It goes without saying that 2020 was a horrible year, not just because of the personal terror the pandemic wrought on humanity, but also the impact it had and still has on our jobs, businesses, travel, entertainment, and thus the economy itself!
The big question?
How will the economy fare in 2021? Will it roar back to life or hide under the couch?
And now, here are . . .
Five Things You Need to Know:
- 2020 wasn’t a total recession — it was uneven — although so many suffered, a lot of us could work from home and got paid to do so. Which means, when the world is safer thanks to vaccines, there’s a lot of money that'a been put aside ready to spend!
- With the Fed injecting $120 billion to support the economy every month, there’s also been growth in the stock and credit markets, and because we’ve had more money in our banks getting pretty poor interest rates, or because credit right now is pretty cheap to borrow, we poured that money into stocks like Tesla, which rocketed to an extraordinary level as have other stay-at-home-stocks like Amazon and Netflix.
- What we all thought might happen didn’t: a crash in commercial real estate. But! Because the value of the properties themselves didn’t fall too much due to well-backed investors snapping them up, and because there’s so much money in commercial real estate, and so much to be made from it’s sale! Plus all the tax bonuses of owning it (despite what happens to the economy and markets) it’s still possible to come out on top as an owner and a winner.
- Most interesting of all is that the deadlock between both the Republican and Democratic parties might actually be solved outside of Washington by big business itself. Which, will no longer bankroll politicians that curry favor with their electorate by spreading baseless conspiracy theories. Because it damages the very fabric of democracy upon which business needs to operate in order help them sell things here and abroad. So it’s more likely that you’ll see more and more companies turning their backs on politicians who tell untruths or whip up violence. It’s just not good for business!
- Even with economists predicting the U.S. economy’s growth at around 4% this year, it’s likely we’ll be feeling the financial effect of the coronavirus until at least the mid 2020s. But, the key indicators of a healthier economy? When unemployment falls and new shops, businesses, and restaurants start to appear! So the second half of 2021 could — virus-and-vaccine-willing — see some spectacular returns to life as we knew it. And growth! In all the areas we’ve missed so much like restaurants, travel and sport.
All the more reason to buckle down now, wear a mask, wash your hands, and stay vigilant! Because that way we can guarantee together that the future we’re all dreaming of won’t be that far — or socially distanced — away.