by Bill Conerly
Forbes
The economic forecast for 2025 shows growth, but at a slower pace than 2024. Inflation will remain above the Federal Reserve’s target, with President-elect Trump’s policies limiting production while stimulating spending. The greatest risk is not a recession but limited production capability as immigration falls.
Economic Momentum Entering 2025
The United States economy has grown nicely through 2024. The last two quarters in particular grew faster than the long-run average, and the Atlanta Federal Reserve’s GDPNow estimate for the fourth quarter continues the above-average trend. Employment grew every month this year (though we don’t yet have December 2024 data).
Despite consumer price inflation falling considerably since peaking in 2022, household inflation-related stress and concern remain elevated, having dropped only slightly.
The number of people in the United States experiencing homelessness reached a new record this year, with lingering inflation and high housing prices among likely drivers, a government report said Friday.
When Donald Trump returns to the White House his “America First” policy is likely to increase inflation and global economic fragmentation, according to analysts.
How Have Starbucks Prices Changed Since 2014?
What’s happening with inflation?
Tariff price shock absorbers: In 2019, the average price of a new car in America was less than $40,000. But in the years since the pandemic, prices of new vehicles have risen rapidly. As of October 2024, the average price of a new car was more than $47,000.
When the Obama Administration first suggested the Affordable Care Act following the Financial Crisis, we argued that the outcome would be substantially higher, not lower, healthcare costs. It is interesting today that economists and the media complain about surging healthcare costs with each inflation report but fail to identify the root cause of that escalation. The chart below tells you almost everything you need to know, but in this blog, we will revisit why the Affordable Care Act failed to make healthcare affordable and some solutions to fix the problem.