CEO of Fulton Financial Advisors and Clermont Wealth Strategies David Hanson calls himself a fiscal conservative. However the veteran investment and financial pro has been around long enough to read the signs and make some wily economic predictions. During the Dec 13, 2017 JBN noon luncheon at Temple Center City campus this month’s guest speaker will share his assessment of what is ahead in 2018 and explain the confusing new Tax Reform Bill. “I’m bullish. In the short term the economy looks rosy. In the long term I see storm clouds on the horizon. The Trump budget needs to be 3% GDP (gross domestic product) growth for the next 10 years in order to balance the budget. If that doesn’t happen we will have to pay the piper down the road in the form of higher taxes or lower services” said Hanson. Currently GDP growth is closer to 2% and Hanson does not envision that changing much and hence the source for worry.
What does all this means for middle America and the majority of us? Is this similar to Reagan’s trickle down economics that many experts acknowledge did not work, “There are no easy solutions but this time is different. Everything looks solid across all metrics. The global economy has strengthened with the recovery of Europe, China and South America. Our economy too has slowly been improving for the past six to seven years and it doesn’t appear to be ending. There is low unemployment and no indication of inflation which has experts scratching their heads” added Hanson.
Hanson’s group manages 10 billion in investments and its parent company, the Lancaster based Fulton Bank is making a strong statement to become a player in Philadelphia by purchasing 19% of local Bancshares, owner of United Bank.
He says in recent years small businesses have not been confident and there is a lot of cash on the sidelines which needs to be invested. “If consumers are optimistic and put money into the economy it gets better, in essence, a self fulfilling prophecy. This new tax reform is trying to encourage businesses to invest in our economy” said Hanson. He will also touch on road blocks to business expansion such as the regulatory and permit burden, taking too long and making it too expensive to get a project completed.