Episode 30 – David Carnes: The Economy of the Past, Present, and Future

David Carnes

David Carnes

Before the new year ended, I interviewed my good friend and economist, David Carnes.  Now that we have entered a new year, I invited David back to discuss the 2015 economy, and we are also going to take a look at the coming economy in 2016.

Also, for those who are Star Wars fans, we will examine the impact of the newest movie: The Force Awakens.

I asked David what he thought of the 2015 economy, and David told me that he would rate the 2015 economy a B. He says it was a good year; not a great year, but a good year.

We are better economically than we were one year ago.
— David Carnes

We have watched the Federal Reserve just recently raise interest rates, and I asked David about this move that seems to be an attack against the United State's economy. His answer made so much sense when he explained that inflation is under control, and unemployment is back down to approximately 5%, which is all good. This is why the Federal Reserve raised interest rates.

The Fed protects us by pulling the punch bowl away just as the party is starting.
— David Carnes

I asked David about the economy closer to home; how is the economy of the Inland Empire, and what are we facing in this coming year?

Education is the biggest issue in the Inland Empire. Turning out a larger percentage of college educated people will help this area.
— David Carnes

Back to the world economy, I reflected on the country of China. A wide concern across the U.S. is if the Chinese economy were to crash, it could impact the average American. In pointing to this concern to David Carnes, he pointed out that we may be overreacting.

We have worried about the Chinese economy affecting us for nearly 15 years.
— David Carnes

David sees the economic trend continuing as it is far into 2016. While it isn't fantastic, the economy is good and should maintain stability.


This article on LinkedIn pointed out 4 trends to watch in 2016:

  • Cities and States will play an important role in the 2016 economy.
  • Workers commuting long distances for the best jobs.
  • Workers will find new jobs through friends and family.
  • The freelancing economy will grow even stronger.

With the discussion about the economy winding down, David and I lightened up the subject when we took a look at Star Wars.

If I had to choose, I would be a Trekky.
— David Carnes

Disney purchased the Star Wars franchise from George Lucas for $4.05 billion in 2012. Many people wondered if this was a wise move by Disney.

On Christmas day, The Force Awakens set both a Canadian and a U.S. record for the largest box office sales with $49.3 million, Disney reported. That topped the previous record of $24.6 million that was set by Sherlock Holmes in 2009.

According to this article at the Huffington Post, The Force Awakens is on track to be the fastest film to reach $1 billion in ticket sales.

It is a good movie that no one expected great things from.
— David Carnes

Whether or not you are a fan of Star Wars, you will enjoy this conversation with David Carnes. It is time that we all hear a positive and upbeat look at the economy of the United States and the Inland Empire. So enjoy this podcast looking at the economy and Star Wars with economist David Carnes.

Links to People and Things Mentioned in the Show

Opening Music: "The Red One" by John Scofield and Pat Metheny off their album I Can See Your House From Here

Closing Music: "Magic Beans"  by Peter Mayer off the album Million Year Mind