With 2015 out of the way, it’s time to look forward. But as we’ve shown many times, the best way to draw a line into the future is an extrapolation from the past. Such is the real tradition at New Year’s – looking back and ahead at the same time.
Besides, the stillness of the present time moment is usually more of a hangover.
With Kevin McCarthy (R-CA) dropping out of the race to become Speaker of the House, the level of chaos in Congress has hit a new height. It’s hard to imagine what comes next in this intractable situation as nearly every option has become open – including the longshot possibility that a bi-partisan group of centrists might soon be in charge.
Will this open the floodgates and see something get done or will the gridlock become even more set in stone for the next year? Like the weather, everyone likes to complain about it but no one seems to do anything about it. But next year could be the year that Democrats actually do something and take control – of both the Senate and the House. This is actually possible if we seize the moment.
How will the economy perform in 2015? In many ways, it’s a lot like the weather. The first guess is that we should expect more of the same from 2014, which is to say a steady improvement. Last year was a turning point for many people as the bottom hit five years ago was finally shaken off. Progress was made overall – it’s really a question of who benefited and who will continue to benefit.
But when putting together an economic forecast for the coming year something stands out that is quite remarkable. There are hardly any trends for 2015 that should not be important in 2016 as well. Understanding why takes Barataria back to the fundamental principles, theories really, that have guided our understanding of the economy and where it is going.