Discover 3 crucial steps business leaders need to take to rise to the upcoming economic challenges and capitalize on the growth opportunities ahead!
Source: ITR Economics, January 9, 2025
The following are not New Year’s resolutions, but rather imperatives that happen to coincide with the start of the new year. If you wish to not only grow your business over the next several years, but also optimally position it for the 2030s economic depression – whether you plan to sell ahead of it or persevere through it – then now is the time to act.
1. Take the Depression Seriously, Because It Is Coming
The current state of affairs is not sustainable. Popular wisdom associates extreme government debt spending with the COVID years of 2020 and 2021, but that time merely set the tone for a new “normal.” The chart below shows US Treasury Gross Issuances, which provide an approximation for the amount of debt the federal government is willing/compelled to take on in order to provide the funding for its initiatives and responsibilities. We have been trending above the peak COVID level since year-end 2023. Debt spending is unlikely to moderate in the years leading up to 2030 as more baby boomers retire, increasing the load on Social Security, Medicare, and other programs.
2. Get Ready for Inflation
The headlines about consumer pain amid inflation are still with us, but not with the same fervor or frequency of the past few years. That is because inflation has eased. However, we expect this trend will prove temporary, for several reasons:
- The government spending outlined above, and the attendant increase in sheer liquidity, is one reason.