July 17, 200816 yr I took it more as we have a reason to feel good about ourselves, but there is still hard work to do. Not lets act like there's nothing wrong here. People loose jobs, plants close, companies move EVERYWHERE, not just Ohio. There is a perception that's alive and well that all this negative stuff only happens here and that's what needs to be overcome perception wise. In the mean time we need to focus on making Ohio more friendly to investment and improving the lives of people who are here.
July 17, 200816 yr I took it more as we have a reason to feel good about ourselves, but there is still hard work to do. Not lets act like there's nothing wrong here. People loose jobs, plants close, companies move EVERYWHERE, not just Ohio. There is a perception that's alive and well that all this negative stuff only happens here and that's what needs to be overcome perception wise. In the mean time we need to focus on making Ohio more friendly to investment and improving the lives of people who are here. you and me both took it that way. geez you just can't win with some people.
July 17, 200816 yr I took it the same way. I thought Strickland's message was a positive one, and it's one that people need to hear. I think arenn's comment is a very valid one, though. I think the danger is that people think that you can throw a band-aid of positivity over the problems and make everything better. People need a reason to BE positive. I think that was one of the reasons I appreciated what Strickland had to say. It was more of a "Hey, guys .. I know we've had a lot of bad press, but don't believe everything you hear! Cleveland and Ohio have some great things already! STOP BEING SO NEGATIVE." And what's wrong with that? He made some very strong points about the positives in Ohio already. However, I do agree that if that's ALL we hear, then we (and Strickland) are kidding ourselves. We need to move forward and upward, but I think it's important to also boost the pride of the region through what it already has in light of all the negative press lately telling them otherwise.
July 17, 200816 yr Let's distill down the message of that speech in executive summary form. "While Ohio is struggling because of structural problems, most of what's hurting us comes from macroeconomic factors beyond our control, so obviously no one in Ohio can be held responsible for that. The way we will deal with this is through additional government spending and more regulations, combined with some educational investment. ... But I don't think this spin cycle approach is the right one.... Ok, I won't be so measured. What additional government spending? If you have been reading the editorials like I have for the last two years, you would know that Strickland is not raising Ohio spending. He is accomodating republicanism by not giving any more to needy Ohioans. What new regulations? Tell me, oh tell me! "Spin cycle approach"? Who on this thread is ascribing to the Governor an agenda that he does not have? ???
July 17, 200816 yr I didn't think Strickland's speech was spin. What is he supposed to say, Ohio is screwed? Let's go back forty years. Did anyone think the U.S. manufacturing base would have totally eroded in a generation? Yes, Ohio has failed in many areas, and I think Ohio politicians have become complacent. However, there were economic events beyond our control. I understand to frustration with the current economic conditions, but let's all take a depth breath. Where were Arkansas, Tennessee, Alabama, Georgia, and Texas fifty years ago? We often forget the south lost millions of people during the Second Great Migration between 1940-1970. However, these areas retooled their economies and are now experiencing significant growth. Fifty years ago, Midwesterners looked at Southerners as economically backward. Now, we are looked at as the “red headed stepchild.” Ask a Georgia resident over the age of 70 what they thought of the southern economy 50 years ago? I bet you would get a pretty negative comment. The Midwest is experiencing the same economic transition the agrarian South experienced 60 years ago. Unfortunately, we are seeing the effects of this transition. This economic transition also means Midwestern cities like Cleveland have to change their approach. This is not an easy task. Essentially, NEO has to reinvent itself economically. Yes, Ohio can do better. But the idea cities were oblivious to what was going on is a little harsh. Hindsight is always 20/20. Could we have predicted the emergence of China, India, and Mexico as producer of cheap products? Is it fair to blame Ralph Perk or Carl Stokes for not understanding the importance of diversifying the Cleveland economy when the U.S. was the number one producer in the world? Obviously, Ohio missed the boat, but most of the problems we see in these state could not have been as easily avoided as most people think. I think we should take some solace in the fact that Ohio still has some advantages. I also think a positive approach is one of the many steps to changing Ohio’s outdated economy.
July 17, 200816 yr Boreal, perhaps he isn't increasing spending in aggregate. But looking at the speech I see: - A $1.57 billion stimulus plan (sounds like spending to me) - An with education he says he "increased funding and access" Where did the offsetting cuts come from, incidentally? Regarding regulations, I see: - "That’s why we passed an energy bill that will protect jobs by ensuring the availability of reliable electric service while preventing the kind of devastating overnight increases in electricity prices – increases of more than 70 percent – that some states have endured." (sounds like regulation to me) - "And the new law requires expanded use of advanced energy technology" (sounds like regulation to me) Beyond the speech, we know there have been new regulations on, for example, strip clubs and payday loan stores. That's not to say all regulation is bad. The previous administration gutted local mortgage regulation, to the detriment of the state. I'd certainly rate Strickland as an improvement.
