Wall Street sees big gains, unemployment remains stubbornly high

Tuesday, March 19th, 2013

Editor’s Note: This article, authored by Marty Carpenteroriginally appeared on KSL.com

Wall Street has been on a hot streak for the past few weeks, but those positive numbers are still in stark contrast to the stubbornly high national unemployment rate and sluggish economic growth.

The Dow Jones Industrial was up over 14,500 as trading began Monday, part of a steady increase dating back to Feb. 25 when trading opened at just over 13,784. The 10-day run was the longest winning streak for the U.S. stock market in 17 years.

Compare that number the 7.9 percent national unemployment rate and an anemic growth rate of just 1.6 percent. To give some level of comparison, Utah’s 3.2 percent economic growth is nearly twice the national rate with an unemployment rate now down to 5.4 percent.

So why isn’t a boom on Wall Street translating into better times on Main Street?

Darin Mellott, a senior analyst at CBRE and a member of the Utah Economic Council, joined KSL Today Monday morning and he says there are a variety of elements that can influence the stock market.

“Generally speaking, businesses are doing well,” says Mellott. “They’ve done a good job of keeping their costs low so any improvement in the economy can make a real difference when it comes to profitability.”

Because the businesses that make up the Dow Jones Industrial average do business outside the U.S., they are growing even when the U.S. economy isn’t keeping pace.

“When it comes to the Dow, we have to remember these are multinational corporations,” says Mellott. “They’re doing business in places where the economy is doing much better than it is here in the United States, although things are improving here. That’s a key ingredient to get into a better pace of job creation.”

Public policy plays an important role in overall economic performance. The high level of uncertainty coming from budget battles in the nation’s capital affects the way businesses invest their earnings. The Wall Street economy is booming, the Main Street economy is primed for growth but Washington is not doing its part.

Congress and the administration make the rules businesses have to operate by and when businesses are unable to reasonably predict the rules (tax policy, regulation, etc.) they hold onto the money rather than investing in new ideas, buying equipment, expanding and hiring.

“Policy is going to have a big say in economic outcomes and performance,” says Mellott. “There’s no doubt we’re waiting to see the impact of the sequester, the higher taxes that were implemented earlier this year, there are certainly some open questions and some risk to where the Dow is at right now.”

Practical steps to cleaner air

Tuesday, March 12th, 2013

Editor’s note: this post was originally published as an op-ed in the Deseret News, Sunday, March 10, 2013. You can find the original post here.  It is co-authored by Jonathan Johnson, acting CEO at Overstock.com and chair of the Salt Lake Chamber Clean Air Task Force, and Jeff Edwards, president and CEO of the Economic Development Corporation of Utah.

Already in 2013, Utah has logged more than two-dozen red air days. With extended inversions trapping pollutants in our valley, Utahns have declared it is time to do something.

In addition to the adverse impact on public health, poor air quality endangers Utah’s federal highway funding, increases the risk of greater regulatory burdens and impairs economic development and corporate recruitment efforts.

Overall emissions in Salt Lake City are not that different from other Western cities our size, but because of our unique geography and meteorology, pollutants can’t escape into the atmosphere as they do elsewhere.  We all play a part in polluting the air to some extent and enhancing our air quality will require a collective effort—including some smart public policy.

We must encourage the behaviors that will protect the unsurpassed natural beauty of our state. We should drive less. We should drive cleaner. And businesses should continue to make clean air a priority. Clean air makes good business sense and the business community is determined to be a significant part of the solution.

Overstock.com incentivizes employees to participate in a carpool program, providing as much as $80 per month and preferred parking spaces to carpoolers. It also encourages carpools by listing carpoolers on the company intranet by geographical location so employees can find groups close to where they live. Overstock.com is just one of many great examples of businesses making Utah’s air quality a top priority.

Public policy should also continue to play an important role in preserving and enhancing our air quality. Over the past two decades Utah has increased capacity on our interstate highways, greatly reducing congestion and keeping cars from idling on our freeways. Later this year, UTA will complete a multi-year effort to add 70 miles of rail over a seven-year period. These investments in our mobility infrastructure play a significant role in our clean air efforts.

There is still more we can do. We support Senate Bill 275, sponsored by Senate Majority Whip Stuart Adams. This bill facilitates fleet conversions to cleaner-burning compressed natural gas (CNG) throughout the state, improves and increases CNG refueling infrastructure and provides critical maintenance facilities.

Today there are 2,757 school buses throughout the state: 2,659 run on diesel and 37 run on gasoline.  Only 69 run on CNG. Considering each diesel school bus is the equivalent of 36 cars on the road, a determined effort to convert every bus—school buses and public transit buses—as well as heavy vehicles in the state fleet to CNG is a practical and pragmatic step that will greatly benefit our air quality.

