The Advocate's 2007 Crystal Ball Predictions
Here are the Small Business Advocate Crystal Ball Predictions for 2007.
Prediction: Reports of the death of the U.S. economy are greatly exaggerated, which will be evidenced by a very healthy annual growth rate of 3% in 2007.
Prediction: The U.S. economy will produce over 1 million new jobs in 2007, resulting in the annual unemployment rate remaining below 4.5%.
Prediction: Finding qualified people to perform 21st century assignments will continue to be the single greatest challenge reported by small business owners.
Prediction: In spite of the previous prediction, total private (non-farm) employment of U.S. small businesses, including owners, will exceed 90 million in 2007, increasing the majority position small businesses hold in total U.S. employment.
Prediction: Inflation will be higher than the Fed would like, but will average no more than 3%.
Prediction: The Fed will not raise interest rates in '07, but will make one rate reduction in the second half.
Prediction: Crude oil will remain above $60 per barrel, with gas prices averaging above $2.25 per gallon.
Prediction: Defying economic reason in favor of politics, the 110th Congress will raise minimum wage from $5.15 per hour to $7.25 before February, and President Bush will sign the bill.
Prediction: Denying 20th century history and 21st century economic reality, the 110th Congress will prohibit new trade agreements and pass protectionist laws.
Prediction: In spite of overwhelming evidence that the 2003 tax cuts simultaneously propelled the U.S. economy into a sustained expansion and increased federal tax revenue, the 110th Congress will, incredibly, propose tax increases.
Prediction: Disregarding appeals from international groups, the Iraqi government will hang Saddam Hussein for crimes against the Iraqi people. (Editor's note: Jim's next year predictions are compiled the last week of the current year; this is the first time one his predictions came to pass within three days of making it. Most were surprised at the swiftness of this action by the Iraqi government.)
Prediction: With the execution of Saddam Hussein, and the continued regular executions of captured insurgents demonstrating the will of the Iraqi people, the maturing Iraqi government will gain stature and begin functioning as a national government.
Prediction: Because of the world stage created by the 2008 Summer Olympics in Beijing, China will make sure North Korea doesn't rattle any nuclear sabers in 2007.
Prediction: Among Republican presidential candidates for 2008, Mitt Romney will be the front-runner.
Prediction: Among the Democrat presidential candidates for 2008, Hillary Clinton will not be the front-runner.
Write this on a rock... My three year record: 6 for 12 in '06, 8 for 12 in '05, and 9 for 13 in '04. How'd you do?
Jim Blasingame
Small Business Expert and host of The Small Business Advocate Show
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