If we could predict the future, accurately and consistently, many things would be easier and more successful to accomplish! It would make things like investing successfully, buying investment real estate, buying a home (at the best opportunity), evaluating job/career opportunities, etc., a much easier task! However, in the real world, there are many uncertainties, and these are often significant and relevant, related to the overall performance and condition of the economy. With that in mind, this article will briefly attempt to consider, examine and review 6 specific unknowns, which are significantly related to many components etc. of our economy.
1. The Impacts of Huge Deficits: The United States of America is currently experiencing historically large/huge deficits! This started after the 2017 tax legislation, which created a deficit of about a trillion dollars! It continued, and grew larger, due to the need for increased amounts of public assistance, based on human need, caused by the ramifications and impacts of the horrible pandemic! The hypocrisy of many politicians, who selectively oppose and support deficit spending when it seems to serve their personal/political agenda, creates a serious inconsistency in the way we proceed, send and manage federal funds, etc.
2. Inflation/recession goes up and down: Often the Federal Reserve Bank, monetary policy and especially interest rates etc. are largely based predominantly on perceptions/fears etc., related to the potential dangers of either inflation or recession. Traditionally, they use politics, making the ease and costs of borrowing almost exclusively based on reaction, rather than proaction! When they fear inflation, interest rates go up, and when they hope to stimulate the economy, they relax these policies and lower rates! We are currently experiencing historically low interest rates! Is this a form of manipulation or well thought out policies?
3. Interest rate uncertainties: How long will rates stay low? Is the policy based on a good strategy or policy and/or manipulations? These numbers often determine many components of our economy, especially housing (mortgage rates, etc.), impacts on stock markets, etc. How could these uncertain times cause potential ramifications?
4. Future real estate/housing market: For a while, the real estate market has been a seller’s market, because the number of qualified buyers has outpaced the number of homes for sale. How long will this continue? The combination of pent-up demand, stemming from the pandemic, etc., and all-time low mortgage rates has created a huge spike/increase in home prices. Will that continue, slow, or something – backwards?
5. Jobs/industries of the future: Will we be prepared for the future by promoting job/vocational training, driven by future needs? Wouldn’t it make sense to focus on training ex-coal workers and others in sustainable industries etc like renewable energy, cyber security etc?
6. Importance of climate, environment and public health: If our top priorities are not related to industries in areas like climate, environment and public health, doesn’t that bode badly for sustainability? , of our nation, and the planer? Do we not at least owe 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/importance, gets done when politics becomes a greater influence than smart strategies and actions! Will you demand better, sooner rather than later?
Richard has been a business owner, COO, CEO, development director, consultant, professional event organizer, consulted with thousands of leaders, and conducted personal development seminars for 4 decades. Rich has written three books and thousands of articles. His company, PLAN2LEAD, LLC