz2GwjWgxb5
Follow us: @washtimes on Twitter

Unregenerate Chauvinist: Big Hair, Nice Legs

That's my chauvinist reaction to the departing commander of the Space Station.  See her on Youtube here conducting a tour.

Who knew Sunita Williams held the record for space flight for a woman? And lots of other facts at Wikipedia.

John Phipps and the Fiscal Cliff Package

John says farmers made out like bandits.

Sept Extension of Farm Bill

Apparently the legislation which passed the Senate extends the 2008 farm legislation through September, although some disaster provisions weren't included. Sequestration is delayed for 2 months.  If it comes into effect, I think it hits direct payments.  

[Updated to reflect passage]

Bureaucrats and Civil Servants

Other English-speaking countries seem not to have the prejudice against bureaucrats we have in the US.  Based on Google alert, in the US it's a pejorative term, while in other countries it's more descriptive.

In India, there's even a horoscope for bureaucrats (hat tip Marginal Revolution).

Round Bales (of Cotton, Not Hay)

The cotton growers have discovered the virtues of round bales, according to this.  The piece mentions the changes ginners have to make, but nothing about the rest of the trade.  Back in the days of "King Cotton", we used to export bales on steamships.  I wonder whether we still export raw cotton today, and if so in what form?