Image by: Myfuture.com
By Michael Sterling
A lot of people are ready for this year to be over. Our economy has had a domino effect and the past two and half years have been full of anxiety, both for company owners and their employees. However, there still is light on the end of this financial tunnel.
Economists are saying that 2014 has more promise than previous years. But how reliable are these predictions? How do they affect you? Most importantly, what can you do to be sure that you land on top at the end of this year?
Giant Growth Potential
Since the end of the recession in 2009, America has been trying it’s hardest to gain it’s momentum back. The labor force is continuing to grow and our technology is starting to improve. Not to mention, the U.S. is slowly beginning to depend less on foreign oil and other foreign manufacturing, and has been increasing production in domestic materials.
This is a fine example of how bad things can create business growth. According to economist Bill Conerly, because of the high unemployment rate, it makes the ability for business expansion much easier since the extra costs go towards needed machinery like oil drilling rigs and mining equipment.
All of these things together leads to a decent prediction of where our economy is going. Other industries, like Real Estate, are helping as well. With the rising prices of homes, fewer home owners are victims to unfair mortgages, plus their personal net worth is more, which can affect their taxes and other costs in a good way.
Steve Blitz, chief economist at ITG Investment Research, thinks that our economy will rise in 2014 saying that GDP growth in the 3.5% to 4% range is possible, and monthly job growth could peak in the 300,000 range. Plus, large numbers of young adults buying houses and cars give a boost to the economy, as well as less defense spending due to the draw-back of troops in Iraq and Afghanistan.
Subsequent Downfall Possibility
Other experts have a different take on it. Some say that the federal government’s spending don’t side too well for business owners.
According to Alan Beaulieu, economist with ITR Economics, tax hikes and spending cuts will drag the economy down as 2013 progresses, leading to a mild recession in 2014 and a severe recession in 2019 that will come as a surprise most Americans.
Since head politicians aren’t exactly making it a top priority to address our federal debt, it creates more anxiety moving forward with company investments. And that can be more damaging than any policy.
Probably the biggest economical concerns on economists’ minds have to do with “Obama Care,” and other finance reform laws. These kinds of policies are causing employers to stall on hiring new employers due to costs. However, it is still a bit unclear as to how the details of such laws will affect them, and it’s thought to be more clear by the beginning of 2014.
How Can You Benefit?
Lucky for you, due to the passing of recent legislation, lower interest rates are inevitable. If your company depends highly on credit, this is something you can take advantage of. If you have good credit, it is incredibly easy to take out a loan nowadays, and will be even easier in the future.
Start now! By creating a plan of action towards reaping the benefits of the economy as a whole, you will be more likely to land on top by the time 2014 rolls around. The first thing you need to do is stop worrying about the future. Focus on what you have today, and the future will be better.
If your credit is bad, this is the best time to fix it. Give yourself the ability to invest in your company‘s need for supplies, before the rise of more jobs make manufacturing more difficult. Enjoy the growth while it lasts, just don’t put the cart before the horse; instead, use the knowledge to your benefit and don’t spend money just because you have it.