|
Economic &
Business Issues
North
Carolina bankers predict modest economic growth
The
U.S. economy is now in recovery after experiencing its mildest
recession in history, according to an analysis by the N.C.
Bankers Association. The bankers organization made these
predictions for the near term:
The economy should grow at a rate of about 3.75-4.5 percent
for the rest of the year. The rate of increase is less
than that in previous recoveries. The unemployment rate should
slowly decline for the remainder of the year as the
manufacturing sector recovers. Interest rates will increase
slowly for the rest of the year and the Fed will start raising
short-term rates in the third quarter.
The state economy will
continue to struggle. The state unemployment rate will
continue above the national average and the rate of economic
growth will lag the national rate. Expect the state economy to
grow at a rate of 2-2.5 percent for the rest of the year.
State spending, which
more than doubled in the last ten years, continues to increase
faster than state revenues. Obviously, our elected
officials have to deal with that situation in order to solve
the problem. Additional income tax increases are not an option
so other revenue sources must be found or the rate of increase
in spending must be cut. The problem will only get worse until
some hard decisions are made.
Governors
urge Bush to help ailing textile industry
Gov.
Mike Easley met with Georgia Gov. Roy Barnes and South
Carolina Gov. Jim Hodges last month to discuss ways to bolster
the ailing textile industry. The summit at Gaston College in
Gastonia was attended by about 300 business and political
leaders. The governors called for enforcement of the North
American Free Trade Agreement to limit "dumping" of
textiles by Asian nations, for action to reduce the value of
the dollar compared with foreign currencies, and for federal
loan guarantees to help textile companies survive their
current financial squeeze.
"We must all work together to get the textile industry
going and growing again," Easley said. "The
industry, workers, and states will do our part but at the
federal level, the new 'Textile Working Group' needs to become
quickly the 'Textile Results Group.' Agencies across the
federal government must move aggressively to assist textile
manufacturers and workers. Every day the issue is discussed
rather than acted upon, factories close and jobs are
lost."
At the conclusion of the summit, the three Democratic
governors signed a letter to President Bush asking him to take
immediate action to help the textile industry by:
 Directing the
International Trade Commission to combat dumping of textiles
on U.S. markets and to address the failure of trading partners
to open their markets to U.S. exports of textile and apparel
products.
Providing the
U.S. Customs Service with the additional staff and resources
necessary to crack down on illegal smuggling and other customs
fraud.
Directing the
U.S. Trade Representative to consider whether trading partners
have already achieved competitive advantage through currency
devaluation in determining whether or not to allow further
adjustments or tariff reductions for textiles in future trade
negotiations.
Helping
unemployed textile workers get the full two years of training
and the associates degree that they need to secure a job at a
sustainable wage, extend the Trade Adjustment Assistance
program from 18 months to 24 months and expand the program to
include health care coverage for those without coverage.
Providing
funding to Southeastern states to support market research to
determine what type of training should be offered to displaced
textile workers.
Providing tax
incentives and support for infrastructure projects in order to
facilitate local economic development and expansion for our
communities affected by the loss of a textile-manufacturing
base.
Helping spur the
innovation and collaboration that are key to the success of
the U.S. textile industry in the global economy of the 21st
century, expand federal support for the National Textile
Center.
In addition to the three governors, panelists at the textiles
summit included Guilford Mills President and CEO Chuck Hayes,
who is this year’s president of the American Textile
Manufacturers Institute; U.S. Trade Representative Special
Textile Negotiator; and three members of the state’s
congressional delebation -- Cong. Sue W. Myrick (R- 9th),
Robin Hayes (R- 8th) and Cass Ballenger (R-10th).
Return to Page One
|
