There are many reasons to have a positive outlook for the future of the U.S. economy; however, inflation could be on the horizon, says Alan Beaulieu, president of the Institute for Trend Research (ITR), Boscawen, N.H.
Beaulieu made the prediction in his keynote speech at the 62nd annual National Auctioneers Association Conference and Show on July 13.
“Understand we are not the late great United States of America,” he says. “We have a lot of things going right for us, and our business models and our different business plans should reflect that.”
In “The Future is Your Decision,” Beaulieu made the point that people should have more money to spend in 2012, and he says the stock market will do well. He says another recession is likely in 2013-2014.
Despite media reports, he says the overall employment trend is good because private-sector employment is increasing.
Plus, he says, banks have a lot of cash and they want to lend it to qualified borrowers. Banks have $1 trillion in excess capital reserves, and consumers have saved $600 billion.
“We have enough cash to make an offer to buy Canada,” he says. “The potential there is huge as we go forward.”
One potentially bad spot, though, is inflation, as Beaulieu says it would affect employees’ standards of living. He says that as inflation hits, raises might be in order to keep employees satisfied and, as a result, maintain good customer service.
As the potential for tax increases are looming, Beaulieu says it’s a good time for business owners to be more vocal and to talk with their tax advisers.
In the coming years, Beaulieu also predicts the boom-bust cyclical trend of the past 20 years will begin to subside in the U.S. economy. He says the “recession” word has been blaring; however, he says there’s plenty of potential for the country’s economy.
“If you’re worried about leaving something better for your children than what you had before, if you’re worried about what your future will be ― understand it’s better, it’s brighter than it’s been in a while,” he says. “We will fix our problems.”