July 17, 200816 yr sir2gees, I agree with a lot of what you say. However, the Midwest has known that the global challenge was here for quite some time. It has been 15-20 years since Japan and Mexico hit the Midwest manufacturing base hard, and there was little change in approach. Contrast the Strickland speech with this column from the Detroit Free Press http://detnews.com/apps/pbcs.dll/article?AID=/20080717/OPINION01/807170322/1008 You don't have to agree with everything that guy writes to at least get that he is serious. Perhaps one should look at the south and why they were able to be so successful. Any chance of Strickland getting behind a right to work law, for example?
July 17, 200816 yr He made some very strong points about the positives in Ohio already. However, I do agree that if that's ALL we hear, then we (and Strickland) are kidding ourselves. I agree, and the thing is, all we usually hear is the exact opposite. That's why, once in a while (and it only happens once in a while,) it's good to be reminded of the positives that we have to build off of. If we don't, then we have the current attitude of "things are totally in the toilet here, they're never going to get better, so I should just pack up and move to Phoenix/Charlotte/wherever."
July 18, 200816 yr aren - I agree. Ohio and other Midwestern state have dropped the ball. We should look to South to see what worked and what has made them successful, but we need to be careful. Southern economies may be growing now, but there is something these economies are missing (no economic model is perfect). In the short term, Southern economies are booming, but just as our economy was booming 60 years ago, things can dramatically shift. Rather than just copying their approach, we should find our own comparative advantages. For example, Southern states used cheap labor and "right to work" laws as one of their economic tools. This was the opposite of how Midwestern states looked at business forty years ago. Southern states knew cheap labor would undercut the importance of unions, and would give them a huge advantage over unionized northern states. I have this feeling we all look to south with envy. A lot of our family and friends have moved to the south, but like any thing else in the world, southern economic success will eventually falter. Leaders will become shortsighted and arrogant. World economic trends will change. We are starting to see it already. Earlier this year, Bill Richardson had the audacity to think he could just pump water from the Great Lakes. He even hinted that southwestern states had right to Great Lakes water. This attitude is shortsighted and arrogant. Look at the Atlanta metro area. I have family members who drive fifty miles each day to work. If gas hits $7 dollars in the near future, how is that area going to cope? These problems are no different than Ohio politicians ignoring world economic trends, or dismissing the rise of Japan or Mexico twenty years ago. We can definitely learn from our southern counterparts, but we also need to be ahead the next curve. In a way, the southern economies of today are really no different than our economy of fifty years ago. I agree, our politicians need to wake up, but I also believe Midwestern states will be back in the game in the near future. The last decade all we have heard is how backwards the Ohio economy has become. Sometimes it's good to hear some positive news.
July 18, 200816 yr sir2gees, I agree 100% with what you said. Comparative advantage is music to my ears. So often cities and states try to adopt some one-size-fits-all, cookbook approach, when I argue most places need to look at where they are best positioned to compete. Commodity strategies aren't going to cut it. Incidentally, here's a link to one of those articles Strickland referenced http://www.thenews.com.pk/daily_detail.asp?id=104177 It's truly shocking to know that 10% of Ohio is on food stamps. People are hurting out there and they are angry. People who played by the rules as they new them found their world turned upside down by forced they could not understand. Unfortunately, they are largely also not willing to listen to any hard truths. I fear we are in for some major social unrest in this country if things don't change course.
July 23, 200816 yr Cleveland got a few decent comments in AP http://news.yahoo.com/s/ap/20080723/ap_on_bi_ge/fed_economy By JEANNINE AVERSA, AP Economics Writer 55 minutes ago WASHINGTON - The country slogged through slower economic growth and rising prices during the summer, packing a double whammy to people and businesses alike. The Fed's new snapshot of business conditions, released Wednesday, also underscored the challenges confronting Federal Reserve Chairman Ben Bernanke and his colleagues as they try to get the economy back on track. For now, many economists predict the Fed will probably leave a key interest rate alone when it meets next on Aug. 5 — given all the economic crosscurrents. Boosting rates to fend off inflation would hurt the fragile economy and the already crippled housing market. On the other hand, the Fed isn't inclined to lower rates because that would aggravate inflation. Growth and inflation barometers turned worse in the summer, according to the Fed report. Some worry that the country may be headed for a bout of stagflation, that toxic combination of stagnant growth and stubborn inflation last seen in the 1970s. Bernanke has said, however, that he doesn't believe the economy will suffer from stagflation. Information from the Fed's 12 regional banks around the country suggested that "the pace of economic activity slowed somewhat since the last report" issued in June, the Fed report said. Consumer spending — the economy's lifeblood — was reported as "sluggish or slowing" in nearly all the 12 Fed regions, although the government's tax rebate checks spurred sales for some items, especially electronics. Sales at many other stores, particularly for housing-related goods, were typically characterized as "weak or falling," however. Looking ahead, "the outlook for retail activity was also generally downbeat," the Fed report said. Sales expectations were described as "grim" among retailers in the Dallas Fed region and "subdued" in the Atlanta region. Auto sales, meanwhile, were characterized as "almost uniformly weak" across all Fed regions. Sales were especially poor for gas-guzzling SUVs, trucks and some minivans. On the manufacturing front, activity declined in many Fed regions. Production of housing-related goods, such as construction equipment, wood products, home furnishings and heating and cooling systems were particularly hard hit. On the positive side, though, overseas demand for U.S. exports remained "generally high." The drooping value of the U.S. dollar, which makes U.S.