Slow economy, but private sector is where solution will be found
The numbers for New York's economy don't look good:
- Economic indicators have dropped 13 of the past 14 months
- Unemployment stands at 8 percent.
- Housing sales were down 21 percent last month.
And those are just the transitory, economic fluctuations that should be reasonably expected in a dynamic system.
New York, especially Western New York, suffers from longer-term economic trends that must be addressed whether we want to improve our standing in short-term fluctuations or build a strong economic foundation.
The New York State Association of Counties, which put out a press release prompting this post, jumps right to the conclusion that what is needed is more government, more stimulus, more taxpayer dollars.
Can the government really spend New York out of its current problems?
The government's power to spend money is mind boggling, but what really creates jobs and growth are private businesses making investments and taking risks.
Some of what is needed in New York is to clean up the mess in Albany, reduce the state regulatory burden and lower taxes.
But even with its faults, New York, especially WNY, has a lot going for it. Genesee, in particular, has access to inexpensive power, reliable rail and road transportation, a stable workforce, inexpensive housing, plenty of land and water, respected school systems and a great natural environment.
There's no reason jobs can't be created here.
But growth won't come from government programs. What WNY needs is a resurgence of entrepreneurship -- daring men and women who want to start businesses right here at home.
The biggest struggle WNY faces is how to convince business-minded people to take up the challenge of starting new companies. And again, I'm not sure a government program is the answer. People need to come to this conclusion on their own, but how to get the ball rolling ...
WNY was built by daring entrepreneurs, and only entrepreneurs will save it.
Full NYSAC press release after the jump:
“The Economy Watch continues to show that our state is suffering from severe economic decline. State and local leaders need to do everything we can to leverage funding from the federal stimulus plan to stem any further decline in our economy. We need to retain the jobs we have here in New York and attract new business and employment opportunities,” said NYSAC President Sarah Purdy, Yates County Administrator.
NYSAC’s Economy Watch is updated monthly and provides a range of data, including business cycle indicators, the consumer price index, job growth and layoff numbers, consumer and business confidence indicators, as well as local housing prices and sales activity.
Among the results presented in June’s Economy Watch include:
- The Index of Coincident Economic Indicators (ICEI), which has fallen for 13 of the past 14 months;
- Unemployment rates, which rose from 7.5% in April to 8.0% in May (before seasonal adjustment) despite increased seasonal hiring in many traditional tourist destination counties. A total of 29 counties exceed the State’s 8% unemployment rate;
- Housing sales declined by 21% for the month and have declined 40% since a year ago. Statewide sale prices have declined by 7.8% since a year ago and 11.8% since May of 2007;
- Consumer confidence increased in May by 5.5 points although New York consumer confidence indicators continued to be below the rest of the nation; and
- The Empire State Manufacturing Survey, which indicates that general business conditions for the state’s manufacturers continue to slip with indicators declining an additional 5 points in the last month.
The complete NYSAC Economy Watch, county level information where available, and a full description of each of the indicators and what they mean, can be obtained by visiting the NYSAC website.
The New York Stat Association of Counties is a bipartisan municipal association serving all 62 counties of New York State including the City of New York. Organized in 1925, NYSAC’s mission is to represent, educate and advocate for member counties and the thousands of elected and appointed county officials who serve the public.