For the past decade, the number of people, who believed that the American Dream was alive for them, had declined to miserable levels. We are back to a majority, which is great news! The economy finally has grown at a 3% annual rate for the first time since 2007, and unemployment levels are at multi-decade lows.
I have two points for today:
- How does this jive with an overpriced stock market? Well, in 1987, we had seen similar hot economic indicators and employment rates, and inflation had been under control for years, and yet the market declined by 25% in one day. This did not derail the economy, and allowed investors to get back into equities at sane valuations. I predict the same for our market.
- As far as achieving the American Dream, you need to invest in yourself. Acquire in-demand skills that employers and/or customers are having a hard time finding. Supply and demand works in regards to labor as well. If you are looking for a job, your competition is not the company who is hiring, but rather the other person who is also interviewing. The more people who are available to hire, the more likely they will accept a lower wage than you, driving down your wage! The fewer people with the needed skills, then the harder time a company has in finding the right person, and that person will demand a higher wage, driving wages up. Marching in the streets demanding a poor small business owner pays more and ends up struggling himself only leads to adoption of robotic automaton.
America’s long national nightmare over failing to achieve the American Dream is over.