The 2nd Annual The Compass Conference
by February 25, 2011 4:19 pm 66 views
photos by Joel Rafkin
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“Troubling” and “gut check” descriptors were used frequently during Friday’s The Compass Conference to explain economic and political directions.
The conference is a joint program of The City Wire, the economic development division of the Fort Smith Regional Chamber of Commerce, and presenting sponsor Benefit Bank.
Around 150 attended the 2nd Annual The Compass Conference, held Friday (Feb. 25) at the Phoenix Expo Center, and heard economist Jeff Collins say national and local economic trends “are moderately getting better.” They also heard U.S. Rep. Steve Womack, R-Rogers, say that the “painful” $100 billion in proposed cuts to the federal budget is “just the beginning” of needed spending cuts.
ECONOMIC DIRECTIONS
Collins, the economist for The City Wire’s Compass Report, said joblessness in the Fort Smith region continues to be a weight on area sales tax collections — a clear indication of a consumer uncertain about future economic prospects.
Part of the unemployment problem is that businesses are making investments in the equipment and software that increases productivity without increasing employees.
“They’re making investments in productivity because they don’t want to hire all these people back … when we come out of the recession in a real way,” Collins explained.
Collins also said he is concerned that just as macroeconomic conditions were improving, the consumer is now going to get “hammered” by higher fuel and energy prices.
As to future economic growth, Collins praised the gathered business and civic leaders for their efforts to improve quality of place in the region. However, he said regional leaders must be focused on recruiting the creative people who are “the innovators who develop new products,” new business services and new ideas.
POLITICAL DIRECTIONS
Womack said several “gut check” votes are coming in the U.S. Congress, including a fight over a budget bill that could shut down the government. Also, sometime in April or May, Congress will be forced to vote on raising the federal debt ceiling above $14.3 trillion.
Noting that “Job 1” among most Republicans in the now Republican-controlled House of Representatives is to cut spending, Womack told the crowd that cutting about $666 billion in non-defense discretionary spending and cutting $692 billion in defense-related discretionary spending would be enough to balance the budget.
“Even if you zeroed those out, you wouldn’t get there (balanced budget),” Womack said.
His point was that entitlement programs — including the big three, Medicare, Medicaid, Social Security — will have to be cut. He said addressing entitlements will represent the toughest political challenge.
“The first step is admitting that entitlements are killing us,” Womack explained.
Overall, Womack said his goal in representing Arkansas’ 3rd Congressional is to cut spending, reduce the reach of the federal government and “empower entrepreneurs.”
