My 5 Questions About the Economyhttp://www.fool.com/investing/general/2012/11/12/my-5-questions-about-the-economy.aspx Morgan Housel
November 12, 2012
Last week, a radio show asked me what my biggest questions about the economy are. I'm not good on the spot, so I gave a long, rambling non-answer. Now that I've had some time to think about it, here are five things I want to know.
1. What happens with the fiscal cliff?
There could be a third option: a short-term deal that punts the hard deficit decisions down the road again. I actually think that's the most likely outcome. But given Washington's history of partisan flamethrowing and gridlock, the odds that something ugly will happen are uncomfortably high. What's dangerous about the fiscal cliff is that the worst outcome will happen if Congress does nothing -- which is the one thing our legislators are really good at.
2. Will there be a long-term shift in labor versus capital?
I want to know: Are those three periods coincidental, or does the economy move in consistent cycles that favor labor in one, then capital in the next? If it's the latter, then it's possible that the next 50 years could be more favorable to workers and less to owners of capital.
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