Category Archives: Business News

Bailout Supporters and Detractors

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No matter what side of yesterday’s great bailout debate you were on, you’d probably like to know how Indiana’s Congressmen voted, so here goes:

Voted Against:

Dan Burton (R)
Mike Pence (R)
Steve Buyer (R)
Pete Visclosky (D)
Andre Carson (D)
Baron Hill (D)

Voted For:

Joe Donnelly (D)
Brad Ellsworth (D)
Mark Souder (R)

(Hat tip to Hoosier Access.)

Ultimately, the $700 billion bailout was defeated 228-205. Indiana Congressman Mike Pence’s quote in a Bloomberg article was also highlighted in today’s Drudge Report:

"The American People rejected this bill and now Congress did likewise," Pence said.

Congress Appears to Vote “Nay” on Bailout

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You have a nice weekend? Yeah, me too. Weather was nice, football was watched, fun was had. Oh, one small thing I should also mention: our entire economic structure is swirling in a giant (bleep)storm.

So in "Other than that Mrs. Lincoln, how was the play?" news, we’d like to discuss the bailout. (And as I write this, it appears the current proposal is on the verge of defeat in the House.)

According to John Berlau of the Competitive Enterprise Institute, defeat today would be ideal, as the proposed $700 billion could actually have had a net negative impact on the economy. He writes in The American Spectator:

"The government has to do something to keep markets from falling and the economy from getting worse." How many times have you heard that mantra this past week from President Bush, Treasury Secretary Hank Paulson, Democrat leaders, the news media, and even some ostensibly conservative periodicals?

But what if the bailout, as originally proposed and in its latest incarnation, would spend $700 billion of taxpayers’ money and actually make the economy worse? Believe it or not, there is good evidence this may happen. The inflationary prospects of the bailout price tag may lead to spikes in oil and crop prices that could hit ordinary Americans in their cars and on their kitchen tables. And government purchases of financial assets could ironically further constrain credit through causing write-downs on even the balance sheets of financial firms not participating in the bailout by worsening the effects of mark-to-market accounting rules.

But not everyone is so bearish on the matter. Obviously, Treasurer Paulson and many members of Congress didn’t think it was such an economic downer.  

Also of note, Ball State economist Michael Hicks is now on record saying the ultimate proposal could cost much less — $100 billion over five or six years.

Just $100 billion? Oh, see, and here I thought this was going to impact me financially.

Lilly’s Future: Not a Bad Economic Club Start

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If you weren’t paying attention to John Lechleiter’s Economic Club of Indiana speech on Wednesday about the future of Eli Lilly and Company, you appear to have been one of the few.

More than 800 people attended the season-opening event at the Indiana Convention Center. Media coverage was far and wide, especially when it was anticipated that Lechleiter would deliver a hard-hitting commentary on the company’s future direction. He delivered.

Industry innovation, the company’s staggering stock price and the negative pharmaceutical image are the "800-pound gorillas" awaiting action. Lilly, like it has during its long history, has a plan and is implementing it. Will it mean fewer jobs in the future? Likely. Will the company remain a local, state, national and international powerhouse? We hope so.

Michael Snyder, principal of The MEK Group, writes an informative weekly column for MidwestBusiness.com. Check out his summary for a good review of what Lechleiter had to say.

Next up for the Economic Club: William Kristol on October 27, eight days before the election. Sounds like another great one.

Conexus Round Tables Bring Economic Issues to Fore

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Conexus Indiana is hosting a series of round tables throughout the state this fall to address some of the key issues facing Indiana. The goal of each discussion will be to examine and brainstorm with professional experts in order to learn how Indiana can become a logistical stronghold in the various industries that impact different parts of the state.

"It’s a chance to provide insight on the infrastructure needs, policy challenges and workforce gaps that must be tackled to put Indiana on the map as a global logistics hub," says spokesman Luke LaBeau.

Here is the upcoming schedule, with each round table discussing issues that impact the corresponding area of the state. For more information, call the listed contact:

Sept. 25 – Portage, 4-6 p.m. EST
Northwest Indiana Forum Auditorium
Contact: Karen Lauerman – (219) 763-6303 ext. 181

Oct. 2 – Fort Wayne, 3-5 p.m. EST
Summit Club
Contact: Kathleen Randolph – (260) 459-1400 ext. 4502

Oct. 10 – Muncie, 9-11 a.m. EST
Ball State Alumni Center
Contact: Roy Bud – (765) 254-1420

Oct. 14 – Evansville, 11 a.m. – 1 p.m. EST
Ivy Tech
Contact: Greg Wathen – (812) 423-2020

Nov. 14 – Plainfield, 9-11 a.m. EST
Brightpoint
Contact: Joyce Zwierlein – (317) 707-2382

Nov. 19 – Notre Dame, 10 a.m. – 12 p.m. EST
Center for Continuing Education
Contact: Robert Bernhard – (574) 631-1862

Smart Start Helps Produce Healthy Results

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Many factors come into play in determining one’s health status. But if the subject is limited to individuals doing all they can to take care of themselves, a key ingredient is that person’s education level.

An example from a Governing.com column: Florida Medicaid recipients are eligible for financial credits for completing tasks as simple as keeping a doctor’s appointment or getting a flu shot. The credits that were redeemed, however, paled in comparison to the first-year administrative costs of the program. The trade-off appears simple. See the doctor and earn credits for many common health care pharmacy items. But the connection is not registering with the intended recipients.

The author writes:

Genes and bad luck aside, the higher up the educational ladder, the healthier and longer life a person is likely to live. High school dropouts, the statistics show, are not likely to live to a ripe old age. Just getting a high school degree decreases the probability of being in poor health by 35 percent; a bachelor’s degree decreases the chances by 55 percent. "Education," explained Robert Kaestner of the University of Illinois at Chicago, "makes it easier for people to obtain and process information about the causes and consequences of health."

