I’m Mary Walden, with economist MW, welcoming you to the economic perspective. Today’s program looks at election uncertainty and the economy. Mike, it’s generally recognized that the economy – particularly the investing component – doesn’t like uncertainty. Some say this includes uncertainty about elections. Please explain why uncertainty in the economy matters, and why election uncertainty may matter more.
- Uncertainty matters because many economic decisions are based on long run expectations
- Buying a stock, buying a home, or a business building a factory – all are based in part on future financial returns
- If people are fuzzy about what those returns will, will reduce the desire to make long term spending plans
- Some say this uncertainty extends to politics
- Because elected officials can impact the economy with their decisions
- Problem is, while serious studies can find impacts of general uncertainty on the economy, finding impacts from political uncertainty is harder
- Nevertheless, a factor to consider
- I’m MW
Mary: And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.