United States

The Real Economy: Volume 74

Inflation-adjusted interest rates, investment and the middle market

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A confluence of events and policy shifts has coalesced into a unique opportunity for middle market firms to make long-term strategic investments in their businesses. Interest rates, once adjusted for inflation, reside in negative terrain. This implies that firms should take advantage of those historically low borrowing costs to increase productivity-enhancing investment to prepare for the intense competition that will characterize the post-pandemic economy.

In that economy, it will be necessary for businesses to pull forward investments in software, equipment and intellectual property that would have occurred over the decade into the next 12 to 24 months to prepare for the reopening of the $21.7 trillion U.S. economy and the global supply chains that support it. The potential return on investment amid real negative interest rates demands that middle market businesses act boldly and decisively to integrate advanced technologies into the production of goods and provision of services to prepare for what will be a very different economic and financial landscape than before the pandemic.

In this month’s The Real Economy, we examine this important time for middle market businesses to strategically invest, forecasted economic growth, the next round of anticipated fiscal aid, Biden’s tax plan, OPEC’s response to demand drop, as well as health care and life sciences deal flow. Download the full report.

IN THIS ISSUE

Inflation-adjusted interest rates, investment and the middle market

Inflation-adjusted interest rates, investment and the middle market

A confluence of events and policy shifts has coalesced into a unique opportunity for middle market firms to make strategic investments.

Updating U.S. GDP forecast: Fiscal firepower to bolster growth

Updating U.S. GDP forecast: Fiscal firepower to bolster growth

A confluence of recent events has set the stage for a significant increase in fiscal outlays this year that will boost growth in the economy

Biden outlines next round of fiscal aid

Biden outlines next round of fiscal aid

The ambitious plan addresses the public health crisis, pandemic economy damage and the rollout of a national vaccination program.

President Biden's tax plan

President Biden's tax plan

Taxpayers should familiarize with Biden’s plan, remain vigilant for developments and position themselves to act at the appropriate times.

OPEC’s response to a drop in demand

OPEC’s response to a drop in demand

According to recent data, gas prices for consumers peaked in late 2018 as the global manufacturing recession took hold.

Health care and life sciences deal flow

Health care and life sciences deal flow

This year, the health care sector could not even wait until the second full week of January to kick off an acquisition announcement spree.

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