What does it all mean? Early childhood education (with family status and home environment a major part of the mix) is critical, not just for eventual workforce abilities and compensation levels — but long-term health prospects. No, we’re not placing this task at the hands of teachers. It’s parents and other caregivers who play that most important role. Our job is to help them in a responsible way, and it’s their duty to do everything they can to benefit their loved ones.

EcoDriving Brings Less Impact to Environment, Wallet

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Are you looking to save money at the pump and reduce carbon emissions? Who isn’t. Gasoline prices and going green have to be two of the most popular topics for 2008.

EcoDriving USA combines both. Sponsored by the Alliance of Automobile Manufacturers, with early support from governors Arnold Schwarzenegger of California and Bill Ritter of Colorado, the web site and interactive tools offer advice for saving money and reducing environmental impact.

The tips — proper tire inflation, as little stop-and-go driving as possible, etc. — will help boost fuel mileage by as much as 15%, according to the web site. If everyone followed EcoDriving practices, the estimated reducation in CO2 emissions would equal 450 billion miles traveled each year.

We’ve seen the stories with similar pieces of advice. The web site, however, includes a video guide, "EcoCalculator" for determining individual and state impacts, as well as additional information. Check it out. The gas and green subjects are certain to remain top of mind, especially when that credit card bill comes with the purchases at the pump.

Wall Street Woes and the Upcoming Indiana Session

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The financial world is in turmoil, the economy is fragile, and the future is unknown. These national issues will come home to Indiana as the legislators work on the next biennium budget for the coming session. In a recent article, Purdue economist and professor, Larry DeBoer, asked the question: "Is Indiana’s Budget Ready for Recession?"            

While Wall Street shockwaves ripple through the economy, Indiana budget-makers are in a particularly precarious spot. House Enrolled Act 1001-2008 puts a host of new obligations (demands and challenges) on the state. Under the reform legislation, the state assumes the full expense of school general fund operating levies and must pay for county welfare programs for the first time in this budget. These are big dollar expenses that have steadily increased by significant amounts. The plan was for the additional one cent sales tax increase to cover these newly assumed obligations. But sales tax revenues are of course closely tied to the state of the economy. If it goes south, so does the ability of the state to pay the bills or increase education funding.

Indeed, Dr. DeBoer points out how quickly state reserve balances can dwindle. Projections already have us $140 million short going into 2009. Fortunately, those projections also show us recovering, anticipating a $1.3 billion balance by the end of fiscal year 2009. However, that recovery is entirely dependent on a stable economy. In perspective, the state has pulled itself back into a position to better deal with tough times if the economy does get uglier. This makes last resorts, like expanding taxes, less likely. But to echo the concluding sentiments of Prof. DeBoer’s article, let’s just hope the budget-makers simply don’t have to face a recession.

Indiana: A State Divided on the Soda Question … I mean, Coke Question

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So you walk into a restaurant with your cousins from California and wish to order a soft drink. You order a "pop" and your relatives have the audacity to order a "soda." Oh, those Left Coasters. Always trying to one-up us with their constant shenanigans. "Whatever," you say to yourself, "they’re only second cousins, anyway."

Strangemaps took a look at the Coke/Pop/Soda divide in the United States. What I found most interesting was the division right here in Indiana. It seems that while those in central Indiana and along the Kentucky border prefer "Coke," the rest of the state is pretty devout "pop" country.

What’s the explanation for this? How did this happen? Should we come to consensus? How about a ballot initiative? Someone, please think of the children!

Well, let me be the first to make a plea to the state: Can we please reach some middle ground here? We’re all Hoosiers. We’re all Hoosiers!

Hat tip to 13th Floor.

Steinberger Sets the Safety Standard, Governor Notices

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Steinberger Construction will begin its fourth annual Super Safety Training Day on Sept. 19. The 63-year-old Logansport company began the event, which is attended by the company’s employees and contract workers, as a way to promote safety on the jobsite.

"It gets bigger and bigger every year," says Steinberger’s Loryn Martin of the event, which now includes approximately 120 employees and instructors.

During training, all Steinberger employees and contract workers attend up to 12 classes focusing on safety areas like fall protection, excavation and trenching, fire safety, electrical safety, and hazard recognition. Local officials also play a large role as the town’s fire department and the Indiana State Police, among others, take part in demonstrations.

Because of this commitment to safety, Steinberger has won the Governor’s Workplace Safety Award for general contractors two years in a row. The award is presented to businesses in Indiana who have reduced workplace accidents and illnesses and make workplace safety a top priority.

The Indiana Chamber would like to offer kudos to Steinberger Construction and says thanks for setting such a high bar in the state.

Noblesville: A Campus Like No Other

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Individual economic development facilities are typically measured in square feet. Larger projects are touted by their acreage. What’s taking place in Noblesville is called a Corporate Campus. At an astounding 3,600-plus acres, that’s one big campus.

The industrial, commercial and housing developments taking place on the east side of the Hamilton County seat are one reason Noblesville is being honored as the 2008 Community of the Year by the Indiana Chamber. The other award winners — Business Leader of the Year and Government Leader of the Year — will be announced at the November 6 Annual Awards Dinner (featuring Newt Gingrich).

There is plenty of bang behind the size of the Corporate Campus. Stores in the Hamilton Town Centre are setting sales records. Businesses, old and new, are moving into a variety of facilities and/or building new operations. And there is room for plenty more. We look forward to telling the story in video at the awards dinner and in our BizVoice magazine.

For now, read today’s press release and check out the city’s economic development web site.