Ominous Signs In the 2020 Economic Forecast

2020 Economic Forecast

\The stock market is booming as 2019 ends; however, that doesn’t necessarily mean that the national and world economies will be booming in 2020. Many economists are seeing some ominous signs in the financial landscape, and savvy investors are wise to take notice.

Wealth inequality

The growing inequality between the rich and poor is a political issue that 2020 United States presidential candidates including Bernie Sanders and Elizabeth Warren are focusing on. It’s also an economic issue because too much of a gap does not bode well for security in general and consumer spending in particular. Furthermore, this is a problem that looms large in any economic forecast for at least the next decade because the inequality is not likely to disappear any time soon.

Political uncertainty

In the United States, there is currently uncertainty about whether President Trump will be impeached and removed from office. In the United Kingdom, it’s not clear if and when Brexit will actually happen. In short, the market does not have a clear indication of how these situations will play out, so investors are hesitant to commit capital, and corporations are reluctant to make major commitments.

Furthermore, Wall Street may find itself on a very different playing field if one of the more progressive Democratic candidates gets elected. Warren and Sanders, in particular, have talked a great deal about taxing Wall Street in general; it’s possible that major corporations can roll with these changes, but there’s no way to know yet if they will actually occur. Tech regulation, in particular, is an area of intense concern as candidates talk up the possibility of taking on the tech giants.

Another potential problem is that troubled by political uncertainty in the United States, foreign investors may no longer be investing as heavily in United States credit and treasuries. The implications of a Warren or Sanders presidency, in particular, would mean major changes to regulations, taxes and other factors that determine whether investors in Europe, Asia and elsewhere look to the United States as an arena to put their money into.

What’s more, the debt of the United States government has long been high, and, following the recent cuts in corporate taxes, has gone even higher. This is simply an unsustainable situation for the world economy because the United States government is such a major influence.

Trade tensions

While the ongoing trade war between the world’s two largest economies – the United States and China – has shown signs of lessening, it is not certain that the conflict will be resolved any time soon. President Trump has indicated that he’s willing to negotiate; he’s also said, in effect, that he’s not ready to back down.

The truth is that Trump’s policy is a major factor in the decisions corporations make about spending, and there is just not enough information at the close of 2019 to make major calls. The result could be economic stagnation in both the United States and China.

How to Know if Franchising Is Right for You Introduction

How to Know if Franchising Is Right for You
How to Know if Franchising Is Right for You

Almost everyone with ambition at one time or another thinks about owning their own business. For many, it is nothing more than a passing thought.

Others give it more careful consideration, but they never follow through. This article is written to give those who are serious about business ownership some helpful insight.

Important First Step

The first, absolutely critical step is an honest self-appraisal. Sure, the thought of ‘being the boss’ appeals to almost everyone. It is too easy to consider only the fun parts. All too often though, the other side to those fun parts gets ignored.

That is, to coin a worn-out phrase, ‘where the rubber meets the road’. An honest inventory of self must also include those unpleasant ‘what-ifs’. Check out some of the more sobering questions below to help you decide if franchising is right for you.

Personal Finances

Money is the first concern. An unforeseen lack of it is also why most businesses fail. What is your personal financial situation? This includes every source of money you have. Total these. This is your business start budget.


Did you notice under Personal Finances we did not include loans? You must decide for yourself, but generally, loans are not a wise idea when starting a business.

Why? They must be repaid, with interest, whether your business venture succeeds or not. You are in essence doubling your load at the start line.

Loans unnecessarily encumber the whole process of starting a business. Now you have doubled your burden, the business and the bank.

Not only do you have all business startup responsibilities, you must now visit the lender monthly and hand him a goodly portion of your hard-earned profits.

Guess what. Whether your business generated enough earnings to make the loan payment or not, it is still due. Does this sound like something you would recommend to a friend?


Okay, so you have gathered and totaled all your financial resources. You now have a set figure in mind for your business startup. The next step is to select a business that has startup costs well within your finance pool.

By well within, we mean you have enough money to meet all startup costs plus at least 30 percent. Business budgets must always contain margin. Margin is extra money for when business expenses exceed income.

In the business world, it is commonly known as ‘staying power’. Do you have enough money to stay in business while potentially days or weeks go by without making any profit?

Franchising May Be the Answer

For many, the above concerns are enough to conclude that maybe business ownership is not for them. For the resolute among you, franchising just may be the best answer.

Franchising is basically buying into a business that is already successful. The originator of the franchise has already conquered the startup obstacles common with new businesses.

The brand is established. Demand for the product is already existent. Partnering with success is a much easier path than striking out on your own.


Business ownership is not for everyone, but franchising is definitely a much easier way to enter the entrepreneurial lifestyle.