Barnes Dennig joined with DBL Law and Huntington bank to welcome back noted economist Alan Beaulieu to provide his outlook on the economy in the near and distant future. Beaulieu is predicting a slowing down of the growth rate of the economy in 2015 that will pick back up again toward the end of the year and into 2016. The low interest rates and willingness of banks to lend money makes it a great time to invest in business methods that will increase cash flows. These cash flows will be needed toward the end of the decade as Beaulieu is predicting another recession in 2019.
Beaulieu provided a list of items that are and will be problems for the economy
- S&P 500 gives way to steeper-than-median decline
- Ongoing high unemployment is perception not fact
- European economy is slowing down
- Higher Affordable Care costs sap the consumer
- Decelerating Corporate Profits
- China’s Debt problems
Some of these items, like the European economy slowing, will contribute to the recession in 2019. Beaulieu suggests using the positive economic forces to prepare for the upcoming recession. Other items, like China’s debt and increasing health care costs will contribute to the predicted great depression in 2030.
State and Local
Ohio follows the trends of the national economy. Beaulieu praised Ohio’s ability to attract new businesses and provide opportunity for business expansion. Many local Ohio counties have a higher distribution of manufacturing employment than the national average. Beaulieu provided the following tips to take advantage of the predicted economic factor for the area:
- Take advantage of the Ohio Small Business Deduction
- Bring in talent to Cincinnati by selling the benefits that come with living in the Greater Cincinnati Northern Kentucky area
- Automate what you can in factories as wages will undergo inflation
- Recruit out of trade schools and encourage kids to look for a career in manufacturing by emphasizing the opportunities that come with skilled labor
- Spend money on training new staff and have people sign contracts to keep the talent you have as headhunting will become prevalent as wages increase and skilled labor decrease
For more information on Alan Beaulieu and his economic predictions, his book, Prosperity in the Age of Decline, is now available from Barnes and Noble.