Saturday, January 31, 2026

Stanford Economic Projections 2026 (Sally Thinks of Solutions and Concerns)

(Illustrative Only)
Sally joined the hypthetical
Feather Party that doesn't
exist at this time in history.
It's a philosophical discussion on 
a third party of independents
that do not work with special
interest, cap donations and vote based
on an agreed upon annual
 decision making matrix. Each member is 
encouraged to vote their 
conscious and party line
votes are not allowed. 
It might be nice for
the young to develop their own party
and raise their own concerns.
 
She remembers growing up
poor and wants to help others.
She is tired of the political
stagnation and lack of 
focus on what matters. 
She believes the dream should still
live on but that will require
a new way of thinking about
a modern world.

She knows people need opportunities
and she supports small local businesses,
education, the arts
as well as the redevelopment of
small towns through export
oriented products.

Her economic research tells
her that a balance of different
types and sizes of businesses in the market
makes more sense but she
has a hard time getting through
to other politicians who are 
caught in their older ways of thinking.
In some cases financial interests.

She thinks it is time for change 
and wanted to work with other free people to
solve the problems entrenched
interests have historically struggled with.
She supports broad based capitalism
rooted in performance and merit
and not the most connected.
Money needs to flow more freely from the top 
to the botton and she can't think of any better
way than to foster entrepreneurship
and adjust government policy.

The shift in labor growth from production to service also suggests we may not be as
 innovative and productive
in new products as we should be to increase
growth beyond what emerging
markets have done. In theory, an emerging
market within a stable seasoned market
through economic cluster development.
Something emerging markets might not be
able to do because they can't hedge
an existing mature business infrastructure
to support smaller creative destructions
of innovative development.

Similarly, connected folks hanging
on an island further solidifies the concern 
over social influence on economic exchange
as well as decision making capacity.
She would like an independent
investigation into foreign influence on the island. 
It could present an unkwown
 economic and social risk.

Her hope is to serve average people through
a more direct line to get their voices heard.
She knows she will be a target for doing
the right thing to help her people but honor
is important here.

Each member comes with their own
perspective and they
can work within the same party.
It is ok to disagree with each. If you
don't like what Sally thinks vote for
a different free minded thinker.
Its simple. You vote the quality of character, 
the ideas, and the solutions.

*For philosophical discussion.
2026 is shaping up to be an interesting year as various policies and changes begin to show their long-term effects. Some people will see these policies as beneficial, while others will disagree, and economic research will play a key role in helping clarify which approaches work best. Real-world outcomes will also reveal the value of different economic ideas, and perspectives will naturally vary across different schools of thought. 

There are many outside factors that can’t be controlled, and those will shape results as well. Projections are useful because they help outline what the coming year might look like, but they are never perfect. They rely on past behavior, and unexpected events can shift assumptions quickly. COVID altered long-standing expectations, and AI technologies are reshaping them again, so even the most reasonable forecast can change based on what actually happens. It is normal.

The best approach is to read broadly, stay informed about how policies interact with economic conditions, and form your own conclusions as new information emerges. I like this projection. It seems well rounded.

The following bullet points are taken from US Economy 2026 Stanford Projections

  • U.S. economic growth remained solid in 2025 thanks to consumer spending, real wages and stock market gains, but uncertainty persists on key fronts.

  • Federal Reserve faces a stagflation challenge in 2026 if inflation stays above target while job growth weakens, complicating interest rate policy.

  • Decisions about tariffs — and whether the administration maintains or rolls back the current high tariff regime — will significantly influence prices and domestic production costs.

  • AI’s impact on the workforce has been limited so far; adoption remains uneven and full effects on jobs and productivity will unfold over many years.

  • Labor market shows slower job growth and rising unemployment, with modest growth expected in 2026 but downside risks remain, including potential effects from AI adoption.

  • Health care costs have become central politically, with recent policy shifts leading to higher insurance premiums for many Americans and likely shaping reform debates.

  • Rising federal deficits and debt present fiscal challenges, with debt service costs poised to increase and crowd out other spending.

  • Financial markets show signs of a possible AI-related valuation bubble, with stock prices of AI-exposed firms high relative to fundamentals; a correction could dampen growth.

  • Affordability concerns (housing, health care, utilities, etc.) remain politically salient, with debates over regulatory barriers and policy solutions likely affecting 2026 outcomes.

  • Electricity price increases, driven by multiple factors including grid costs and demand, contribute to cost-of-living pressures and are difficult to resolve quickly. 

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