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Volume 1, Issue 11 - April 28th - May 11th, 2004
The Economy of EC, and in The Debate
by Chase Buzzel
Senior / Political Science

In late February John Kerry became the frontrunner of the Democratic candidates and the primaries were all but over. Within the political arena, Kerry versus President George W. Bush was embraced and discussion began. As the summer months abruptly approach the political campaigning will intensify, as issues are hotly debated.

Inevitably the economy will be addressed by both Bush and Kerry, but in vastly different manners. Regardless of each competitor's economic paradigm, the economy has received much attention due to its perplexing behavior. The economy boasts numbers of soaring corporate profits and rapid growth in output, but the unemployment rate comfortably rests above five percent. Since early 2001, the U.S. has lost 2 million jobs, but recovered 308,000 in March.

The national picture is somewhat reflective of what is occurring here in the Chippewa Valley. Since early 2001, Wisconsin has lost 77,400 jobs. And with the recent announcement of four local companies leaving town, concern is warranted.

Celestica, Rockwell Automation, Intek Plastics, and American Girl for one reason or another have decided to leave town, resulting in the loss of more than 500 jobs. Not only is there an economic effect from the loss, an emotional and psychological tear can be felt in the fabric of society. Giving to the Chippewa Valley Theater Guild, Eau Claire Chamber Orchestra and the Eau Claire Children's Museum among others, American Girl was a large contributor to the arts and culture of Eau Claire through fundraising and donations.

Although these losses seem daunting, through drawing on past occurrences optimism can be salvaged. The director of UW-Eau Claire Small Business Development Center, Kevin Jones, said, "I think the community will be able to handle these losses well. Eau Claire and Chippewa Falls have had to deal with some major plant closings in the past 10 to 15 years."

Jones gives an example of Uniroyal closing in 1992, which involved the loss of 1200 employees earning an average wage of $18.00 per hour. Compared to the current layoffs, that amounts to 500-600 jobs at a lower average wage.

"The community knows how to respond," Jones said, "and does so quickly and in a coordinated way."

Multiple devices will be used to ease the transition process. Last Friday, April 23rd, an employment exposition was held. Two companies that attended the expo announced prior to the event that they were adding jobs. TTM Technologies is adding 100 workers at its Chippewa circuit board factory, and Strategic Telecommunications of Eau Claire will be adding 30 employees. Furthermore, Jones said, "Economic development officials have been contacting other employees in the area to find openings that the persons being laid-off may be able to fill." It is expected that some will return to the technical colleges and universities to pursue further training or a degree in a new career field.

Jones also says other programs such as SCORE (Service Corps of Retired Executives) will aid those willing to start their own business. Jones doesn't foresee Eau Claire doing anything different in the future to attract business into Eau Claire, stating the past several years' efforts have been successful.

As the local and national communities alike try to grip the economic confusion, Bush and Kerry will attempt to captivate voters with their economic proposals. The performance of the economy in the next few months and throughout the summer will have a profound effect on the value of each candidates claim(s).

If the economy continues to perform well and hiring begins to occur, it could serve Bush well, creating imagery of further prosperity, possibly attracting voters. On the other hand if the economy performs well but the unemployment rate remains high, skepticism may set in, and Kerry's words may echo louder in the ears of the voters.

There are many other possibilities that may occur amid the last two assertions as well. Inevitably they will shape both the campaigns themselves and the minds of society. Stay tuned.
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