New President; New Challenges?
By Future Energy Solutions CEO Daniel Gold
Welcome to 2017! Today, we inaugurate Donald Trump as our 45th president. Whether you like him…or not…isn’t part of this discussion. What is, is what challenges might lie ahead as a result of his policies.
As a successful businessman, I’m convinced one of President Trump’s primary initiatives will be to stimulate our economy and promote economic growth. A good thing, right?
Yes…and…No. Here’s what I mean by that.
Economic growth is a good thing, in that it can increase wealth, reduce poverty, improve our standard of living, and boost the quality of health, education, technology and infrastructure. In turn, those improvements also help reinforce the overall economy even more.
A strong economy improves our position in the global marketplace – also a positive. But there’s a flip-side to economic growth. Isn’t there always?
A growing economy frequently leads to increased inflation. As an economy strengthens, interest rates tend to edge up. The Fed rate already was hiked a quarter of a point late last year, and we’re told to expect at least three more hikes this year. With a strengthening economy comes increased prices for the goods we use. In other words, as inflation increases, it will become more expensive to do business – including for increased utility costs.
As I see it, our new president has quite the tightrope to walk – build the economy…but not too much. Otherwise, the positives he achieves could be overwhelmed by negative after-effects. Only time will tell whether he has the right plan to steer us to increased prosperity…and Congress supports the right moves.
Meanwhile, businesses can hedge against inflated power costs with Future Energy Solutions’ Gold Initiative program that replaces energy-consuming exterior lights with no upfront-cost energy-efficient systems.
Should 2017 also be the year you take the question marks out of your energy bills?