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The economy will improve in 2022


Republican dreams of taking back Congress in 2022 are based on voter anger over a bad economy, but estimates show that unemployment will reach a 50-year low and inflation will fall.

Republicans may not get the bad economy they desire in 2022

CNN reported on the 2022 economic forecast by Goldman Sachs:

After the slowdown this summer, the U.S. economy will get a boost from the reopening of the services sector, consumer spending and inventory replenishment, the Wall Street bank said.

That is why the labor market is likely to reach maximum employment by mid-2022, boosted by the “red-hot demand for workers,” Goldman Sachs said. The unemployment rate is expected to fall from 4.6% today to 3.7% by the middle of the year and 3.5% by the end of the year.

….

Although Goldman Sachs expects “persistent inflationary pressures” from rising wages and rents, it expects inflation to be only “moderately above” 2%. This would be in line with the Federal Reserve’s new framework for inflation, which requires prices to warm up a bit after years of subdued inflation.

Democrats might run on a boatload of achievements and a good economy

A good economy changes the 2022 account. Kevin McCarthy sets sky-high expectations that Republicans will win 60 or 70 House seats. If the economy is good, Republicans could have a much smaller majority, or the door would open for Democrats to defy history and retain the majority.

Republicans are firmly on team COVID. They armed the pandemic to slow down the economy and hurt Democrats.

The IDP has killed its own supporters to keep the coronavirus big, but those deaths could eventually be in vain if a good economy leads to strong Democratic medium-term performance.



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