During the Olympics we freely show unabashed pride in our native sons and daughters. The Rochester region cheers Jenn Suhr’s triumph over her longtime Russian rival in the pole vault and Abby Wambach’s soccer gold against Japan. Yes, some of the U.S. Olympians are transplants, immigrants to our nation. But most were born here.
While a burst of nativism is excusable during the Olympics, anti-immigration sentiment doesn’t serve our economy well. Asked by local businessman Dutch Summers to explore why Canada’s Golden Horseshoe—anchored by Toronto—has prospered and grown while Upstate New York has languished, we concluded that immigration policy is a powerful contributing factor. Read more »
I love summer and I love sports. 2012 has already produced many sports highlights with I’ll Have Another winning 2/3 of horse racing’s Triple Crown, Tiger Woods’ renewed success on the golf tour, Roger Federer’s and Serena Williams’ record breaking tennis wins at Wimbledon, the mid-summer classic, baseball’s All-Star game and King James winning his first NBA title. And now it’s the Tour de France and, soon, the summer Olympic Games.
Big Sports Event = Big Economic Impact?
Sports spectaculars are often lauded for their economic impact. Does the reality match the claims? Victor Matheson, an economics professor at College of the Holy Cross in Massachusetts has analyzed the economic impact of “mega sporting events” like the Super Bowl, the Olympics, the All Star Game, and World Series. He finds many examples of major sporting events not living up to their pre-event hype. For instance, Major League Baseball claims economic impact on cities that host the All-Star game in the neighborhood of $75 million in direct benefits. Matheson’s ex post research suggests that for the cities that hosted All-Star games between 1973–1997, average employment actually declined by a half percent. Organizers of the 1996 summer Olympics in Atlanta suggested upwards of 77,000 new jobs would be generated. Matheson estimates that as few as 3,500 were actually created. Read more »
The French have voted with their hearts and picked Francois Hollande as President. And who can blame them for wanting to be more like Italy and less like Germany? More Roman Holiday and less The Spy Who Came In from the Cold?
We should be grateful to the French. We need exemplars—countries whose policies we embrace and countries whose polices we avoid. France seems determined to set a bad example, if they expect Hollande to follow through on his promises. This is a nation that hasn’t run a budget surplus in 35 years, where labor costs have been rising in the face of blistering global competition, and where the public sector controls more than half of the economy. Hollande promises to hire more public sectors workers, raise the marginal tax rate to 75%, and reverse Nicholas Sarkozy’s feeble encroachment on the entitlement mindset of the French worker. Read more »
I’ve been reading Hope and Despair in the American City: Why There Are No Bad Schools in Raleigh. And, like many others, I’ve been thinking a lot lately about our urban schools in Rochester and elsewhere and how we “fix” them.
In areas around New York and nationally, there seems to be precious little hope for resurrecting our urban schools and kids —and far too much despair. Dedicated people, much smarter and more creative than I, have been writing about and wrestling with this dilemma for years. Despite years of reform, study and advocacy, the problems remain, as most of the available solutions are constrained by limited resources available only within city boundaries—when community-wide solutions and resources are called for. Read more »
In Triumph of the City, Harvard economist Ed Glaeser attempts to explain why some cities—think New York or London or Bangalore—have prospered, even as the cost of communication has plummeted. The “death of distance” suggests the death of cities. Why do some defy the prognosis?
Glaeser reminds us that cities are “density, proximity, closeness. . . . [T]heir success depends on the demand for physical closeness.” He asserts that electronic communication is not a substitute for face-to-face contact (a proposition anyone who has endured a few conference calls will accept). Even sophisticated “virtual meeting” suites fall short. (Maybe it looks like Nathan is in the same room, but you can’t go out for a beer after the meeting.) Read more »
Despite issues weighing down the US economy –fiscal stress in Europe, continued high unemployment, and gridlock over federal fiscal policy – the Rochester, NY economy is a bit of a success story. As summarized in a recent Wall Street Journal article, Rochester, “ticks many of the standard Rust Belt boxes” yet has held relatively steady through the recession.
As a participant in the Rochester Downtown Rotary’s annual economic forecast luncheon, I was pleasantly surprised by the generally upbeat expectations of my fellow panelists. Moderated by Sandy Parker, head of the Rochester Business Alliance, it included Steve Babbitt, chairman of the board of the Greater Rochester Association of Realtors; Brad McAreavy, president of the Rochester Auto Dealers’ Association; and Clayton Millard, first vice president of wealth management at Merrill Lynch.
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“What (or whom) should we occupy?” has become shorthand for a bit of communal soul searching. We know that our economy fails to measure up. For some the pain is very personal, “Why can’t I find a job?” or “Must I work so hard for so little?” or “Why can’t employers see what I see in my daughter or my son?” Or one step removed, “What do we do about single moms stuck in a continuing cycle of poverty?”
We want answers. We blame globalization or automation or the school system. Or we blame government or regulation or some shadowy conspiracy. And we blame each other. The Occupy Wall Street movement blames the greed of the rich and powerful and their agents in government. The Tea Party movement blames the power of Big Labor—and their agents in government.
What we want changed depends on who we think is guilty. The Tea Party wants less government. The Occupy movement wants more. Read more »
Pessimism about the economy comes easily to most of us. We’ve been told that it takes fewer muscles to smile than to frown. Nonsense. Pessimism is our natural state.
And when the Rochester economy outperforms the state consistently over a three-year period, we suspect either mischief or incompetence: Someone at the Department of Labor made a mistake that will soon be discovered. Yet while the rest of the state has been shedding jobs since September 2008, we’ve pretty much held our own here in Rochester. Read more »
Governor Cuomo set November 14 as the deadline for the state’s ten regions to submit economic development strategies. Led by Wegmans CEO Danny Wegman and University of Rochester President Joel Seligman, many in our community are working furiously to articulate plans, goals and measurable objectives.
While we hope to be one of the winning regions—earning a promised $40 million in state support—the process itself has already been valuable. In my 20 years here, I cannot recall a time when leaders of business and government from the Finger Lakes’ nine counties have gathered to talk about what makes our economy successful and what might make it better. The process would have been even more valuable had it been less of a fire drill—a February deadline would have been better, although still ambitious—but we can be proud of the diligent efforts of the Council members and participants in eleven workgroups. The plans they have developed are a testimony to the vitality of particular economic clusters and the many vital economic institutions in the region.
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In its release of 2010 estimates for Monroe County, the Census Bureau confirmed what we perceive: We’re all worse off.
As year-to-year variation is less reliable, I compare the 2010 American Community Survey estimates to the 2000 Census—the “long form.”
- Median household income fell about 20% over the decade. Adjusted for inflation, the 2009 figure reported in the 2010 report—about $45,000—is 78% of the nearly $58,000 figure from 1999.
- Per capita income didn’t decline as much—about 9% to about $27,000 (from an inflation-adjusted $29,000).
- The increased incidence of poverty is also troubling:
- Family poverty rate from 8.2% to 11.1%
- Poverty rate for families with children under 18 rose from 13.1% to 18.6%
- Similarly, persons in poverty rose from 11.2% to 15.4% but children in poverty rose even more, from 15.5% to 22.2%
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