— The U.S. economy has performed much better in 2023 than was projected a year ago, according to economist and UW-Madison alumnus Brad Tank.
“The forecast last year [was] resoundingly in favor of a much slower economy than actually materialized,” he said last week.
Tank is the chief investment officer for Neuberger Berman, an asset management firm with more than $400 billion under management. Speaking during the Wisconsin Alumni Association’s latest UW Now livestream, he said federal officials are successfully tamping down inflation despite ongoing economic headwinds.
Tank noted November headline price inflation was 3.1% while the “core” inflation rate that omits food and energy was about 4%. At the same point of 2022, both of those numbers were near 7%, he said, adding the Federal Reserve should get “a pretty good grade” on its efforts.
“So not only did they make some terrific accomplishments on the inflation front, they’ve managed to do it so far without an economic contraction and surprisingly strong economic growth,” he said.
Still, the global economy continues to experience “very unusual aftershocks” of post-pandemic monetary and fiscal policies.
“They are receding, there’s no question about it, but if we look at some of the reasons as to why forecasters got 2023 wrong in terms of economic growth, a lot of it just has to do with the unique characteristics of the post-COVID world economy,” he said.
In one example, he highlighted the “rise of the worker” as increasing wages have helped keep the national economy from slipping into a recession.
“At the time when a lot of the direct payments from the federal government either to businesses or directly to families and consumers were running out, wage growth was beginning to overtake generalized price inflation,” he said. “And it means that even here today, while the consumer is showing some signs of softening, the consumer in the United States remains in much better shape than people anticipated a year ago.”
Looking ahead to 2024, two-thirds of economic forecasters are now predicting a so-called “soft landing” or deceleration in growth without economic contraction, he said. Another third are expecting a recession or “meaningful” downturn.
“Consensus on inflation is, it’s going to continue to climb,” he said. “It will not get to [the Fed’s] target of 2%, but from current levels we’ll be in the mid-twos by the end of the year. And we generally don’t have much of a quarrel with that consensus forecast on inflation.”
He pointed to some complicating factors that could change that outlook, such as potential shifts in food and energy markets. Regional instability linked to conflicts such as the war between Russia and Ukraine could influence those factors, Tank noted.
Watch the video: https://www.youtube.com/watch?v=kmHgpwLAn8I
— A new EPA plan to eliminate every lead water pipe within 10 years could leave some Wisconsinites footing the bill to replace lines under their homes, experts warn.
Utilities are trying to help customers with the costs, but the experts say a lot depends upon the conditions at the local level.
For example, the proposal is mostly silent on requiring utilities or private landowners to replace lead water pipes located on private land and how that work will be paid for. Paying for the replacement of laterals on private land has been an ongoing issue in Wisconsin.
“They might love the idea of getting rid of their lead service lines,” Clean Wisconsin Attorney Evan Feinauer told WisPolitics. “But if they’re being asked to pay for that portion, it will have a disproportionate impact on poor communities.”
There’s currently no federal requirement any municipalities replace their lead lines on a specific timeline.
Service lines that spur off main lines and provide each residence water are usually split in half, with property owners technically owning one side while utilities own the other.
But replacing only one half, commonly called a partial replacement, “is actually doing a disservice and doing more harm than good to a customer,” Kenosha Water Utility General Manager Curt Czarnecki said. That’s because replacing only half would disturb lead contaminants in the pipes that remain.
Wisconsin has long grappled with logistical, legal and funding issues that have slowed replacing the nearly 160,000 lead water pipes across the state, a common source of toxic contamination in drinking water.
There are 158,330 utility-side and 141,473 private-side lead lines across Wisconsin, according to the latest PSC data. Those figures are also likely on the low side, since many older municipalities did not track which water pipe materials they used.
See the full story at WisPolitics.com: https://www.wispolitics.com/2023/231215report/
See the PSC data: https://psc.wi.gov/Documents/water/W22_W29_Service_Lines_Material_Type.pdf
— Festival Foods has been named the top disability-friendly employer in the state by Disability:IN Wisconsin.
This state chapter of the global nonprofit network recently announced its annual awards, recognizing people and businesses working to improve equity and inclusion for those with disabilities.
