Four reasons for economic optimism in 2013, 2014, and beyond

The case for US economic optimism in 2013, 2014, and beyond continues to grow. Here are four reasons for optimism (with limits to the optimism in parentheses):

1. US oil boom (on the other hand, there is a possibility we see new knowledge of environmental limits to fracking technologies and know-how)

2. The Federal Reserve balance sheet, the unprecedented existence of “excess reserves,” and the potentiality this cash will soon be deployed by banks to increase money velocity and induce inflation (deployment requires the Fed is able to unwind its assets as well, namely US treasuries and/or mortgage-backed securities)

3. The substantial drop and recent bottoming-out of the housing market means there is ample room for price increases (doesn’t necessarily mean housing prices will return to 2006 levels)

4. The retrenchment of the conservative movement, in terms of its direct impact on the socialized knowledge surrounding US public policy, means better public policy is upon us (extent of conservative movement’s power during 80s, 90s, 2000s means residual effects will remain)

These are four reasons to be optimistic about economic growth in 2013 and, more so, 2014 and beyond. Now whether an inflation-induced economic boom will bring with it an actually thriving labor market, that is another question.

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This entry was posted in an actually thriving labor market, conservative movement, economic recovery, macro-economics, money and finance. Bookmark the permalink.

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