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Showing posts with the label economic development

Two Benefits of Hosting Comic-Con in San Diego

Over a hundred and thirty thousand people attended this year’s Comic-Con convention in their enthusiasm to submerge themselves in the spirit of “geekhood”. Comic enthusiast contributed $203 million and booked over 378,000 rooms in the area over the past three years ( 1 ). This means big windfalls for hotels, restaurants and other businesses in the area.  There are two benefits from Comic-Con that helped to steer a course for San Diego. The first is the immediate benefits to local businesses and the second is the long-tail of marketing of San Diego to the world. Businesses may see a short burst of revenue but also may find their environment improving over the long-run.  Sometimes people need an excuse to see the beauty of San Diego. Conventions such as Comic-Con give young people a reason to visit San Diego who might have otherwise have optioned for another place. Some of those people will be impressed by the area and may come back for a vacation or another time when a larg

Advanced Industries Power Exports

Advanced industries are those that develop innovative solutions to market problems. When matched with labor skills, education, business clusters and progressive policies spur exports and employment at a levels unseen in other industries. A report by the Brookings Institution finds that advanced industries only account for 9% of employment but accounts for 60% of exports and 17% of Gross Domestic Product. The development of products requires a level of innovation where research, skill, investment, and industry come together to create an exportable product. Many of the county's strongest industries are clustered in metro areas which make it possible to rejuvenate these areas while still strengthening the nation. We can see this example in places like Detroit and San Jose California. As to date national economic policy has not been focused on developing hubs and clusters that are better able to meet market needs and push the nation even further ahead of the competition. There have

A Few Thoughts on the Free 2-Year College Degree Proposal

The White House recently announced an idea to provide free tuition for 2-year college degrees in an effort to educated the American workforce. Potentially 9 million students could save approximately $3,800 annually in student loan payments. Cost would be somewhere around $60 billion dollars and would need to be approved through the congressional budget. A well intentioned policy with a few thoughts about the benefits and detractors of the idea. It is true that Americans need to retool their workforce to ensure that they stay competitive on the international market. This generally means that they will need to learn new skills to match the marketplace in a way that will improve upon the growth and expansion of competitive industries. Growth requires a workforce that can actually do the work without burdening companies with excessive training costs. There is a problem with understanding which type of skills students will be learning. Those students that will be working in labor positi

Treaties that Foster Economic Growth and American Values

Treaties determine what type of international commercial activity is likely within a country. The design of these treaties can determine the access to raw materials, investment opportunities, and export opportunities. Countries like the U.S. can develop stronger treaties that are more advantageous to an export market while ensuring that American values are important to partnering countries. Developing countries are regularly looking to attract investment. Investment money is used to fuel their economies, fill government coffers, and create a connection to a larger world. Because of America’s strong economic position it has the capacity to create more advantageous treaties (Chikere Azubuike, 2013). The value of these investments puts the U.S. in a better bargaining position than the other country(s). This position of power is not necessarily a bad thing. When done well it can help the U.S. fuel its economic hubs for greater development. Such hubs rely on natural resources a

As World's Largest Economy Does China Gain New Advantages? Should We be Worried?

For the first time in decades the U.S. is no longer the largest economy in the world. Despite industry experts throwing up red flags for years the inevitable happened. According to new data by the IMF the total output of goods and services by China is $17.6 trillion versus $17.4 trillion for the U.S. This leaves experts scratching their heads and wondering how this could happen and what it means for the future. Should we be worried? Resource Advantages : With China accounting for 16.5% of the world economy in terms of real Purchasing Power Parity (PPP) and the U.S. at 16.3% of PPP it means that China has a little more leverage in their treaties and purchasing behavior. They will be able to obtain and receive resources at a slightly lower rate than the U.S. giving them an economic advantage. The advantage they have in obtaining cheaper resources for their manufacturing can be sufficient when systematically applied across multiple industries year-after-year. A few cents

U.S. Consumer Confidence Rises with Economic Growth

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The economies of the world’s nations are on a slow stroll while America has quickened its pace to a leading role as one of the only bright Northern lights for others to follow. Improvement is so significant that GNP has been revised upward from 3.5% to 3.9% ( As cited in CNN Money ). Other nations are increasingly concerned about lower inflation and the potential for deflation. The U.S. is doing so well it may start to raise interest rates in alignment with growth. Americans are becoming increasingly positive about their future prospects within the economy. According to a recent gallop poll consumer confidence rose to -7 which is the highest it has been in 17 months ( Gallop, 2014 ).   The poll is a combination of how people view the economy. According to the poll 24% said the economy is excellent while 30% said it is poor leaving the total balance at -7.  The U.S. economy is also moving forward with some of that growth coming from lower energy and oil costs. Morgan Stan