A New Administration, the Financial Crisis, and the Regional Economy (Part I)

1
A New Administration, the Financial Crisis, and
the Regional Economy (Part I)

• Session 1 of the PI Seminar Series

2
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

3
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

4
Goals of Future Sessions

• Session 2 Exports and market share
• Session 3 Migration and the impacts of
  demographic change
• Session 4 Taxes and government spending

• Session 5 Investments in infrastructure
• Session 6 Energy policy
• Session 7 Conclusion and summation of previous 6
  sessions

5
The Financial Crisis

• Initial cause Bursting of housing bubble?
• Compounding problems Expectations and
  self-fulfilling outcomes
• Different locations Unique challenges

6
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

• 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

7

• Model Demonstration

8
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.