Who Gets the Credit Today, and Who Will Get the Blame Tomorrow?

 

 

WHO GETS THE CREDIT?

Here’s a photo I took yesterday of a massive apartment building under construction here in Las Vegas.

All over our city, we see similar projects being built. Dozens of buildings with thousands of new units are rising from the desert valley. Moreover, a record number of single-family homes have been constructed this year all over the city. We’re experiencing a building boom. [see footnote below]

Months from now, very likely early next year, each of these apartments will be filled with happy new residents. By the thousands. Things will look fantastic. Economic metrics will be positive. People will feel good about moving into their new homes. Furthermore, if they’re moving into brand new complexes and buying houses, it likely means they have decent jobs, and money in their pockets.

So, in this macro- political/economic cycle, *WHO* exactly gets the credit? Which leadership created what we’re seeing and experiencing? Uhh, huh. You know the answer.

*Six months from now* what’s most likely to happen when we look around, we will see a prosperous country with a very strong economy. Not perfect, of course. But almost all leading economic indicators are robust at the moment, and trending upward. That will certainly be the case heading into 2025. That’s been the reality for most of this past year and it has nothing to do with who won the 2024 election. Using a construction metaphor, our economic foundation was cemented and cured some time ago.

However, when Trump enters the White House in early 2025 and Republicans are in charge of all the branches of government, it will be very much like early 2017 — deja vu all over again. That’s when the exact same thing happened — as Trump won the and Republicans took full control of Congress. Then and now, they inherit a healthy economy. And so, they will be handed the keys to another blue Toyota RAV. Nothing fancy, but it drives comfortably and gets us where we want to go. Let’s remember the last time Trump grabbed the keys he went and painted it red, the economy eventually ran out of gas and the country was flipped upside down into a ditch.

Shiny objects always grab our attention. Just ask the fish caught on a hook. New things are usually exciting. Voters often clamor for “change,” not realizing that some changes will not be for the better. Indeed, perception is never quite reality. Eating a giant bag of candy might be tempting but what tastes good now might become a case of stomach sickness later.

Many things, including the economy, will look like they’re much improved under Trump. At least for a while. Then, the corporate tax cuts will come. Government programs will be cut. The deficit will skyrocket to all-time highs. And, there’s the vast unknown.

Then, we’ll see what happens.

Let’s see how many new apartments are being built four years from now.

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Note: Sprawling growth isn’t entirely a good thing. Here in Las Vegas and all over the southwest, we’re already in the midst of a serious water crisis. So, where will the water for all these new homes and apartments come from?