What I don’t see in the near future is economic growth. There does not seem to be a wave of innovation that has given the US the steam to be an industry leader. Venture capital is not much there. IPOs aren’t there. New industries are moving to tax friendly nations. Where & what will be the next new “things” that propels us into 5% GDP growth & increased wages? (like tech).
Also, I think that people are saving more money because they are hoarding it. No one wants to spend in an uncertain environment. And because of that, tax revenues to the treasury will be lower again this year. (good). And the gov’t will be looking for more $, again.
I wouldn't call it hoarding, but rather behaving sensibly. I am going to have a drop of income this year of about 8%. Fortunately, it looks like I still have choices to make. I can cut back on funding my retirement account or continue to fund it and cut back my consumption. After taking a nice hit to the 401K, It wouldn't be wise to cut back on 401K contributions at this stage in my working career.