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After the Next Recession

Posted in 2020 elections, US politics

The biggest problem facing the United States today is the inevitability of the business cycle.  Unemployment Friday reached its lowest rate in seventeen years. “Wages not keeping pace,” warned The New York Times. The “historically long jobs expansion… shows little evidence of slowing,” said The Wall Street Journal. That’s absurd, of course. Alarm bells may not be ringing. The 2017 tax cut stimulus is still working its way into the system. But with the jobless rate at 3.9 percent, wage growth will accelerate. Bottlenecks will form. Interest expenses will grow. Inflation rates will increase. Sometime in the next two years