2010-2020
The average inflation rate didn’t change much from 2010 to 2020, only shifting from 1.6% to 1.8%. Median home prices, however, went from $179,900 to $259,906.
It started off with the S&P 500 remaining at 1,258 for both 2010 and 2010 while inflation doubled. Then, came the slow improvement of the economy caused by greatly accommodating policies by the Federal Reserve. During this decade, the federal funds fell to 0.09% from a previous 0.18%. This is exactly what America needed after the devastating effects of the prior decade.
Both consumers and businesses were allowed inexpensive borrowing, allowing the nation the economic growth it so needed. But, as we all know, it all took a sudden turn for the words with the outbreak of the Coronavirus. As COVID-19 spread across the globe, so did our economy suffer.
With more than 20 million jobs lost in a single month, unemployment rose to 14.7%. In March of 2020, the Dow Jones Industrial Average fell by 26%.
Though we’re still feeling the social and economical ramifications of the pandemic, the stock market seems to have done remarkably well. Prior to the election, filings for unemployment fell to 751,000, far exceeding expectations. Though the S&P 500 is still volatile, it also seemed to have recovered from the sudden plunge of August 2020.
As we can see, we can’t really name one single decade as being the worst or the best. All of them have seen ups and downs across the years, though we do admit some have faced better than others, at least when it comes to the economy.
This has also proven that wars have, for the most part, helped the American economy. Now, however, it looks like the nation might do well thanks to a global economy alone. Sound domestic policies, too, are to thank for helping us all out of recessions.
What do you think will happen in the following decades? Can you see a pattern? And, most importantly, what is the legacy we will leave behind to our children and grandchildren?
