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How the Government is Threatening Your Business – and What To Do About It

A Pakistani money dealer counts US dollar note...Government financial policies – and a lingering aversion to addressing the national debt – could spell trouble for your business. (Image credit: AFP/Getty Images via @daylife)

Think the national debt won’t impact your business? Think again. As James Kwak, co-author (with Simon Johnson) of White House Burning: The Founding Fathers, Our National Debt, and Why It Matters to You, revealed to me in a recent interview, “It’s quite plausible [the national debt] will start having serious economic effects within the next 5-10 years.” The government’s mix of high spending and deep tax cuts risks one of two negative consequences. The first, says Kwak, is that “over time, if the national debt stays high, investors will lose confidence in the federal government and interest rates will go up, which affects everybody because it makes it harder to do things like borrow money to build factories. Or the other possibility is the Federal Reserve might start creating a lot of money in order to fund the national debt and that could cause inflation.” Either outcome is bad for the economy – and your business.  Read More

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Posted on April 28, 2012, in #financing and tagged , , , , . Bookmark the permalink. Leave a comment.

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