1. Wisconsin Economic Summit | 10.05.10 Money makes the world...

2. Wisconsin Economic Summit | 10.05.10 Money makes the world...

3. ■ “Big picture”: Trends and strategic position ■ Employment: Job trends ■ Paying Employees: avg. wages ■ Employers: Creating new firms? Overview

4. Economy Revenues Budgets ? “It is the economy, stupid.” - Campaign ‘92

5. Per Capita Personal Inc.: Wis. +/- US > US < US Economist’s view

6. Wis. % of US GDP Marketer’s view

7. How did we manage in the 90s? % Women working

8. Mfg. Jobs 6/07-6/10 WI-14.8%-75K US-16.1-2,246K Tot. Nonfarm 6/07-6/10 WI- 6.0%- 173K US- 5.3-7,236K Closer look... jobs

9. Avg. Earnings/Worker & GDP/Worker ( WI % US) Productivity: GDP/Worker Avg. Earnings/Job... wages and productivity

10. Real wages growing, but slower WI US

11. Where are our jobs? 1990-2009

12. Where aren’t our jobs? 1990-2009 U.S.Wis. E/I

13. Pct. Change in No’s of Private Establishments Third Quarter of Ea. Yr. Shown (BLS) > v Closer look... employers

14. Are we creating new firms?

15. New firms... where? < > 1994-2009

16. GDP % chg GDP pc In sum... subpar, subperforming

17. Who can help... state? ■ GAAP deficits, bond ratings ■ Weak growth dividend, structural “deficit” ■ Recent tax changes and “success” psychology ■ Risk aversion: job preservation, “job” focus

18. ... universities? ■ Research, yes; but slow, probabilistic process ■ More college grads, yes; but, nimbleness? outmigration due to job lack, low wages ■... and job crowding and wage suppression?

19. ■ “... US government debt held by the public has grown rapidly... it is now higher than it has ever been except during... World War II.” ■ “... deficits will cause debt to rise to unsupportable levels.”  Federal debt = 100% of GDP: 2020 - 2040 ▪ Crowding out of private savings/investment ▪ Rising interest costs forcing program cuts ▪ Higher marginal tax rates “would discourage work and saving and further reduce output”... Feds? (CBO, 7.27.10)

20. Takeaway? New firms create new jobs. Soul-searching questions for Wisconsin.

21. The Wisconsin Taxpayers Alliance Our eighth decade of teaching and informing the press and public about how their government works, taxes, and spends. Thank you for making our nonpartisan research and citizen education possible. www.wistax.org