There’s a deep unease spreading across America. It’s as if we’re on the cusp of something big, yet, in some ways, we’ve been lingering here for a long while. Solutions are fleeting. Instead, we’ve papered over cracks, borrowing from tomorrow to make today bearable. But every bill comes due.
Everyone feels it. Yet, what exactly waits for us remains hazy. Consider these five economic areas.
Urban Office Space - 2019’s office leases didn’t anticipate today’s landscape. Lockdowns redefined work, and now, most don’t want to return to old routines. Office spaces, once bustling, are ghost towns. As leases renew, the looming financial implications are massive. Could skyscrapers become the new derelict houses of 2008?
Inflation - Numbers about inflation can bewilder, but everyday life reveals the truth. Prices aren’t returning to pre-2021 levels. Inflation’s toll: lost savings and dwindling incomes. With two-thirds of American households living paycheck to paycheck, the financial horizon looks bleak.
Low Savings - True wealth is built on savings. Yet, as interest rates rise, neither individuals nor corporations are stashing away reserves. Instead, credit card debt surges, and companies operate with staggering liabilities. We’re mortgaging our future.
Fiscal Time Bomb - The Federal Reserve’s efforts to counter inflation will inflate the cost of servicing the national debt. Half a trillion dollars, and rising. Taxes and inflation will pay this price. As deficits grow, anticipate aggressive tax collections. Big government’s hunger is insatiable, and it’ll dig deep into pockets to feed.
Financial Markets - Stocks are faltering. With yields on 10- year Treasuries reaching unexpected heights, capital seeks sanctuary. The comfort of steadily rising portfolios might be ending, creating a potential panic among a generation already struggling to get by.
Add it all up, and the picture is clear. America is headed on a path of dwindling wealth and
increasing poverty. Hard times don’t just strain wallets; they strain souls, drawing out our basest
We’re in for rough seas.
By Sun Bay Paper’s Economic Reporter