Butnerthey

THURSDAY
October 17, 2013
THE BUTNER-CREEDMOOR NEWS
COMMUNITY NEWS
B SECTION
B
MAY HONORED
Kathy Fuerst,
principal at South
Granville High School in
Creedmoor has announced
that Alan May
has been named a
Commended Student in
the 2014 National Merit
Scholarship Program. A
Letter of Commendation
Y OU
D ECIDE :
By Dr. Mike Walden
N ORTH C AROLINA C OOPERATIVE E XTENSION
from the school and
National Merit Scholarship
Corportation
(NMSC), which conducts
the program, will be presented
by the principal to
this scholastically
talented senior.
About 34,000
Commended Students
throughout the nation are
HOW
DOES
GOVERNMENT
SIZE IMPACT THE
ECONOMY?
Perhaps few topics can start a verbal clash more
than the debate over government size and the
economy. The competing sides are well known. One
position says government gets in the way of the
economy, by levying taxes, writing restrictive
regulations and directing spending to less productive
activities. The opposing side says government
spending is vital to keeping the economy growing,
improving lives and ensuring fairness.
This debate is heard at both national and state
levels. Ever since the federal government began
running large annual budget deficits, the economic
effects of government size have been a flashpoint. Also,
here in North Carolina, the most recent session of the
General Assembly featured a lively discussion about
the role of government in economic growth.
As I always strive to do, my role here is not to
choose sides and promote a particular position but to
present analysis and insights that economists have
accumulated over decades of studying the intersection
of government and the economy.
First, let me begin by addressing how government’s
size has changed in recent decades. Economists’
preferred measure of the size of any sector in our
economy -- whether it is government, manufacturing
or health care -- is to look at spending in the sector as
a percent of all income. This is similar to a household
tracking its own spending by examining spending
amounts for food, clothing, shelter or transportation
as a percent of the household’s total income. The most
comprehensive measure of aggregate income in our
economy is a concept called "gross domestic income,"
or GDP.
At the national level, federal government spending
as a percent of GDP has remained remarkably stable
in recent decades, at around 19 percent. Of course,
during recessions, when GDP declines and federal
spending usually rises, the rate can move higher, often
near 25 percent.
There’s a similar picture in North Carolina. For
the last 30 years, combined state and local government
spending in our state -- omitting federal funds
administered by the state -- has hovered around 6
percent of North Carolina’s GDP. Again, the rate tends
to move up during recessions and then back down
during economic expansions.
Next, can economists say anything definitive about
the relationship between the relative size of
government spending and the economy? There have
been two levels of inquiry on this issue, one comparing
countries from around the world and the other
comparing states within the U.S.
A recent economic paper summarized a large
number of studies focusing on how the size of
government affects the economic growth of nations.
The authors concluded that the majority of studies
showed a larger government sector leading to slower
economic growth. However, the authors noted several
caveats. First, the relationship was relatively small.
Every one percentage point increase in government’s
size as a percentage of GDP led to between a 0.05 to
0.1 percent reduction in the annual national economic
growth rate.
Second, the relationship between government
spending and economic growth depends on the type
of spending. Many studies find that spending on
education and infrastructure (highways) improves
economic growth, while spending on transfer programs
reduces growth.
Third, some countries -- primarily in Scandinavia
-- appear to be exceptions to the rule, with large
government sectors but high economic growth. Some
economists speculate these countries are able to
counteract the adverse effects on growth of
government size with pro-business regulatory and
research policies.
Now, what are the findings about government size
and the economy at the state level? Unfortunately, the
many studies done by economists linking the two are
less than conclusive. Perhaps the best that can be said
is that any effect that does exist is very small.
There may be two reasons for this conclusion. First,
the relative size of government at the state and local
level is much smaller than the relative size of the
federal government, so changes at the federal level
will often have more impact. Also, most of the states
are clustered within a couple of percentage points in
measures for the relative size of their state and local
governments.
Second, there are a whole host of other factors that
impact state economic growth besides the size of
government, factors like the type and importance of
different economic sectors in the state, the cost of doing
business, worker training and skills, access to raw
materials and markets, natural amenities and even
the climate..
People will continue to argue about the size of
government, and economists will continue to churn
out new studies looking at the impacts of government
size and spending on the economy. Maybe the issue
will never be resolved, but we’ll still try to decide!
being recognized for their
exceptional academic
promise. Although they
will not continue in the
2014 competition for
National Merit Scholarship
awards, Commended
Students placed
among the top five
percent of more than 1.5
million students who
entered the 2014
competition by taking the
2012 Preliminary SAT/
National Merit Scholarship
Qualifying Test
(PSAT/NMSQT®).
