American economy follows a trajectory of a wild rollercoaster. The wheels have come off several times, but the wagon is still on track, speeding faster than ever.
Similar to the other 49 states, Florida is bracing for signs of economic turmoil. As a result, we can expect several black swan events soon, with some even hitting the peninsula in 2022.
A horrible hangover from money printing
Inflation has occupied the media space just as much as COVID-19 this year.
This economic phenomenon affects the prices of most goods and services, making everything more expensive. It's a tax for owning and using money. Inflation rose to 6.8% this November, marking the highest rate in the last 40 years. As an answer, stock markets have been artificially rallying to all-time highs.
FED argued this inflation was transitory at first, then quickly changed the tune. What could they expect from printing money like there's no tomorrow?
Aggressive money printing has never resulted in anything great.
Inflated assets and property prices
The housing market is "nuts and getting worse," said Barbara Corcoran for Yahoo Finance. She's right. But everyone can see it from a mile away. Property prices rose by 23.9% in 2021. Poor Millennials have missed yet another chance to create generational wealth like their parents.
FED's policy directly influenced the housing market in Florida. As a result, FED's policy could also hinder its growth next year, especially if they raise interest rates by a few points to prevent a total economic downfall.
Florida to face an even wider inequality gap
Florida occupies the bottom of the equality list. The Sunshine State ranks 49th in terms of income inequality. The top 1% has earned almost 40 times more than the bottom 99%. So rich are getting richer, and poor are getting poorer.
Deep inequality brings other riders of economic apocalypse.
Secession, civil war, and dividing America into Red and Blue states has been emerging topic. The rhetorics are getting more aggressive lately. Starting with January 6th, House Representatives and Senators have only amped up their calls to arms. The latest polls show that many Republicans in the South want to secede from the union.
While secession is highly unlikely, Americans don't live in precisely divided Red and Blue states. If you think of each state on its own, they're mostly purple. Major conflicts are highly unlikely, but you can expect a more aggressive tune in the political arenas.
Are you worried about Florida's future?
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