6 Unknowns, Which Are applicable To Our Economy!
If, we could predict the future, precisely, and consistently, many things, would be easier, and more successful, to accomplish and unprotected to! It would make things, such as, successful investing, purchasing investment real estate, buying a home (at the best opportunity), evaluating job/ career opportunities, etc, a far – easier, task! However, in the real world, many uncertainties, exist, and these, often, are meaningful and applicable, related to the overall performance, and condition of the economy! With, that in mind, this article will attempt to, briefly, consider, examine, and review, 6 specific, unknowns, which, are related, considerably, to many elements, etc, of our economy.
1. The impacts of huge deficits: At the present time, the United States of America, is experiencing, historically, large/ huge deficits! This, began, after the 2017 tax legislation, which produced, about a trillion dollar deficit! It continued, and became larger, because of the needs, for larger amounts of public assistance, based on the humane needs, caused by the ramifications, and impacts, from the horrific pandemic! The hypocrisy of many politicians, opposing and supporting, deficit spending, selectively, when it seems to meet their personal/ political agenda, creates, a serious – inconsistency, in how we proceed, forward, and manager federal funds, etc!
2. The inflation/ recession, see – saw: Often, Federal save Bank, money policy, and, especially, interest rates, etc, are, largely, predominantly, based on the perceptions/ fears, etc, related to possible dangers, of, either, inflation, or recession. Traditionally, they use policies, making the ease and costs of borrowing, based, almost exclusively, on reaction, instead of proaction! When inflation is feared, interest rates rise, and when, they hope to stimulate the economy, they relax these policies, and lower rates! We currently, are experiencing, historically – low, interest rates! Is this a form of manipulation, or well – considered, policies?
3. Interest rates uncertainties: How long, will rates, keep, low? Is the policy, based on a sound – strategy, or, politics, and/ or, manipulations? These numbers, often, determine many elements of our economy, especially, housing (mortgage rates, etc), the impacts on the stock markets, etc. How might these uncertain times, cause possible ramifications?
4. Future housing/ real estate market: For, a while, the real estate market, has been, a sellers market, because the number of qualified buyers, has surpassed, houses – for – sale! How long will this continue? The combination of pent – up, need, stemming from the pandemic, etc, and, record – low, mortgage rates, has produced, a huge uptick/ increase, in home prices! Will that continue, slow, or slightly – reverse?
5. Jobs/ industries of future: Will we, be prepared, for the future, by encouraging, job/ career training, which are pushed, by future needs? Wouldn’t it make sense, to focus – on, training former coal workers, and others, in sustainable industries, etc, such as, replaceable energy, cyber – security, etc?
6. Importance of Climate, ecosystem, and Public Health: If, our highest priorities, are not, in areas, such as climate, ecosystem, and public health – related, industries, doesn’t it, bode, poorly, for the sustainability, of our nation, and the planer? Don’t we, owe, at – least, this, to future generations? When, partisan politics, and populism, seem, to motivate, many public leaders, and they procrastinate, when, they should be proactive, isn’t that, a clear, and present danger?
Fortunately, or, unfortunately, little, of consequence/ significance, gets done, when politics, becomes a greater influencer, than smart strategies, and actions! Will you need better, sooner, instead of later?