Levy Forecast Warns Not Much Will Be ‘Normal’ about the Economy During 2010s

Dwindling Pay, Stunted Credit, Declining Asset Prices, Chronically High Unemployment Will Mark the “New Abnormal”

NEW YORK--(BUSINESS WIRE)-- Those who talk about the economy of the 2010s as the “new normal,” with little change other than GDP growing at a slightly slower pace, may be “dangerously unprepared for what lies ahead,” warns economist David Levy in the just-published December Levy Forecast.

According to Levy, the 2010s will be characterized by many significant disruptions to “normal” economic activity.

The Levy Forecast, the nation’s oldest newsletter devoted to economic analysis, says the “new abnormal” will be characterized by such economic phenomena as:

• Consumer price inflation will fade away, giving way to periods of deflation.
• Unemployment will be chronically high, averaging 8% or more over the next decade.
• Average pay raises will keep dwindling, maybe vanishing altogether.
• The mortgage default crisis will become much worse.
• Private credit extension will remain stunted.
• Asset prices will experience secular declines.
• Economic volatility will increase; expansions will tend to be shorter and recessions more disruptive.
• Trillion-dollar deficits are likely to persist for years.
• Around the world, popular protectionist sentiment will increase, and there will be no monolithic emerging market economic boom.

One dominant economic force, says Levy, will be government, which “must be viewed as a much more important influence on the economy and the financial system than in the past.”

About The Jerome Levy Forecasting Center

The Jerome Levy Forecasting Center LLC – the world leader in applying the macroeconomic profits perspective to economic analysis and forecasting – conducts cutting edge economic research and offers consulting services to its clients. The goal of the Levy Forecasting Center is to improve its clients’ business and investment performance by providing them with powerful insights into economic risks and opportunities – insights that are difficult or even impossible to achieve with conventional approaches to macroeconomic analysis. Additional information may be found at www.levyforecast.com.

Note: The full Levy Forecast dated December 22 is available to the press in PDF format by contacting Andrew Edson & Associates – [email protected] or 516 850 3195.

Andrew Edson & Associates, Inc.
Andrew Edson, 516-850-3195
[email protected]
www.edsonpr.com
or
The Jerome Levy Forecasting Center
Kevin Feltes, 914-666-0641
[email protected]
www.levyforecast.com

Source: The Jerome Levy Forecasting Center LLC