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Showing posts from December, 2013

Detroit: A Wake-Up Call for Business Retention

It's easy to criticize Detroit's economic decline. Let's take the high road and think about solutions and possible prevention.

Whenever people and businesses leave, municipal tax revenues decline and quality of place degrades. As a result, taxes increase and services are cut causing even more people and businesses to leave. As tax revenues decline, the tax burden is spread across fewer taxpayers causing unit costs to increase driving even more people and businesses away. It is a vicious cycle.

People, businesses, cities, and growth are so intertwined and dependent on one another that a decline in any one particular area subsequently affects the others.

A possible solution is business retention. Business retention is making sure existing businesses stay, expand, and continue to grow. Businesses and their employees contribute significant tax revenues. It is widely known that 65 to 80% of new jobs are created through the expansion of existing businesses.

Surveys, roundtable…

Economic Development is Economics

There is no separation from time or resources. Time is limited. We have to decide how and where we spend it. Resources- the means to satisfy ends- are scarce. 
Herein lies the core of economics: solving for mankind's unlimited wants with  limited resources.
Economists study the disposal of scarce means. Economics is about studying human behavior as a relationship between ends and scarce means which have alternative uses.
Given nothing stays the same, economists examine how changes may affect choice and future decisions.
Economic development takes a look at the distribution of wealth within a specific geography and seeks solutions for improvement. 
Economic developers examine all facets of issues and opportunities affecting growth in a given area. The field spans a variety of topics including infrastructure development, business retention, business expansion, workforce development, and tourism.
The unlimited want in economic development is communities' desire to grow stronger a…

Early December Growth

So far December has shown strong numbers for the State of Georgia and the national economies. New data shows signs of investor confidence, more job opportunities, and quality economic development.

For the State of Georgia:
Royston: Pharma Tech Industries announced its expanding its manufacturing capabilities, creating 50 full-time jobs and investing $8.5 million.Cartersville: Toyo Tire will expand adding 450 jobs within the next two years and another 200 by 2017. The tire manufacturer will invest $371 million in the expansion.Dalton and Rome: Fortune 500 company Mohawk Industries will convert two manufacturing facilities in Dalton and Rome creating 420 new jobs and investing around $85 million over the next two years.For the U.S.: Unemployment fell to 7%- a five-year low and the lowest since November 2008. The US economy saw 203,000 jobs added in November. Significantly, more high-quality jobs were created than previously seen: professional and business services (35,000 new jobs), transp…