Simple math makes this even more attractive. Today diesel fuel is $3.89 per gallon while CNG is $1.49 per gallon equivalent. Bus fleets that run on CNG will not only pollute less, they’ll cost less. Making CNG more readily available to the public also makes it sensible and financially rewarding for more of us to drive CNG-fueled vehicles.

Increasing the availability of CNG fueling stations is a win-win-win for Utah. Our state has an abundant supply of natural gas. Using more of it to fuel our vehicles and commerce reduces our dependence on foreign oil, improves our air quality and makes our state an even more attractive location for businesses and top talent looking for a place to do business.

# # #

Jonathan Johnson is the chair of the Salt Lake Chamber Clean Air Task Force and acting CEO of Overstock.com.

 

 


Jeff Edwards is the CEO of the Economic Development Corporation of Utah.

Chamber adds tools to help business speak out on issues

Tuesday, February 26th, 2013

With just 12 days remaining in the legislative session there is still a lot of work to do. We want to make sure you are familiar with some of the great new tools we have developed to help you monitor the bills that impact your business and the Utah economy.

The Salt Lake Chamber now offers a one-stop, all-inclusive website where you can track legislation as it progresses, learn more about the business community’s positions and take action by sharing your support or concerns with your elected officials. You can find it all at www.slchamber.com/vote.

This website provides a quick and easy way for you to take action and let your legislator know how these bills will impact your business and our economy. At slchamber.com/vote you will find a list of the Chamber’s top priority bills (those we oppose and support), as well as a complete bill watch list. To learn more about each bill, one click can take you to the full bill text and its current status.

For a tour of the website, watch the brief video above.

We hope you take some time to check out these tools and help us as we fulfill our mission to stand as the voice of business, support our members’ success and champion community prosperity.

 

Chamber speaks out on approach to improving air quality

Thursday, February 14th, 2013

During a winter riddled with severe inversions marked by a high number of red air days, air quality has been an issue in the spotlight. Today, Ryan Evans, the Chamber’s vice president of business and community relations, spoke during a news conference with Salt Lake City Mayor Ralph Becker. He expressed the business community’s position on clean air.

Clean air is important to the Utah Business Community and to our state economy.  Poor air quality impacts the health of our employees, hinders corporate recruitment efforts, and places federal highway funding at risk.  Having poor air also impacts Utah’s tourism industry, one of our largest, and potentially subjects Utah businesses to increased regulatory burdens.  It is important we protect our reputation as being the best state in the nation for business.

The Salt Lake Chamber applauds the mayors here today and others who have implemented measures to improve air quality within their communities.  We also applaud the efforts of Governor Herbert, who has worked very hard to engage in this conversation and initiate steps to improve our air quality.  We applaud the Legislature, as well, for their willingness to look at air quality as an economic development issue.  And, I would also like to applaud the many business leaders throughout our community who have addressed this issue head-on. Their active role in improving our air quality has resulted in significant reductions in emissions. Businesses are committed to doing even more to improve the quality of the air we breathe.

Clean air is a shared public resource. All across our state, we must work together to improve our air quality. Individual communities and the state as a whole play an important role and we need to work together to address this issue. We all share the responsibility to change our own behavior to improve air quality.  We are making progress. Overall, our air is cleaner now than it has been in decades, but the spikes during inversions must be addressed.

Improving our air quality will require a combination of many efforts- both easy and difficult.  Unfortunately, there is no single answer to this issue.  Today’s announcement includes a list of potential remedies.  While we do not have consensus from business leaders about the right remedies and policy steps, we want to be part of the conversation, and we will continue to support and provide leadership on this important issue.

UPDATE:

Please see our public policy pages for clean air, where the Chamber’s principles and policies are outlined. Here is a list of the suggestions from a variety of stakeholders brought up by the mayors at the press conference:

1. Provide additional transit funding by implementing an increase in the local-option sales tax; or by increasing the gas tax to provide more road funds and requiring a proportion of the general fund money available to go to transit; or amending the state constitution so additional gas tax revenues can go directly to transit.

2. Repeal state law prohibiting Utah from setting air quality standards that are higher than federal regulations. We have unique local geographic conditions that require locally tailored approaches.

3. Extend tax credits for clean fuel and electric vehicles, and support funding for natural gas infrastructure (like fueling locations).

4. Change state vehicle registration fee schedule to a mileage-based system.

5. Devote additional financial resources to conduct widespread educational campaigns on causes of our poor air quality, the health effects and solutions to improve it.

