Dear Members:

Last Thursday the 2013 Regional Economic Forecast provided attendees with an interpretation of the mixed economic indicators we see every day. The Naperville Sun and Daily Herald's coverage can be found by following the links below.

While all of our panelists agreed that the economy has stabilized, they shared a sobering assessment that the “fiscal cliff” combination of year-end tax increases and spending cuts would have – and may already be having – a negative impact on the economy.

I walked away from the event with a sense of optimism because the reasons cited for the sluggish economy are largely political problems – a dysfunctional tax code, untenable deficits, regulatory uncertainty, to name a few – and we can solve political problems through our democratic processes.

However difficult it may seem, it is far easier to encourage our officials to enact real and meaningful reforms, than it is to have government jumpstart or intervene in our economy. After a newly elected Congress and General Assembly are sworn in, we – the business community – must work with our officials and speak clearly on the steps they should take to get our economy and your businesses growing faster.

While governmental policy can’t create lasting economic prosperity (our panelists were vocal on that topic), it can improve the business climate and remove barriers to dramatic and real growth. For instance, in the area of trade agreements and doubling exports, American companies and workers have lost their competitiveness to global peers by a lack of leadership and action.

The business community, especially organizations like our Chamber, need to continue to press our officials to level the playing field and encourage access for American-made products to the 95 percent of consumers outside our borders.

The clouds of uncertainty aren’t just international or national in scope either. We have challenges in Springfield, Chicago and elsewhere in our state that threatens our region’s long-term economic vibrancy. We must keep a steady eye on Springfield and ensure that our community isn’t saddled with uncompetitive schemes to balance the budget and improve the funding ratios for public-sector pension plans.

Again these are political problems, and however difficult they may seem, they are not insurmountable. It is time for the General Assembly to act, not just talk, about major policy reforms. When the General Assembly finally does act, and if the reform is true and lasting, our state’s economy and fiscal health will begin to improve.

Thanks to your dedication, hard work and savvy, our regional business community is growing. We are stronger today than we were a year ago on several measures of local and regional economic activity.

Most importantly Naperville’s unemployment rate was down 1.4 percent to a rate of 6.4 percent for the month of September. Job creation and business growth are underway in our region and that is a positive sign for the rest of Illinois.

The economic outlook isn’t clear sailing, but we know where we want to head. Balancing the competing needs of government and the free market system is our most paramount challenge, but I always am optimistic about America’s prospects.

Let’s finish the calendar year strong – and of course VOTE!

Articles:

The Naperville Sun - Chamber's economic forecast: Nervous but Optimistic

Daily Herald - Economy likely to remain shaky, economists tell Naperville chamber


Sincerely,