I don’t want to sound like a prophet of doom and gloom. However we will face many economic challenges in the near future.

“What? Did you just say about more economic problems? Don’t I have enough on my plate right now? Do I want to read more depressing stuff?” I am sure that many of you experience similar thoughts right now. Well, it’s better to plan for what lies ahead than face problems unprepared.

1. Income gap

The gap between rich and poor will continue to widen for the following reasons: corporate mergers, outsourcing and high prices.

Corporate mergers will result in fewer companies controlling large portions of the market. There is no incentive to raise salaries or lower prices with little or no competition.

Many businesses will continue to outsource jobs to other countries to save on wages. Food and energy prices will probably remain at today’s level. They might rise a little bit or fall somewhat, but one thing is for certain – really low prices that we used to enjoy are in the past. Anyone hoping that gas will cost $1.20 a gallon again is kidding himself.

2. Unemployment and government help

Unfortunately many people who will lose jobs due to economic changes won’t be able to find new ones. (Read my article about Career Trends) Those who never thought applying for help will have no other choice. At some point government would have to take care of them. Number of people receiving welfare will increase two or three times at the very least within next decade or so.

Of course government might take a different road and create more federal and state jobs in order to employ more people who lost work in private sector.

Yet I wouldn’t be surprised if government required people who receive assistance perform some kind of public service.

3. Credit markets

We are in a middle of a huge mortgage and consumer credit crisis. Its affects will be felt for many years to come.

One sure consequence is that it’s going to be harder to obtain all types of credit: mortgages, car loans, credit cards and business. Borrowers, even those with a good credit history, will face much more scrutiny when applying for loans.

Making payments on time is extremely important these days. Even one blemish on your credit report might cost you a loan or cause higher interest rate.

4. Positive changes

Did you have enough bad news? Here is a good one. Economic challenges will have a positive effect on many people as well.

First of all we are going to become more inventive and resilient in order to survive in a new world. Also savings rates will increase since credit is not going to be readily available. People will do much better job in terms of financial planning and investing. Also more individuals are going to start their own businesses rather than working for someone else.

It’s important to realize that economics of tomorrow is going to be very different from what we are used to now. People who understand upcoming changes will have easier time adjusting to new realities.