Word: costsâ
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After watching health-care costs??rise more than 60% in the past five years, most of America's 177 million insured workers are bracing for another dose of pain. As this November once again brings open-enrollment season--that annual headache of working out how much more of our paychecks will go to health benefits next year--2007 looks to bring no relief. For the average employee, premiums and out-of-pocket expenses will reach $2,904 a year for a family, up $300 from 2006. That's the pass-along pain of the costs that employers now endure, nearly...
...Military Officers often complain privately that the American people don't fully appreciate the costs???human or economic?of the Iraq war. A new paper by Harvard budget expert Linda Bilmes and Nobel-prizewinning Columbia economist Joseph Stiglitz may help address that. It claims that the final cost to the U.S. could be $2 trillion?10 times as high as the worst-case scenario of $200 billion suggested by a White House official before...
...rapidly and employers can raise wages without jacking up prices; the rise in output per employee will offset the higher costs. If productivity is flat, almost every dollar of wage gains is translated into price boosts. Over the decades, price rises have closely followed increases in employers' unit labor costs???that is, wage gains minus productivity...
These price increases are of course reflected in the monthly costs of owning a home. The costs???including mortgage payments, insurance, property taxes, heating, electricity and maintenance?rose 73.4% for older houses and 102.3% for new ones. The economists and other scholars who wrote the M.I.T.-Harvard study say that if house prices rise as fast, and incomes grow no more rapidly, over the next five years, "typical new homes in 1981 would sell for $78,000 ... the U.S. would become less and less a nation of homeowners...
...businessmen and their employees assess their immediate future, the differences can seem vast indeed. To a corporate official looking 90 days ahead, the road appears considerably more free of barriers than it did before Aug. 15. He has a virtual guarantee of stable costs???including one of the fastest rising costs of all, labor?until mid-November and perhaps beyond. More important, he can see opportunity ahead?in an invitation to expand his operation and in the expectation of higher sales, both of which gains have already been reflected in the optimism of a rising stock market. G.M. Chairman James...
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