A recap of this week’s top-five news items and resources from the intersection of business and government.
1. Economy indicates U.S. possibly tipping into recession; Maryland lagging behind country in pandemic job recovery
Economists view recessions as national events. However, past recessions have shown that some states’ economies continued to expand during a recession—particularly when the national recession was relatively mild. The Federal Reserve Bank of Philadelphia’s state coincident indexes (SCIs) can be used to assess whether recession-like conditions have developed in each of the states.
In October 2022, 27 states had negative growth in the SCI, which is an indicator that the U.S. may be tipping into a recession.
When it comes to jobs, Maryland is still lagging around the rest of the country in its recovery from the Covid-19 pandemic.
The areas of the state that have had the most trouble bouncing back are the D.C suburbs. Of the 50,000 lost jobs in Maryland, 31,000 of them are in the southern part of the state. Industries including leisure and hospitality, trade, transportation and utilities, and education and health services have seen the most jobs lost.
The lost jobs, according to Adam Scavette, regional economist for the Federal Reserve Bank in Richmond, are due to a few specific industries as well as a slow recovery in the counties around Washington D.C.
2. Small businesses weigh in on the minimum wage increase in Maryland
Maryland small business are weighing in on the impacts of increasing costs, including inflation and the rising cost to employ workers.
“I’m basically kind of not making money,” said Shawn Path, owner of Philly’s Best Pizza and Subs. “The employees are getting their paycheck but not me.”
Shawn has owned the pizza shop in Eldridge for nearly 20 years.
Unfortunately for him he’s having to pass the rising costs of doing business onto the customer.
3. Incoming Maryland governor ‘confident’ he can reach economic goals without tax hike
On CNN’s “State of the Union,” governor-elect Wes Moore said that economics will be his priority, and he is going to work to create pathways for “work, wages and wealth.” He said too many people are working in their jobs and still living below the poverty line, and he wants to make sure people own more than they owe.
Moore also said he plans to push for legislation to allow high school students to have an option to provide service to their communities for a year after they graduate.
Moore said he is “very confident” that he can accomplish the social programs he wants without tax hikes, adding that he is data-driven and heart-led as a leader.
4. Witness intimidation, other Baltimore crime issues among Maryland priorities in new Congress
Assisting Baltimore with violent crime prosecutions and prevention is among a number of legislative priorities for Maryland’s U.S. House and Senate members when the new congressional session begins Tuesday. Others include an effort to revive Baltimore’s Red Line light rail project, boosting federal resources and public access to the Chesapeake Bay.
Baltimore has been seeking more federal help to combat crime, and has worked with the Biden administration on initiatives to deter gun traffickers and share information with other cities about community violence intervention programs.
With the city surpassing 300 homicides in 2022 for the eighth consecutive year, the area’s federal lawmakers say more must be done.
5. Speaker deal slowly coming together
The House heads into a fourth day in search of a Speaker after Republican Leader Kevin McCarthy of California on Thursday lost a historic 11th ballot as some 20 hard-line conservatives continued to block his path. McCarthy and his allies offered new concessions to the Republicans who have effectively deadlocked the chamber.
Supporters and defectors spent hours huddled in the Capitol trying to finalize a deal that would include key rules changes to secure their support.
Secure your seat ➡️ Jan. 26
Meet the State
9:30 AM – 6:30 PM
Just confirmed: Senate President Bill Ferguson will speak during the General Assembly Leadership Panel.
Meet the State, presented by Amazon, is the premier, early-session gathering of legislative and state government leaders with the business community.
Register now to be part of these critical conversations and for your opportunity to inform legislators how businesses are driving the economy, advancing economic success and creating Maryland jobs.