Here is a link to the Salt Lake Tribune for broader coverage of the event: http://www.sltrib.com/sltrib/politics/55833397-90/lake-salt-mayors-pollution.html.csp

Immigration reform is right for the U.S. economy

Monday, February 4th, 2013

Editor’s note: This post was originally published as an op-ed in the Salt Lake Tribune, Sunday, February 3, 2013

Federal immigration reform dominated the headlines this past week as some of Washington’s biggest names stepped forward with encouraging proposals. There is increasing understanding that we can, and growing consensus that we must, modernize our immigration system to continue to attract the best and brightest to our shores and ensure we have enough workers to sustain our economy and remain competitive.

The Utah Compact, signed in Nov. 2010, established our state as an immigration leader. Our recognition that immigration reforms should consider the impacts on law enforcement, the economy and families must continue to guide the discussion. The first principle of the Compact states that immigration is a federal issue. Utah business leaders are encouraged to see leadership coming from Congress and the White House.

Last week, Sen. Orrin Hatch joined with Sens. Marco Rubio, R-Fla., Chris Coons, D-Del., and Amy Klobuchar, D-Minn., to propose a significant increase in the number of visas for high skilled workers. The bill would boost our economy by granting legal status to foreign-born students who earn advanced degrees in science, technology, engineering or math (STEM) fields. This common sense reform will improve our economy by attracting and retaining the best talent, and secure a return on the investment we have already made in educating foreign students.

On Monday, a bipartisan group of eight senators introduced a comprehensive reform effort. Their proposal called for a workable roadmap to lawful status for people of good will who are already here and a reform of our legal immigration system to strengthen the American economy and American families. The Group of Eight wants to create an effective employment verification system that will prevent identity theft and end the hiring of future unauthorized workers as we improve the process for admitting future workers to serve our nation’s workforce needs. These admirable goals should serve as the framework for more detailed legislation.

Sen. Mike Lee, who was originally part of this group of leaders, issued a statement saying he “remains greatly supportive of what the group aims to accomplish” and he “will continue to work with (his) colleagues to solve many of the challenges this important issue presents.” We believe Sen. Lee can continue to be a productive voice in the immigration discussion and we encourage him and the other members of our federal delegation to unite in the common purpose and work as a team to reform America’s broken immigration system.

An optimized immigration system would greatly strengthen the U.S. economy. More than 40 percent of Fortune 500 companies were founded by immigrants or their children. High skilled immigrants strengthen our research work, develop new products and launch new industries. Immigrants are also essential in hourly jobs that support industries including tourism, hospitality and agriculture.

No one benefits from our outdated and broken immigration system. Bringing undocumented immigrants out of the shadows will enhance our recovering economy and position us for continued growth. Fixing our broken immigration system will attract and retain the most educated and hardest working talent from around the world for decades to come.

Wheelwright was also a guest on KSL’s Sunday Edition this past weekend where he discussed the issue with Richard Piatt. Click here to watch.

 


 

Lane Beattie is the president and CEO of the Salt Lake Chamber, Utah’s largest business association representing over half the state’s workforce. 

 

 

 

 

Tim Wheelwright is the chair of the Salt Lake Chamber Immigration Task Force and a partner at Kuck Immigration Partners.

 

2013 Public Policy Guide outlines business community’s priorities

Monday, January 14th, 2013

(L to R) Wesley Smith, general counsel, Salt Lake Chamber; Lane Beattie, president and CEO, Salt Lake Chamber; Becky Lockhart, Speaker of the Utah House of Representatives; Clark Ivory, CEO, Ivory Homes

With the 2013 General Legislative Session just two weeks away, the Salt Lake Chamber presented the business community’s legislative agenda this morning to legislative leadership.

You can read the official news release here. 

The 2013 Public Policy Guide outlines the business community’s position on issues including economic development, education, transportation, health reform, energy, clean air, immigration, Downtown Rising and international business.

Though it is a Salt Lake Chamber publication, the 2013 Public Policy Guide represents the broad-based support of chambers of commerce across the state as well as the other important business associations. As Utah’s largest and longest-serving statewide business association, we stand as the voice of business in our state. Our policies are well thought out and designed to strengthen the Utah economy today and over the long term.

Utah Schools Must Produce More Job -and College- Ready Graduates

Friday, February 12th, 2010

The recent financial crisis has made policy wonks argue about short- and long-term solutions to the challenges we face.  Philosophical debates about our independent banking system, stock market regulation, and federalism itself lace the halls of Congress, monopolize the water cooler chatter at our workplaces and overwhelm the blogosphere.  However, there is one long-term solution to our economic situation with which very few informed individuals disagree. 

Investing in a better educated and more skilled workforce is the most viable long-term strategy for helping America and Utah emerge from this crisis in a stronger and more competitive global economic position than we entered it.

