2014 Looking Ahead: The US Economy

On the economic side in 2014 expect the continuing symptoms of inequality between rich and poor to be prevalent. The markets will continue to ride high along with unemployment rates and poverty rates. In other words, the rich will keep getting richer and the ranks of the poor will continue to grow.

Watch for the finance sector to make a huge comeback in 2014. Despite the dysfunction in the finance sector that led to the excess and catastrophe of global markets in 2008, little has been done to actually resolve these issues. At some point in the very near future, investors are going to realize the gold mine that the Affordable Health Care Act has opened to the finance sector. Obamacare is indeed universal healthcare but it is not socialized healthcare. The difference between the two is what will cause American insurance companies to rake in profits in 2014 as the law begins to be cemented into everyone’s tax code.

This logic is very simple. If the government required every person in America to purchase a particular style of car, manufacturers of that particular kind of car would reap a windfall. Instead of a car however the government has mandated that everyone must purchase health insurance. Expect mergers among many of these companies, booming employment, and crazed stock growth as these companies benefit from the health insurance mandates. Do not expect healthcare to improve in 2014. Just as the illustration with the mandated car would not automatically lead to better cars, profitable insurance companies do not translate to quality healthcare.