The economy’s strength and stability — defying many of the most optimistic predictions — represents a remarkable development after seemingly endless crises
As 2023 winds to a close, Powell and his colleagues are far from declaring victory on inflation. They routinely caution that their actions could be thwarted by any number of threats, from war in the Middle East to China’s economic slowdown. Americans are upset about high costs for rent, groceries and other basics, which aren’t going back to pre-pandemic levels. The White House, too, is quick to emphasize that much work remains.
Yet the economy is ending the year in a remarkably better position than almost anyone on Wall Street or in mainstream economics predicted, having bested just about all expectations time and again. Inflation has dropped to 3.1 percent, from a peak of 9.1. The unemployment rate is at a hot 3.7 percent, and the economy grew at a healthy clip in the most recent quarter. The Fed is probably finished hiking interest rates and is eyeing cuts next year. Financial markets are at or near all-time highs, and the S&P 500 could hit a new record this week, too.
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I am not gambling anyone’s life. I have almost no power and can’t do anything to create or delay a crisis. The best I will do with my limited power is try and make it so the organization on the ground is ready to attempt that leftward shift if/when the crisis comes.
It could end in a fascist dystopia, but I think that’s less likely. At least in the u.s. where fascism never took off in its heyday before it had any stigma. If your talking about something with no evidence then that fascist speculation would be something, at least there’s precedent for a Keynesian new deal in the U.S. I do recognize it as a possibility though and that’s why I said probably, not with “absolute certainty”.
If the crisis doesn’t happen we may all die as well as neither party seems willing to deal with the climate catastrophe. That outcome seems way more certain to me, as shown by the repeated calls for action in the last 2 decades falling in deaf ears, than fascists taking over if a crisis does happen.
The way I see it is there’s a 90% chance of severe climate catastrophe on the current course, and a 30% chance there will be a fascist takeover if there’s a crisis, but a 50% chance for a green new deal. These are all completely speculative, but so is any guess on the future and I like to believe my guess has some backing in historical reality.