Wednesday, July 20, 2005

Toledo's Economic Momentum

First, some good news:

GM is calling back employees who were hit by layoffs several months ago. WTOL News 11 reports that 500 Toledo-area employees will be back to work by August 1st. UAW Local 14 President Oscar Bunch even predicts a 10% increase in the number of transmissions they'll be assembling.

Thursday afternoon's Toledo City Council Finance Committee will include a report about a continuing, significant increase in city income tax reciepts versus last year. So far, small business has been the real driver in the economic boost - and no Administration in the midwest has recieved a national SBA award for its small business initiatives except Mayor Ford's Toledo. With GM's decision to put people back to work, our income tax reciepts will continue to blossom, and Toledo retail and restaurant business can expect a nice bump, as well.

Second, sobering analysis by UT's Urban Affairs Center, in a pdf report on Business Tax Revenue in the Toledo Area. Not only has Toledo's business income tax reciepts gone down the past five years, Oregon, Maumee and Sylvania have seen decreases as well. It underscores the importance of the public and private sector working together across geographic and political boundries in a cluster approach to development.

19 Comments:

Blogger Lisa Renee said...

Johnson's Control is also doubling their employee numbers, while they are not in Toledo, they do have employees that live in Toledo.

It's nice to see some good news on the economic front.

11:27 PM  
Anonymous marshall said...

Hopefully more good economic news will come. I particularly like the fact that mostof the growth is coming from small businesses. We've got to start facing the facts that focusing solely on a manufacturing base isn't going to cut it anymore. With NAFTA and the other trade agreements there's just too much worldwide competition for the US to dominate like it once did.

The UT stude was very sobering. It proves that the problem with Toledo's economy isn't the national economy....it's our fault and we have to change it. While the economy nationwide is growing at a phenomenal rate and unemployment is low, Toledo is lagging behind significantly. I think this should bolster the groups pushing for regionalization and increased focus on attracting biotech, alternative energies, and other emerging industries. Only after we do that will we see our economy become strong again.

1:44 AM  
Anonymous Anonymous said...

This post is hilarious.

It seems that whenever there is some bad economic news, Frank blames President Bush and the Republicans. Whenever there is good economic news, it solely due to the efforts Jack Ford and the Democrats.

This is why people hate politicians.

How about at least remotely recognizing that President Bush's policies may have played some role in turning around the local economy and small businesses. Or is Frank too partisan to even do that?

2:23 PM  
Anonymous Anonymous said...

I'm not really political, but I invite you all to the following link for Ernest Berry for Toledo City Council: http://www.ernestberry.com/biography.htm

Ernie has an incredible story to tell: blind, disabled, and accomplished at the age of 21. I've met Ernie at a festival the other week and was amazed.

Ernie is a conservative and advocates for less government and taxes. He has overcome more than most of us and believes that he has succeded in spite of government.

With all the talk of the A's and B's and career politicians (sorry, Frank), this is the one person we should all support.

3:09 PM  
Anonymous Anonymous said...

I agree with the 'hilarious' post. Frank - tell us, When Ford was at the DNC and said the Superior Bumper went out of business because of outsourcing jobs overseas, then the former head of Superior came out and said that wasnt true - that they fazed out because there just are no more chrome bumpers any more (Duh), Was Jack lying, or did he not know the root cause of a business in his town folding?

5:44 PM  
Blogger Lisa Renee said...

President Bush's policies may have played some role in turning around the local economy and small businesses...I'm not even a democrat and I find that one hilarious...

:-)

I'd also say it's really easy to sign up for a name so you don't have to hide behind being anonymous....

10:43 PM  
Anonymous marshall said...

Lisa,
That's not all that hilarious. Bush's policies have allowed small and large businesses to expand. Like it or not his tax cuts for the "wealthy" (as Dems say during elections) has spurred business growth, employment, and investment. We're seeing economic expansion umatched since the early to mid 80s, an all-time high housing market, very low unemployment, and personal incomes are rising at an incredible rate. You'll find that most economists say the tax cuts have helped most all Americans become richer, and historical data that suggests the same (great expansion has followed Kennedy's, Reagan's, and Bush's tax cuts).

12:55 AM  
Anonymous marshall said...

By the way, I completely agree with the assessment on Ernest Berry! He may not have experience in office, but I think that's actually an asset!

Frank,
I was wondering what all you've heard about the proposed 14 story building in Edison park. Is this a serious proposal or is it too soon to tell for sure?

12:59 AM  
Anonymous Anonymous said...

It's only a serious proposal if you (and all of the elected officials), the Ford administration, and Pizutti guys take this seriously. Now I for one--would love for a new high-rise to be built in Toledo especially near the new bridge and the Marina District. If the developers wants to invest--bring 'em on in.

