I’ve posted numerous blogs on what bad things could happen to either the US or local economy, so today I wanted to post about some of the good things that are likely to happen.\u00a0 While the US still has to face the “deficit cliff \/ debt ceiling” over the next few months, and Europe is still firmly in “kick the can” mode, I am becoming cautiously optimistic that good times are a year or two away, and that they will benefit both workers and investors.<\/p>\n
So I’m starting to think about a) how I can benefit as an investor, b) how other workers can benefit, and c) how Cheatham County can be prepared to capture this growth when it comes back.<\/p>\n
I know a lot of people have been burned by the past couple of years, and don’t trust the stock market. \u00a0 But those are usually the best times to invest, and I don’t believe this to be a exception. \u00a0 The “easy” smart thing to do would be to invest in a S&P stock index, as much as you can afford. \u00a0 And you *definitely* want to use tax-advantaged investment vehicles like your 401K or a Roth IRA, because for several reasons I expect taxes on both capital gains and dividends to rise substantially over the next decade. \u00a0 (If anyone’s curious I do have a few ideas about “harder” smart things that have a higher risk\/reward, so email me if you’re curious.)<\/p>\n
For workers, the benefits of this manufacturing boom probably won’t accrue evenly. \u00a0 Manufacturing will be moving back, but that doesn’t mean jobs will. \u00a0 Modern manufacturing will have more automation<\/a> and fewer (but smarter) workers. \u00a0 So the person with a high school degree will continue to lag behind, whereas the person with training in a STEM field such as robotics, electronics, IT, etc should be poised to reap an above-average income.<\/p>\n I’m still thinking about how Cheatham County can tap into this growth when it comes. \u00a0 The answers are investments in infrastructure and education, and the sooner the better. \u00a0This is already well-known to most of the movers and shakers I’ve talked to. \u00a0The problem here is politics, and expectations. \u00a0 Funding these investments almost certainly requires a tax increase of some sort. \u00a0But the average citizen hears “tax” and their hair bristles. \u00a0There’s an almost Pavlovian reaction. \u00a0The same people who are failing to invest in their own retirement, have an even harder time understanding government making investments on the public’s behalf. \u00a0 We either need to elect a slate of politicians unafraid of committing career suicide to do the right thing, or we need to do a vastly better job on informing residents and helping them see the big picture. \u00a0 I have some ideas, but this is the toughest nut to crack of all of them.<\/p>\n","protected":false},"excerpt":{"rendered":" I’ve posted numerous blogs on what bad things could happen to either the US or local economy, so today I wanted to post about some of the good things that are likely to happen.\u00a0 While the US still has to … Continue reading