Headwinds for the US economy

Headwinds for the US economy

Economic storm clouds are gathering regarding the state of the US economy. Globally, China is experiencing a massive economic slowdown along with the Euro sector. The two conflicts cast serious doubts on the future of geopolitics as they appear to create a division within the global economy. The convergence of positions and events resembles a collapse brewing in the upper Midwest that would wreak havoc on agricultural interests at a geographic distance. Let’s examine some of the headwinds on the US economic watch list.

Student debt

A hundred billion dollars in student debt to pay off will put pressure on consumer confidence, especially millennials. The ability to afford a home, purchase a car, and cover daily expenses will become more difficult, reducing economic growth by up to three-tenths of one percent by some estimates.

Labor strikes

Labor strikes in many sectors such as the automobile industry, Hollywood, and now transportation in Canada affect manufacturing and the movement of goods and services. Will the workforce price its organizations and institutions so that they are no longer able to compete globally?

Budget dilemma

Whether it’s the federal budget or negotiations over the farm bill, the impasses are affecting American consumer confidence and companies’ ability to make long-term investments. With the presidential election a year away, this will only be amplified by public media, social media, and now artificial intelligence. It will become increasingly difficult to determine what is real versus what is fabricated.

Erosion of governance

The erosion of governance and the ability to compromise for the common good has become more difficult. In the discussions following the speeches, several individuals suggested a new category on the electoral ballot: none of the above! I laugh and somewhat agree. Again, without effective leadership, the ability to make short- and long-term decisions becomes more difficult.

In the next article, we will continue our discussion of headwind variables and potential economic entitlement.

note

On the plus side, since the 1980s, economic expansions have been longer, at approximately 90 months compared to an average of 58 months since the Great Depression. Economic recessions since the 1980s have been shortened to just over six months compared to an average of 11 months since the Great Depression.

David Cole’s opinions are not necessarily his own cornsoybeandigest.com Or farm progress.

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