If you’re worried about the immediate future of our economy, allow me to share the following take-away: Economic expansions don’t die of old age…they go on until something kills them. Just finished reading an opinion in the Wall Street Journal today from Alan S. Blinder. He’s a professor of economics at Princeton University.
Because our current economic expansion is approaching 100 months many observers assume its days are numbered. Mr. Blinder argues that the good news is that the end isn’t near. He sees no serious threat in sight. Sighting the most common killer of expansions as monetary tightening by the Federal Reserve, he sees that as unlikely. With no inflation in sight, the Fed is trying to extend the good times by raising interest rates as gradually as possible. It’s always possible that something (North Korea?) could shake consumer confidence causing spending to plummet. Right now, I’m planning to continue to expand my businesses with an eye towards that something that could kill our economic expansion.