The Farmville herald. (Farmville, Va.) 1957-current, 1958-12-23

SIS 900 900 900 and represent Is per
cent Of Our entire savings. I fore
cast that the total investments In
all types Of public and private
pension plans will have Jumped to
Sl65. 900 900 900 by 1878. thus assur-
ing steady purchasing power for the
pensioners and the disabled.
Effect on Insurance
/ The life insurance companies have
enjoyed continuous Improvement in
mortality rates for many years now.
owing largely to advances in medi-
cine and nutrition as well as to
shol .ening of the work week. Most
companies have found their actual
mortality experience more favor
able than that anticipated in the
calculations upon which their
premiums were based. Also the life
companies have had the advantage
Of vastly increased investment earn
ingS because Of large gains in
i premium income and the sharp up
War II
! believe life insurance companies
stand to make further spectacular
gains as life expectancy is bet
tered. Those insured BY mutual
companies should see total premium
costs decline as dividends are
4 bncstpd Tboyo ip.ura1 ~, ctoolx
companies should benefit from
lower premium rates or increases
IN coverage at little or no increase
from present rates. Longer life ex-
pectancy cannot help but enhance
the fortunes of the stock companies
Of which Aetna and Travellers are
the largest.
Pension Plans and Taxes
As longevity increases. the period
between retirement age and death
Will widen. This will mean add
uonal problems for government and
business. Sharp Increases In taxes
levied upon employers and en-
ployees for social security lie ahead
Boosts in contributions OF manage
ment and employees TO private pen
sion plans Will be equally stiff.
In addition, l predict that federal
state. and local taxes generally will
move to new high levels. Some OF
this increase viii be due to higher
operating costs A STABLE portion
Will BIZ due to the need for more
facilities and services for the grow
ing sector Of our population above
the age OF S..
New Boost for Labor
Since | anticipate another marked
increase In births in this country.
beginning probably about 1865 and
continuing for several years by
1878 We could we'll have. in a popu-
lation Of 225 900 900. IS 600 900 aged
% or over and bout ". OO0. 600
under 49, This means We Will have
lever workers 10 support more
people than at any other time In
our history Labor viii once again
pc III The saddle. riding high, wide
ana handsome. Chemists. physi-
| cists. engineers. and other skilled
specialists viii be in heavy demand
There IS only one method BY
winch business can counteract the
disastrou impact OF this expected
scarcity Of manpoWcr 1t must make
a greater and more effective use OF
the technlques Of automation. Other
! wise. there VIII not be sufficient as
surance OF earning TO attract
needed capital for expansion and
for replacement Of outmoded plant
and equipment. Perhaps the biggest
single problem facing management
over the next twenty years is man
power and the cost OF that man
power Attenuation is the only an
sWer l can see. predict that COM
panies making machines or other
equipment designed TO cut labor
costs Will have an unusually bright
future