Consensus about better educating our children and producing better prepared graduates is not difficult to achieve; how to create that better educated citizenry is where the debate begins.  We recommend the Utah Legislature take a comprehensive reform approach to improving our public schools.  This will require strategic thought and planning, and likely several years.  For this legislative session, however, we recommend a simple first few integrated steps that signal a longer-term commitment to improving Utah’s schools.

First, we must define the problem that we need to solve.  America’s public education system is not in trouble because it lacks innovative ideas – it is in trouble because those ideas often act as solutions in search of problems.  Initiatives that work in Japan or Massachusetts won’t necessarily work everywhere.  Prior to implementing interventions, some key questions need to be answered, such as:

  • What are leading indicators that effectively predict dropping out of school?
  • In what ways are students most ill-prepared for high school and college?
  • What skills are required to specialize in careers that will be in the highest demand in the coming years?

Second, we must set milestones at key intervals throughout the student lifecycle.  These milestones will be informed by the answers to the key questions above.  If we continue to determine the success of our school system solely by the standards of high school completion and college readiness, we will continue to be effective coroners – diagnosing problems after it is too late.  Setting milestones, or leading indicators, which might include 1st grade readiness, reading proficiency at the 3rd grade, and completion of Algebra 1 and Biology 1 by the 8th grade (all found to be “gatekeeper” indicators in various states and districts), will enable policymakers, thought-leaders, and practitioners to address problems of Utah’s education system before it is too late.

Additionally, we must match our high school graduation requirements with the entrance requirements of our state universities.   Through milestones we can ensure better prepared high school entrants, which will pave the way for stronger graduation requirements.  Currently, only 54 percent of Utah high school graduates attend college, and a full 75 percent of those students require some degree of remediation during their first year in college.   Most problematic is that only 27 percent of our young people (ages 25 – 34 years old) have obtained their bachelor’s degree, ranking Utah 31st in the country for the number of college graduates in this age group.  This figure is most alarming when put in context that our older age groups (ages 45 – 64 years old) rank 12th in the U.S. for the total number of college graduates.   At a time when higher education is most needed for professional success, Utah is declining.  We must graduate better prepared students, and we can do that by strengthening our high school graduation requirements.  This would not pigeonhole all students into going to college.  On the contrary, it would increase graduates’ choices by equipping all graduates with the credentials to pursue higher education if they choose to do so.

Finally, we must better integrate the high school and higher education experience.  Integrated career pathways should be developed to take a student from the 11th grade through the first two years of college.  The process will not only offer direction and goals for our students, but will provide them with the certification and specialized training to obtain the high-demand, high-value careers that will propel our state’s economy. An associate’s degree will be awarded and the credits will fully articulate to Utah universities, enabling the graduate with options – a specialized, high-paying job, the ability to continue his/her higher education, or both. Additionally, the institutions of higher education must collect information surrounding student achievement in their first two semesters and share that data with the high schools from which they originate; thus communicating with their education partners the areas in which student knowledge needs to most improve.

We urge the Utah State Legislature to consider comprehensive education reform in the state of Utah.   For starters, the Utah Legislature can send a clear signal to our state and the country by taking the first few steps delineated above.  Deriving key indicators of future success and creating clear interim milestones throughout students’ K-8 experience will help better prepare students for high school.  Strengthening graduation requirements for students will equip more students to attend college at higher rates of preparedness. And better integrating higher education and higher school will create a more seamless and effective transition.

From these foundational steps, the Legislature can build a series of programs and initiatives that will be better informed and applied to a more prepared student body. 

Contributed by Randy Shumway, president of the Cicero Group and Dr. Trent Kaufman Executive Vice President of the Cicero Group

Education key to Utah’s economic future

Thursday, February 4th, 2010

Education is the key to a qualified workforce and a top priority of the Salt Lake Chamber. In a challenging year for the state budget, the business community calls upon the State Legislature to fully fund both public and higher education–holding them harmless as cuts are administered to other programs and funding for enrollment growth.

The Chamber’s focus on education will be a multi-year effort. While the concerns this year are primarily budgetary, moving forward we seek to:

1. Invest in the most important business input: human capital.

2. Create long-term prosperity

3. Act by taking decisive action to ensure all students receive a quality education.

(for more information on the Chamber’s education goals, see the 2010 Public Policy Guide pages 6-8)

This is a video we debuted last night at the Chamber’s annual Legislative Reception.

Chamber debuts 2010 Public Policy Guide

Wednesday, January 20th, 2010

The Salt Lake Chamber debuted the 2010 Public Policy Guide today, first presenting it to Speaker of the House David Clark and Senate President Michael Waddoups during a CEO Roundtable and later rolling out the business community’s policy priorities for the upcoming legislative session.

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