I recently gave a presentation to the Hellertown-Lower Saucon Chamber of Commerce. For the presentation, I gathered some information about the current economy. It's depressing, but everyone should know the shape of our economy. Here is where we are at right now:
- Consumer confidence is the lowest it has been since the measure first started in 1985.
- The NYSE is at its lowest point in five years, while the S&P 500 is at it’s lowest in eleven years.
- Consumer spending has decreased and the planned increase in consumer spending is at it’s lowest since 2002. This isn't the case for everyone though...Walmart grew about 10% in the 3rd quarter of 2008.
- Home sales in the Northeast are down 10% from last year. In a rapidly growing area like the Lehigh Valley, this bound to hurt the local economy. While this trend won't damage cities as much (since they are already built-out), it is still bound to hurt to some extent, as urban economies depend, in part, on revenues generated from out-of-town shoppers and employees.
- Local governments are feeling the strain, with at least eight local municipalities facing likely tax hikes (in one case as high as 62%). Pennsylvania may have to raise taxes next year as well.
1 comment:
Mike,
Governments need to cut spending, not raise taxes.
With a detailed knowledge of both Allentown and East Penn's budgets, there is ample opportunity to cut spending.
However, too many feel that ANY cuts in government spending would cause the total collapse of civilization.
Post a Comment