If, we could predict the future, accurately, and consistently, many things, would be easier, and more successful, to accomplish and achieve! 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 significant and relevant, 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, significantly, to many components, 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 created, 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 handle federal funds, etc!
2. The inflation/ recession, see – saw: Often, Federal Reserve Bank, money policy, and, especially, interest rates, etc, are, largely, predominantly, based on the perceptions/ fears, etc, related to potential dangers, of, either, inflation, or recession. Traditionally, they use policies, making the ease and costs of borrowing, based, almost exclusively, on reaction, rather than 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, remain, low? Is the policy, based on a sound – strategy, or, politics, and/ or, manipulations? These numbers, often, determine many components of our economy, especially, housing (mortgage rates, etc), the impacts on the stock markets, etc. How might these uncertain times, cause potential 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 exceeded, houses – for – sale! How long will this continue? The combination of pent – up, demand, stemming from the pandemic, etc, and, record – low, mortgage rates, has created, a huge uptick/ increase, in home prices! Will that continue, slow, or somewhat – reverse?
5. Jobs/ industries of future: Will we, be prepared, for the future, by encouraging, job/ career training, which are driven, by future needs? Wouldn’t it make sense, to focus – on, training former coal workers, and others, in sustainable industries, etc, such as, renewable energy, cyber – security, etc?
6. Importance of Climate, Environment, and Public Health: If, our highest priorities, are not, in areas, such as climate, environment, 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 demand better, sooner, rather than later?