Does the big picture in the USA scare anyone else?

August 26, 2023
by a searcher from University of Virginia-Darden - Darden School of Business in Richmond, VA, USA
Does the combination of growing public US debt, high interest rates, and low labor participation rates scare anyone else who buys small businesses for a living? I'm most concerned that US aggregate demand will drop when deficit spending slows. And I ask this because I am considering buying more businesses in Virginia, a state whose economy is only as robust as it is because of the deficit spending of the federal government. That aside if you have a home healthcare company and entitlements are cut in the future how do you mitigate the risk of that?
from University of Texas at Austin in Austin, TX, USA
You also say you're concerned about "low labor participation rates", but the other side of the coin is that we're at <4% unemployment rate, which is another way of saying "full employment". Certainly a concern for SMB owner, but also a sign of a robust and growing economy. One reason we have low participation rates is our again economy + long covid effects cause some to leave the labor pool to take care of relatives and friends. That's certainly an oppty for home health care providers.
I don't see entitlement cuts for home healthcare on the horizon with our aging population but who knows in this environment.
My point is that, while there are many ways to look at the economy, I believe there are more reasons to be optimistic than pessimistic.
from Northwestern University in Chicago, IL, USA