Transcript A New Administration, the Financial Crisis, and the

A New Administration, the
Financial Crisis, and the Regional
Economy (Part I)
Session 1 of the PI+ Seminar Series
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Purpose of Series
• Introduction to PI+
• Training in its use
• Its application to topics of current economic
importance
• Facilitation of discussion among attendees
and REMI staff
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Goal of this Session
• Introduction to the current recession
• Discussion of proposed solutions
• Laying the groundwork for detailed topical
discussions in future sessions
• Brief introduction to PI+
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Goals of Future Sessions
• Session 2: Exports and
market share
• Session 5: Investments
in infrastructure
• Session 3: Migration
and the impacts of
demographic change
• Session 6: Energy
policy
• Session 4: Taxes and
government spending
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• Session 7: Conclusion
and summation of
previous 6 sessions
The Financial Crisis
• Initial cause: Bursting of housing bubble?
• Compounding problems: Expectations and
self-fulfilling outcomes
• Different locations = Unique challenges
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The Stimulus Package
• Energy
– Renewable energy tax
credits and cuts
– “Smart Electricity Grid”
to reduce waste
• Health Care
– Medicaid aid to states
– Health insurance for
unemployed
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• Infrastructure
– Public transportation
and construction
projects
– Rail and mass transit
projects
• Education
– State fiscal relief to
prevent cuts in aid
– Grants to local school
districts
[Model Demonstration]
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Take-Aways
• The crisis and recovery will effect every
region, albeit at times differently.
• Dynamic analysis and smart modeling can
capture changes in regional
competitiveness.
• An economic disruption of this magnitude
may offer a chance to redirect and refocus
regional competitive advantage.
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