“These awards not only recognize the achievement of these individuals and organizations but also encourage others to follow in creating a more inclusive society,” Disability:IN Wisconsin Executive Director Judy Quigley said in a statement.
Festival Foods, based in De Pere, has developed a company culture that “fosters equal and accessible opportunities for everyone” in the local community, according to Friday’s announcement. The grocery chain now has 40 stores in Wisconsin and employs more than 8,000 people.
Meanwhile, Wallo Brands Principal Victor Agapov received this year’s Disability:IN Wisconsin Excellence Award. Based out of Middleton, the manufacturer was a founding member of the state Disability:IN chapter and Agapov was an inaugural member of the organization’s Board of Directors. The award recognizes the impact of his “countless volunteer hours” on the group’s work in the state.
See the release: https://www.wisbusiness.com/2023/disabilityin-wisconsin-celebrates-annual-inclusion-award-winners/
— The state’s health and transportation agencies would create a specialized transit pilot program under a bill being circulated by GOP authors.
Sen. Robert Cowles of Green Bay and Rep. Shae Sortwell of Two Rivers have sent a co-sponsorship memo to other lawmakers with details on LRB 1239, which would direct the state Departments of Health Services and Transportation to create such a program.
It would be organized through aging and disability resource centers in the state, coordinating services for people who need special transportation accommodations. This would effectively combine the oversight of nonemergency medical transportation with other programs such as those serving veterans or long-term care residents under one organization, the memo shows.
Bill authors argue the change would “streamline” the process of organizing special transit.
The legislation would also allow people enrolling in nonemergency medical transportation, or NEMT, to get transit help to other destinations such as the post office, grocery store or place of employment.
“DHS would still cover the NEMT portion of their transit, and providers would be allowed to receive reimbursement for the non-NEMT purposes of travel at the same rate,” the lawmakers wrote. “This would help care recipients save money and time on scheduling transportation, while also allowing the state to lower its own expenses in administering the programs.”
The co-sponsorship deadline is noon Thursday.
<br><b><i>Top headlines from the Health Care Report…</b></i>
— UW-Madison researchers are now contacting potential clinical trial participants through UW Health’s MyChart patient platform.
<i>For more of the most relevant news on COVID-19, reports on groundbreaking health research in Wisconsin, links to top stories and more, sign up today for the free daily Health Care Report from WisPolitics.com and WisBusiness.com.</i>
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#TOP STORIES#
# TruStage union workers get 15.5% raises in ratifying new contract
# Bear CEO stays bullish
# We Energies nears completion of $192 million liquified natural gas facility in Ixonia
#TOPICS#
# AGRIBUSINESS
– 200 USDA-funded projects create economic opportunity in underserved rural and Native American communities
http://wisconsinagconnection.com/story-state.php?Id=1084&yr=2023
# CONSTRUCTION
– Wisconsin faces up to nearly $1B in costs to replace private lead lines
# EDUCATION
– ‘There are going to be empty classrooms’: Students at Wisconsin state universities react to cuts and layoffs
– Madison hair business training draws young stylists from across U.S.
– Marquette names Northwestern Mutual exec as next business school dean
# ENVIRONMENT
– Nonstop dredging kept Mississippi River open this year, but moving sand creates its own problems
# FOOD & BEVERAGE
– East View Coffee Company opens Downtown, offers unique coffee experience
# HEALTH CARE
– Froedtert South, Anthem end acrimony, sign new contract
# MANAGEMENT
– Horizon Home Care & Hospice CEO to retire
# REGULATION
– Committee will vote to approve plans for Lake Monona waterfront
– Area home sales dip in November
# RETAIL
– The Buzz: Joseph’s Shoes set to permanently close after 50 years in business
# TECHNOLOGY
– Ransomware attack at Johnson Controls revealed ‘material weakness’ in IT controls: Filing
# UTILITIES
– Alliant Energy completes 624-acre solar project in Wautoma
# PRESS RELEASES
<i>See these and other press releases:
http://wisbusiness.com/index.iml?Content=82 </i>
Dept. of Corrections: Celebrates security staff graduates at Madison College