-made goods and services cheaper and more attractive to foreign buyers, has helped to boost export growth. That export growth has been a key force keeping the economy afloat. The Dallas region noted strong overseas sales of high-tech products. The Fed regions of Cleveland, Richmond, Chicago and Kansas City all reported continued high demand for exports. Meanwhile, food manufacturers in the Fed's San Francisco region said they are continuing to operate at, or near, full tilt because of persistently high demand. Turning to inflation, all Fed regions described "overall price pressures as elevated or increasing," the Fed report said. Businesses continued to be hit by rising prices for fuel, metals, food and chemicals, among other things. Many Fed regions said manufacturers planned to raise prices to customers as a way of coping with the higher production costs. Some worried about a drop in customer demand and overall sales volume because of price hikes. Some companies in the Philadelphia Fed region indicated that sluggish demand has made it difficult to raise prices. Meanwhile, some businesses in the Atlanta region were hesitant to pass along their higher costs as price increases because of cutbacks in discretionary spending by consumers. Retail prices went up in several Fed regions. In the Kansas City region, for instance, companies reported higher prices at hotels, restaurant and resorts. Chicago retailers reported raising prices charged to consumers in response to higher wholesale prices. By contrast, the Fed regions of New York and Cleveland reported relatively stable retail prices. One major retail chain in New York said that while costs under existing contracts were not up substantially, "some escalation in prices was expected within the next year," the Fed report said. The government last week reported that consumer prices in June rose at the second-fastest pace in a quarter century. Wholesale prices went up sharply, too. In a dose of good news, oil prices retreated Wednesday. They are now hovering above $127.44 a barrel. Oil prices marched to a new high above $147 a barrel less than two weeks ago, but have been ebbing in recent sessions. At the gas pump, prices dipped. A gallon of regular dropped more than a penny to an average of $4.042 nationwide, according to auto club AAA, the Oil Price Information Service and Wright Express. On the jobs front, most Fed regions said employment conditions were about the same or slightly weaker. Employers have cut jobs for six straight months as they try to keep work forces lean amid the economic slowdown. Housing, credit and financial problems all have weighed on growth. The unemployment rate, at 5.5 percent in June, is expected to climb in the months ahead. Wage pressures, meanwhile, were described as "generally modest." Economists look to wages for clues about inflation. Businesses in the Fed regions of Cleveland, Atlanta, Chicago and Kansas City reported very little upward wage pressures, except for very skilled workers and those in the energy field. But the Boston and Dallas regions said more workers were requesting higher wages to supplement cost of living increases. Bernanke has said he doesn't see a repeat of the 1970s-style situation where workers demanded — and got — higher wages to keep up with ever-rising prices. But Charles Plosser, president of the Federal Reserve Bank of Philadelphia, has warned that the Fed shouldn't wait for signs of something like that to emerge before taking corrective action. Plosser, an inflation hawk, has warned that the Fed might need to start to raise rates sooner rather than later to thwart inflation — even if the economy stays fragile. The Fed's survey is based on information supplied by the its 12 regional banks. The information was collected before July 14.
July 30, 200816 yr More regulation. http://www.dispatch.com/live/content/local_news/stories/2008/07/30/SICK.ART_ART_07-30-08_B5_86ASQDI.html?sid=101
July 30, 200816 yr More regulation. http://www.dispatch.com/live/content/local_news/stories/2008/07/30/SICK.ART_ART_07-30-08_B5_86ASQDI.html?sid=101 What does this have to do with Cleveland?
July 30, 200816 yr More regulation. http://www.dispatch.com/live/content/local_news/stories/2008/07/30/SICK.ART_ART_07-30-08_B5_86ASQDI.html?sid=101 What does this have to do with Cleveland? Or being a world-class economic engine?
July 30, 200816 yr It goes back to Strickland's speech at the Cleveland economic club up, where it is pretty clear he thinks more regulation is the answer to Ohio's economy. Some people disagreed when I said that, so I figured I'd cite another example.
July 30, 200816 yr It goes back to Strickland's speech at the Cleveland economic club up, where it is pretty clear he thinks more regulation is the answer to Ohio's economy. Some people disagreed when I said that, so I figured I'd cite another example. - "And the new law requires expanded use of advanced energy technology" (sounds like regulation to me) Oh, yeah. Well I was going to let that drop, but since you are still excited about it, that energy bill that Strickland spoke about earlier this month was the 2008 followup to the 1999 electricity Deregulation bill. Get it? Deregulation--it allows power consumers to buy power in a deregulated free market. If you want to know more, go to www.cleveland.com and read the articles by John Funk.
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