What Do We Do Now?

Economics provides the framework for looking into the future. However, it is probably never good to bet the bank on anything, but households and businesses do it every day. They make retirement plans, put into motion long‐term business plans, or make major capital investments that depend on certain circumstances holding true. The simple fact is that conditions change and recognizing they can and do change is the key to success. This chapter discusses some of those potential trends. Context makes one consider whether the current common knowledge makes any sense. It requires one to factor in not just what has happened, but what might happen in the near and often distant future. Conditions change and the world evolves; economic relationships are not constant. If the belief that the rate of change accelerates over time is correct, trends and patterns might work for only limited periods. Economic decisions must consider the current and soon‐to‐be‐different context.