Manufacturing job losses in the recovery: the District outperforms the nation
This article examines job growth in the district's key manufacturing industries and in the seven district states. The article shows that while thousands of manufacturing jobs have been lost since the recovery began, the decline in the district has been less than in the nation. The primary strength of the region's manufacturing sector has been the food processing industry.
Welfare finance reform: District states could face funding challenges
Welfare finance reform could have a substantial fiscal impact on the budgets of some states in the Tenth district, although the ability to cope with reform will vary from state to state. This article discusses some of the proposed changes in welfare funding and the effect they may have on the states in the Tenth District. Each state's ability to offset potential reductions in welfare funding will depend on their own budget resources and whether additional funds are provided to states with limited resources and higher administrative costs.
Continued strength at Tenth District banks
Commercial banks in Tenth District states continued to perform well in the first half of 1994. Profitability leveled off at a high level, asset quality improved, and loan growth accelerated. Based on these performance measures, banks in district states once again outperformed banks in the rest of the nation.
The Tenth District's brain drain: who left and what did it cost?
Most of the Tenth Federal Reserve District states experienced a brain drain, or an outmigration of highly educated people, during the last half of the 1980s. Fortunately, the recent tide of migration appears to have turned for some district states. Yet, it is still important for policymakers to understand the full impact of a brain drain on a state's economy. Highly educated people are prone to move, based on their region's economic performance relative to other parts of the country. Thus, current favorable migration trends in the district could easily be reversed.
Targets of state and local economic development policy
State and local policymakers typically have three targets for their economic development policies: outside businesses, existing businesses, and new start-up businesses. Attracting outside businesses especially large manufacturing plants has long been a popular economic development activity, but increasingly this approach has come under fire. As policymakers reexamine the effectiveness and appropriateness of economic development policy, an understanding of how resources are currently allocated among the three main targets is essential.
Mutual funds and annuities at Tenth District banks
Mutual funds are today's second-largest financial industry in the United States, second only to commercial banks. Since 1990, mutual fund assets have more than doubled to $2.3 trillion. Such rapid growth, coupled with the desire of banks to expand into new financial services, has prompted up to one-fourth of all U.S. commercial banks to begin selling mutual funds and annuities. Some banks have even begun to manage and provide investment advice to their own mutual fund companies. This article shows that many commercial banks in the Tenth District states are following the national trend, with ...
Small business lending at Tenth District banks
One of the most important roles commercial banks perform is to lend to small businesses. Such lending is vital to the regional economy because small businesses generally lack access to alternative sources of credit and because they account for a major share of job creation. Moreover, small business lending is crucial to the health of district banks because it is one of the few profitable activities in which banks continue to enjoy clear advantages over other financial institutions.
Regional economic update
The Tenth District economy continued to expand in the second quarter of 1997, but at a somewhat slower pace than early in the year. Manufacturing activity expanded modestly and the farm economy continued to improve. Energy posted further gains and construction activity rose seasonally. The unemployment rate dipped slightly while employment levels declined marginally.
Survey of Tenth District manufacturers
Manufacturing activity in the Kansas City Federal Reserve District expanded in July but at a slightly slower pace than earlier in the year, according to a quarterly survey of manufacturers across the district. The survey takes a snapshot of manufacturing the first month of each quarter by asking plant managers about a variety of manufacturing indicators (Table 1). By most measures, manufacturing showed a modest expansion during July. Inventories of raw materials and finished goods were generally unchanged at district factories. Prices received for finished goods held steady, while prices of ...
How important are small businesses in the Tenth District?
Small businesses were widely recognized in the 1980s as the driving force behind economic growth. One benchmark study estimated that small firms accounted for 80 percent of all new jobs in the nation in the late 1970s. Analysts predicted that small businesses would continue to provide most new jobs as the economy became more service-oriented and therefore dominated by firms that tended to be smaller in scale. ; The desire to promote small businesses as an engine of job growth was partly responsible for efforts in the mid-1980s to overhaul the tax system and deregulate business. Since then, ...