“The young men and
women being named
Commended Students
have demonstrated
outstanding potential for
academic success,” commented
a spokesperson
for NMSC. “These
students represent a
valuable national resource;
recognizing their
accomplishments, as well
as the key role their
schools play in their
academic development, is
vital to the advancement
of educational excellence
in our nation. We hope
that this recognition will
help broaden their
educational opportunities
and encourage them as
they continue their
pursuit of academic
success.”
Tax & Business
INFORMATION PROVIDED BY
Cozart & Edwards, PA
Certified Public Accountants
REVIEW YOUR INVESTMENTS
BEFORE YEAR-End
This is a good time of year to review your
investments. If you’re not meeting your financial
goals for the year, there’s still time to make changes.
Make sure your portfolio is appropriately balanced
among stocks, bonds, and other investments. Keep it
well diversified, without too much at risk in any one
sector. And you’ll want to weed out investments with
poor future prospects.
As you identify investments to buy and sell, keep
the following tax implications in mind:
When you sell assets, you’ll have a capital gain
or loss. Remember that capital gains on assets held
for more than 12 months enjoy lower tax rates. For
shorter holding periods, you’ll pay tax at ordinary
income rates.
Don’t forget to include any reinvested dividends
when you calculate your cost basis for mutual fund
shares.
You can use capital losses to offset capital gains.
Excess capital losses can even offset a limited amount
of ordinary income.
Watch out for the "wash sale rule." If you sell
stock and then reacquire substantially identical
securities within 30 days of a sale, you can’t deduct a
loss from the sale.
The law passed in January of this year sets the
tax rate on long-term capital gains and qualified
dividends at 20% for taxpayers in the 39.6% ordinary
income bracket. Taxpayers in the two lowest ordinary
income rates (10% and 15%) will have a 0% rate on
capital gains and dividends. Those in all other
brackets will continue to have a 15% rate on dividends
and long-term capital gains.
Changing investments within a tax-sheltered
retirement account doesn’t have any immediate tax
consequences. You’ll pay tax at ordinary income rates
when you take distributions.
Remember, taxes shouldn’t drive your investment
decisions, but they are an important factor to consider.
If you need assistance, give us a call.
Senior Center
Activities Schedule
PO Box 766, Hwy 56E. & Main Street
Creedmoor, NC 27522
Week of Mon. Oct. 21, - Fri. Oct. 25, 2013
Daily: 8:30 - 11:30 a.m. Walking in the Gym
9:00 - 10:00 Coffee Hour
12:00 - Lunch
For More Information - Call 919 528-0848
www.granvillecounty.org
Click “Senior Services”
Monday, Oct 21: 8:45 Game Time, 9:00 Trip: NC
State Fair - Raleigh, 10:00 Acrylic Painting Class w/
Alma Burke,11:00 Devotion: Minister Phil Morton,
4:00 Zumba Gold.
Lunch 12:00: Hamburger, Corn on the Cob,
Lettuce/Tomato, Hamburger Bun, Milk.
Tuesday, Oct. 22: 8:45 Game Time, 9:00 Low
Impact Aerobics, 10:05 Exercise for Arthritis, 10:30
Bible Study w/Dr. Mercedes Summers, 12:15 Water
Aerobics - YMCA, No Computer Class Today, 1:00
J.O.Y. Singers Practice.
Lunch 12:00: Fried Fish, Stewed Tomatoes,
Potato Salad, Cornbread Square, Milk.
Wednesday, Oct. 23: 8:45 Game Time, 10:15
Bingo (sponsored by Universal Healthcare, Oxford)
Lunch 12:00: Brunswick Stew, Cornbread Square,
Peaches, Milk.
Thursday, Oct. 24: 8:45 Game Time, 9:00 Low
Impact Aerobics, 10:00 Crochet Club, 10:05 Exercise
for Arthritis, 12:15 Water Aerobics - YMCA, No
Computer Class Today.
Lunch 12:00: Roast Beef (for sandwich), Lettuce/
Tomato, 4 Bean Salad, Wheat Bread, Milk.
Friday, Oct 25: 8:45 Game Time, 9:00 Craft -
Ceramic Classes w/Joan Harrison & John Smith, 10:30
Fall Festival
Lunch 12:00: Hot Dog, Bag Baked Chips, Hot
Dog Bun, Coleslaw, Milk.
