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TOPIC: Economy in 2017

Economy in 2017 1 year 7 months ago #1

  • FrankN
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4% is just unrealistic. I would love to see it, but our economy is too mature. I just don't see how that can happen.
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Economy in 2017 1 year 7 months ago #2

  • Goldbug
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CNN are saying growth in 2017 will be higher than 2016, with Trump promising 4%, but the problem is how is it going to be funded? I don't know that the economy can take more debt financing or if it is just storing up a time bomb and driving up inflation at the same time. The one thing we don't need in a couple of years is growth slowing or stopping at the same time inflation goes up.
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Economy in 2017 1 year 8 months ago #3

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inflation is going to be a big problem. Too much free money and too low of interest rates for a long period of time.
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Economy in 2017 1 year 9 months ago #4

  • FrugalFran
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I think unemployment is pretty low right now. What is it? A little over four percent? Incremental wage growth is fine, but prices have been rising at an alarming rate over the past five years and I can't imagine things like groceries going up even more.
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Economy in 2017 1 year 9 months ago #5

  • Lexie
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Goldbug wrote:
FrankN wrote:
That is absolutely true we need wage growth on an aggregate basis with no impact on unemployment.
Personally I'd like to see unemployment stable or reducing, and an increase in wages. There's a nasty debt cycle going on at the moment, and a disturbing growth in consumer borrowing despite the Fed's rise in rates in 2016. I'd prefer to see people able to pay off debts and pay cash for purchases, or when the interest rates rise again there's going to be a lot of bankruptcies.

I totally agree! Don't forget that in the debt cycle, if salaries go up, the price of goods will rise as well. Can't have one without the other. And, companies are hiring more part time workers now rather than full time so they don't have to pay benefits. But that's a whole other conversation.
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Economy in 2017 1 year 9 months ago #6

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FrankN wrote:
That is absolutely true we need wage growth on an aggregate basis with no impact on unemployment.
Personally I'd like to see unemployment stable or reducing, and an increase in wages. There's a nasty debt cycle going on at the moment, and a disturbing growth in consumer borrowing despite the Fed's rise in rates in 2016. I'd prefer to see people able to pay off debts and pay cash for purchases, or when the interest rates rise again there's going to be a lot of bankruptcies.
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Economy in 2017 1 year 9 months ago #7

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That is absolutely true we need wage growth on an aggregate basis with no impact on unemployment.
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Economy in 2017 1 year 10 months ago #8

  • Moneyes
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Wage growth will only work if it's incremental and other jobs keep trickling in at the same time. Otherwise, you're going to be seeing a lot of lay-offs as companies cannot afford to pay the increases if their profit margin is already slim.
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Economy in 2017 1 year 10 months ago #9

  • Breakinger
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Wage growth would be one of the first things on my list, too. It would be great if more jobs would offer competitive wages too because there is still such a wage gap between different industries that isn't fair. It would also be nice if the Stock Market would increase a little bit too.
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Economy in 2017 1 year 10 months ago #10

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What would like people to see for the economy in 2017? I would like to see strong wage growth and stable unemployment.
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