Wednesday, December 19, 2018

Hows the Economy

How strong is the economy?

There are some numbers that look good, such as unemployment but there are also some troubling signs.

It certainly isn't the best economy ever, we don't actually see a major expansion in employment, we see increases at the edges.

If you consider the stock market as a predictor, it is likely that 2019 is going to be a problem year as interest rates, tariffs and political uncertainty cause disruptions.

As always the economy will be better in some places and not so good in others.

Very little improvement has taken place in our hard hit rust belt, as the promises of reviving manufacturing and coal were really empty ones in the first place.

Coal is simply no longer the fuel of choice and manufacturing just needs a lot less workers now, even if you re-open a plant.

Automation and cheap foreign sources haven't gone away.

We are not making enough progress, especially in the heartland to develop new industries like solar and renewable.

Both coasts are doing well because of tech and service industries, but where brawn in the norm, not so much.

Automated brawn is just cheaper.

Economy is still mixed but not terrible.  It is likely to get much worse soon.

We need more trade, not less.

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