Content excerpted from an article by Alex Gennis for the Princeton Business Journal. - In a recent address to Princeton University students and community residents at the university’s Whig Hall, leading economic journalist and business forecaster, Knight Kiplinger, said that the United States economy is facing an optimistic future despite recent events that may suggest otherwise. Kiplinger, a frequent guest on CNN and CNBC, and who has also appeared on “Wall Street Week with Louis Rukeyser,” “The Today Show,” “CBS This Morning,” and “The Larry King Show,” said, "(In the past 15 years) the U.S. rate of growth has been far and away the strongest among all the major industrial nations of the western world."
Kiplinger said America's prudent monetary and fiscal policies allow it to remain a leading player in the world economy. He praised the Federal Reserve Bank's slashing of short-term interest rates, President George W. Bush's tax cuts, and increased government spending for getting America out of a recession. As a result, U.S. consumers and businesses began spending again, low mortgage rates sent home prices soaring, and “In short, the United States became the world's customer of last resort or, in many cases, first resort."
The country’s prosperity is not without challenges, however. Kiplinger said despite economic advances, the United States must ultimately reduce its dependence on foreign oil, and tackle the huge cost of domestic entitlements such as Social Security and Medicaid among other issues, if its economy is to continue to set the pace for the rest of the world. Mr. Kiplinger also identified fierce global competition, a negligible savings rate, and a growing reliance on foreign capital to fund the U.S. budget deficit as the main economic setbacks that America must deal with.
Kiplinger stressed that to ensure continuing economic prosperity amidst the rapid rise of other economies, the U.S. must remain an attractive destination for foreign investment. "We're not the only show in town," Mr. Kiplinger explained. "We have to keep our economy flexible, welcoming. That's a tall order because we are the big boy on the block."
Regarding the U.S. consumer, he stated, "The United States consumer isn't exhausted — winded on the side of the track — but the U.S. consumer is getting a little tired pulling the wagon of global economic growth all by himself. We're moving into a period of a global economy of more balanced economic leadership — different parts of the world taking turns pulling the engine of global growth." He pointed out that contrary to common belief, the rise
to prominence of other economies does not threaten America's economic position, but rather creates better markets for U.S. exports. Mr. Kiplinger said, “With growth picking up in the rest of the world, there will be more markets for what we make."
More markets for American exports create more business for domestic service-oriented companies. It is up to each and every business owner to think creatively and decide upon a marketing plan that takes advantage of these timely opportunities. A great place to start is by registering for Move Ahead 1’s upcoming events and seminars. Act now while the “iron is hot” and ensure that a sustained, strong U.S. economy will remain in place for the foreseeable future and ensure the continued growth of your business!
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