Recently, I had a conversation with a client who is a small business owner. A question about taking chances in this economy was brought up. I mentioned that I have been concerned with the political environment and the over regulation that will create trouble for virtually all smaller business owners.
The low interest economy will have several negative affects as we move forward in time:
- People are borrowing more than they will be able to pay back.
- Savers are eating into their principle because their savings are not earning interest.
- Big businesses will displace smaller business owners.
- Fewer jobs will be created and technology will replace many “people” jobs.
- While some new employment will occur, it will mostly be in a non-traditional structure.
My advice to the business owner was to proceed with caution. Perhaps it is time to wait and see what happens over the next six months.