10:09 AM  
Blogger Lisa Renee said...

Marshall, I don't believe the President has control over the economy. He can have a minor effect such as the tax cuts, (which he did not do alone) but over all we are a consumer driven society. If the consumers have less to spend, the economy does not grow. Extend that to the mayoral race, can a Mayor or city council influence growth? Yes, they can also stiffle growth. The local level does have more influence on economy than the President.

For many I know in this area they have not had additional funds to spend, they have had less funds. Part of this is due to increased fuel and energy costs. Our own personal income has not increased but our costs for daily living expenses has. Any gain in the tax cut has been diminished by these increases.

So I find it funny to give the President credit for economic success when any economist will tell you that the President is not a main contributing factor.

12:47 PM  
Blogger Lisa Renee said...

Marshall, if you'd like to read a short piece on this:

Here

12:52 PM  
Anonymous marshall said...

lisa,
I couldn't agree more with you in most aspects of your post. The local business environment and government provides us with job growth (that's the reason certain places grow faster than others), but the underlying foundation is still our federal leaders. I don't claim that Bush caused the good economy, but I do claim his policies allowed for it. I have no doubt in my mind that if the two rounds of tax cuts Bush spearheaded hadn't happened, we'd be in a worse economic state. Would we be in recession? Not at all, but I do think the growth would be much smaller.

While Toledo's incomes may not have risen much (they have risen some b/c the city is reporting more tax revenue) the nation's as a whole have. So I place the blame squarely on Toledo's local leaders, because the rest of the country (in general) has had great income growth. Gas and energy prices would have risen with whoever was in office, so without the tax cuts we would have brought less home and still paid more out in gas and utilities.

It's no secret that less regulation and lower taxes are good for business (for a perfect example look at Europe's high taxes and dismal economy), and any president who pushes for lower taxes will help the economy.

1:47 PM  
Anonymous marshall said...

lisa,
That was a really good article, by the way. I wouldn't go as far as they do and say presidents have absolutely no influence on the economy. That's especially true when both the Whitehouse and Congress are controlled by one party. In that instance a president can introduce de facto legislation to Congress. So during Carter's years, the first two of Clinton's, and all through GW Bush's terms the President has had a lot more power, and could effect economic policies more.

2:04 PM  
Blogger Lisa Renee said...

Marshall, thanks, one of my pet peeves is the myth that the President has some magical power over the economy. Both main parties do this and many people believe it because they've heard it so many times. Our local leaders do this as well, blaming or crediting a president when in reality that is just one small part of the overall puzzle that makes up our economic success or failure as a nation.

The article does go farther than some but is one of the better ones out there as far as a quick explanation/theory type.

I do agree with you that on a local level there is more ability to influence growth. I also agree with you on the political party versus President issue as the article also touches on.

5:32 PM  
Anonymous Anonymous said...

I'm with Ernest Berry. Frank, do you endorse him? If not, why not? I know you monitor all the responses and I'll take a non-response as a "yes."

5:39 PM  
Anonymous Anonymous said...

ERNSET BERRY -- BREAKING THE CHAINS OFF TOLEDO!!!!!

5:44 PM  
Anonymous Sepp said...

I'm wondering how the finance committee can present a report about an increase in income tax receipts when Toledo's population is shrinking? I doubt that Maumee has seen any decline in business taxes since they are seeing a boom in new businesses and housing sprouting like weeds in that area. I lived in Maumee about 15 years ago. The weed fields in the Salisbury/ Holland /Ford rd are now fully developed and thriving. Take a drive through there and see the beehive of commerce for yourself. One major factor that businesses are leaving Toledo and setting up shop in Maumee is CRIME. Another factor is that the atmosphere is business friendly (unless you're opening a strip club).
I'm wondering if the "red tape" that Mr Wilkowski was referring to had anything to do with prospective businesses being asked to pay members (sorry "make donations) of city council for zoning changes? Maybe that kind of activity would effect a decision to head for Maumee? Hmmmmmm.

11:18 AM  
Blogger Frank said...

Not prepared to endorse Berry - glad he's in the race, though. Proud to be running with the LucasCountyDemocrats.org slate of candidates.

4:01 PM  
Blogger Subcomandante Bob said...

Frank would no more support Ernest Berry than he would Newt Gingrich, since Ernest and Newt are roughly political equivalents.

Ernest is the son of Becky Berry, she of the "there's a homosexual agenda in Toledo Public Schools" fame.

Becky Berry has also been a gadfly protesting the sex education curriculum, while simultaneously being a strong opponent of abortion.

Lovely dilemma, that one...

11:47 PM  

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