• Milk is served with each meal - Chocolate milk
and 2% low fat milk are available.
Savvy
Senior
You ask the Senior question ~ We find the Savvy answer
Help For Seniors Who Are
Drowning In Clutter
Dear Savvy Senior,
My 67-year-old mother’s house has become a
cluttered mess. Since my father died a few years ago,
her house is so disorganized and messy with stuff that
it’s becoming a hazard. I think she has a hoarding
problem. What can I do?
Worried Daughter
Dear Worried,
Compulsive cluttering is a problem that effects up
to five percent of Americans – many of whom are
seniors – with problems ranging anywhere from mild
messiness to hoarding so severe it may be related to
a mental health disorder like obsessive-compulsive
disorder (OCD). Here’s what you should know, along
with some tips and resources that can help your mom.
Why People Hoard
The reasons most people hoard are because they
have an extreme sentimental attachment to their
possessions, or they believe they might need their
items at a later date. Hoarding also may be a sign
that an older person is depressed, or showing early
symptoms of dementia.
Common problems for seniors who live in excessive
clutter are tripping, falling and breaking a bone;
overlooking bills and missing medications that are
hidden in the clutter; and suffering from the
environmental effects of mold, mildew and dust, and
even living among insects and rodents.
What To Do
To get a handle on your mom’s problem, the
Institute for Challenging Disorganization offers a free
"Clutter Hoarding Scale" that you can download off
their website at challengingdisorganization.org.
If you find that your mom has only a mild
cluttering problem, there are a number of things you
can do to help.
Start by having a talk with her, respectfully
expressing your concern for her health and safety, and
offering your assistance to help her declutter.
If she takes you up on it, most professional
organizers recommend decluttering in small steps.
Take one room at a time or even a portion of a room at
a time. This will help prevent your mom from getting
overwhelmed.
Before you start, designate three piles or boxes
for your mom’s stuff – one pile is for items she wants
to keep-and-put-away, another is the donate pile and
the last is the throwaway pile.
You and your mom will need to determine which
pile her things belong in as you work. If your mom
struggles with sentimental items that she doesn’t use,
like her husband’s old tools or mother’s china for
example, suggest she keep only one item for memory
sake and donate the rest to family members who will
use them.
You will also need to help her set up a system for
organizing the kept items and new possessions.
Find Help
If you need some help with the decluttering and
organizing, consider hiring a professional organizer
who can come to your mom’s home to help you
prioritize, organize and remove the clutter. The
nonprofit group National Association of Professional
Organizers has a directory on the website at napo.net
to help you locate an expert in your area.
If she has a bigger, more serious hording problem
(if her daily functioning is impaired, or if she is having
financial difficulties, health problems, or other issues
because of her hoarding) you’ll need to seek
professional help. Antidepressants and/or talk therapy
can help address control issues, anxiety, depression,
and other feelings that may underline hoarding
tendencies, and make it easier for her to confront her
disorder.
To learn more and find professional help see the
OCD Foundation (ocfoundation.org/hoarding) which
provides a hoarding center on their website that offers
information, resources, treatments, self-help groups,
and more.. Also see hoardingcleanup.com, a site that
has a national database of qualified resources
including cleaning companies and therapists that can
help.
Send your senior questions to: Savvy Senior, P.O.
Box 5443, Norman, OK 73070
FINANCIAL FOCUS
CHRIS ELLIS
EDWARD JONES INVESTMENT FIRM
Lessons from “Save For Retirement Week”
Congress has designated the third week of October
as National Save for Retirement week - which means
it’s a good time to think about your own retirement
savings strategies.
To help boost your prospects for a comfortable
retirement, consider these suggestions::
First, envision your retirement goals and estimate
their costs. Knowing how much you’ll need to
accumulate can help you develop appropriate
investment strategies.
And, of course, contribute as much as you can
afford to your IRA and your 401(k) or other employersponsored
retirement plan. Within these retirement
accounts, consider putting appropriate amounts in
growth-oriented vehicles.
You’ll also need to review your progress toward
your retirement goals. If your portfolio is
underperforming, you may need to make some
changes. And, in the years immediately preceding
your retirement, you may want to shift some dollars
into income-producing investments.
National Save for Retirement Week comes just
once a year. Take its message to heart.
This article was written by Edward Jones for use
by your local Edward Jones Financial Advisor.