Are We Ready?
Steve Mitnick has authored five books on the economics, history, and people of the utilities industries. While in the consulting practice leadership of McKinsey & Co. and Marsh & McLennan, he advised utility leaders. He led a transmission development company and was a New York Governor’s chief energy advisor. Mitnick was an expert witness appearing before utility regulatory commissions of six states, D.C., FERC, and in Canada, and taught microeconomics, macroeconomics, and statistics at Georgetown University.
Have you checked the stock market? Have you become more cautious about making big purchases? Or accelerated some in anticipation of price increases? Have you given a thought or two to your job security after hearing about folks who are refreshing their resumes?
If yes is your answer to any of these questions, count yourself in the mainstream. To cite just one authoritative tracker of how everyone is feeling about the economy, the University of Michigan’s highly respected Index of Consumer Sentiment fell to 50.8 in April, from 57.0 in March and 77.2 in April of 2024. Surveys of Consumers Director Joanne Hsu said this about the numbers:
“The decline was, like the last month’s, pervasive and unanimous across age, income, education, geographic region, and political affiliation.”
The public now expects both increased inflation and increased unemployment. Stagflation is what economists call those conditions.
Why does all this matter to the utilities industries? Well, suppose you’re concerned about the affordability of utility bills. Then consider that the challenge of making ends meet for many low- and moderate-income households is about to be exacerbated.