Years ago, Barataria predicted that 2017 would be “The Year Everything Changes”. The lesson is, of course, that we all need to be careful what we wish for.
The basic underlying forces which drove that prediction have not changed. The holiday shopping season has yet to be fully tabulated, but it appears that the robust 3.6% gain predicted was met or even matched, with one estimate showing a 4.9% gain. Baby Boomers will still hit retirement age and there will definitely be a shortage of workers coming up, especially in certain skilled areas.
For all that hope, the upside will be limited by an incoming Trump administration. It’s not just that they are largely tied to political views which do not fit the situation, it’s that many of them have little to no experience making policy. To a large extent, nothing will get done. But what does get done will happen among the bureaucracy. That may mean more change than we all think.
2017 is still over three years away, but we can already say a lot about it. We know that there will be a new President, although it’s not clear yet which party has the edge this far out. It’s likely that whoever is elected she (as it well could be) will try very hard to take the partisan edge off of Washington and get things done. There may even be a new Congress by then with a completely different configuration. But as big as the political changes are likely to be, the real change will be away from Washingtoon.
That will be the year that the peak Baby Boomers, born from 1952-1959, hit 65 years old and start to retire. Ahead of them are at least 15 million Boomers who will have passed that threshold, with probably 10M or more retiring. With slow growth inflation should still be low and unemployment will suddenly and sharply decline. The Millenial Generation will hit the workforce (and the electorate) in a big way. Combine that with the rising optimism coming on slowly and the boom should fire up.