Dec 26

Dec 26 2022: What to Expect

The New Year Will Include Focus On Local Elections, Continued Home Real Estate Increases And More

By M.H. Jim Estepp

2022 will be an unusual year for many reasons, none the least of which is the economy and COVID 19. The combination of these two-phenomenon working at odds will produce both a sort of paranoia among the public and continued uncertainty overall.

First, high inflation will continue to reap havoc on consumers, small businesses and much more. Most experts do not see inflation (the highest in 40 years) letting up anytime soon. One thing is for sure, if the fed continues to print more money and deficits rise at the federal level, it will be hard to tame inflation in 2022. The price of gasoline will also continue to increase or remain at its current high price into the new year.

Myriad opinions exist as to why we are plagued by high energy costs, but again federal domestic policies and moderate OPEC output are mostly to blame. The price of fuel oil, natural gas and other energy for heating will continue upward or remain high well into the year. We can also expect food prices to remain high. This problem, coupled with supply chain and worker shortages make up a complex set of obstacles that impede lower consumer prices. Wages, however, can be expected to rise as employers recognize near double-digit inflation will require some increases in compensation. The retention of workers in a COVID environment will also necessitate salary growth.

Housing prices will remain at higher-than-normal levels, with an overall shortage of units In the metro area. County sales prices of new and existing homes will continue to remain above the norm. Fed policies effecting interest rates will have a significant impact on this sector of the economy.

COVID 19 has been less predictable than scientists would like. We can glean this from the multiple opinions, even among the medical and health care communities, whom we consult. It seems safe to say that Delta and other variant cases will continue to rise, at least until mid or late January. It is difficult to predict what the Omicron Variant will do but it has surpassed Delta as the dominant variant in the U.S. Vaccines are still the front line of defense but the focus on treatments will pick up, as well as testing capabilities. This virus will continue to be the number one problem facing our society into 2022. Although we are confronted with uncertainty and anxiety, 2022 offers a glimmer of hope that the Pandemic may be winding down and we could be entering the endemic period, like the seasonal flu. Let us pray that is the case.

The new year will be an election year. Multiple candidates have announced for different offices, from governor to school board Members. Several of the races will be quite heated and offer policy extremes. Although it is hard to predict the outcomes, Virginia’s recent statewide elections offer some insight into how voters are thinking. Particularly as it relates to school board races and education policies. Greater transparency and parents wanting to be heard will get more focus from leaders.

With a Prince Georgian running for both Governor and Comptroller in the Democratic Primary Elections, much is at stake. What is certain, leadership styles and policies in county governance could drastically change, based on election outcomes for County Council and School Board races.

In spite of some of the gloom and doom with which we are confronted, Prince George’s County will continue to demonstrate optimism about the future and well-being of our residents. We will also continue to be blessed with stellar leadership at the top of our government and human resources will continue to be our greatest asset for achieving a successful 2022.

A source close to my home informs me that Bell Bottom Clothing will be back in the new year. OMG!

President/CEO of the Greater Prince George’s Business Roundtable and the Andrews Business & Community Alliance