The Economic Stimulus Bubble
I hope your week is off to a great start. I’m writing to share some thoughts on US economic policy and its potential impact on business. Let's start with a summary of recent news...
- On April 28th, President Biden announced the $1.8 trillion American Families Plan to provide child care, paid family leave and tuition-free community college
- On March 31, President Biden unveiled the $2.7 trillion American Jobs Plan (which is expected to increase the corporate tax rate to 28% and raise long-term capital-gains tax to 43.4%)
- On March 11th, President Biden signed the $1.9 trillion Coronavirus Relief Package
- On March 27th 2020, President Trump signed the $2.2 trillion Coronavirus Aid, Relief, and Economic Security Act (also known as the CARES Act)
Business leaders are understandably concerned that adding $8.6 trillion to the existing national debt will cause inflation. How much inflation is anybody’s guess. In addition to stock buybacks and paying down debt, prudent leaders are making capital investments now (while their purchasing power remains strong). I want to remind readers that a private talent pool is an appreciating asset and there has never been a better time to invest in one. The benefits include:
- Updating and automating your worker engagement processes
- Ensuring against future talent supply chain disruptions
- Rebalancing from an FTE to flexible/contingent talent strategy
- Ramping up/down rapidly to align with market fluctuations and workforce plans
- Re-engaging furloughed workers more efficiently
- Sourcing and cultivating a diverse talent pipeline
- Reducing contingent worker hard costs by 30%
- Reducing time-to-fill by 60%
TalentBelt specializes in managed direct sourcing and talent pool curation. We would love to elaborate on the business case and value proposition. Let’s schedule a call to discuss planning for the future.