A major issue to this economy, Swonk said, is the current version of an energy crisis. Prices for gasoline and heating fuels are eating a higher share of household budgets. "That means for many, going to Target rather than Fields; renting DVDs rather than going to the theatre and ordering delivery rather than going out to eat," she said.
Swonk finds that with the housing market slowing down, there will be less spending on residential investment. "Spending on household items had been holding up the economy for quite a while. Refinancing has declining as well."
Swonk believes that there have been structural changes to the American economy "that will make it harder for everyone individually to advance." She adds "We are now in an idea-based economy rather than one based on manual labor." While reflecting on corporate America, Swonk said that record profits have triggered corporate capital spending, which will go to energy-saving technology and energy efficiency.
Recommended For You
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
