Iowa, just as with other states, has become dependent on the federal government for support. Iowa’s $7.6 billion state budget is dependent on the equivalent in federal aid to help fund numerous programs. Through these funds, the federal government can impose both funded and unfunded mandates on the states. This growing dependency on Uncle Sam is dangerous not only because […]
The rising cost of property taxes are a concern for both individuals and businesses across Iowa. Often blame is placed on county assessors for high property taxes. A reason for this is the fact that taxpayers receive an assessment notice in the mail and are angry because of the increase in property values. Property is assessed upon market values; the […]
Iowa’s economy has begun the process of reopening with continued limitations due to social distancing. Nevertheless, economic uncertainties remain. How will businesses cope with operating at limited capacity? Will Iowa consumers feel safe to fully reintegrating into the economy or will a fear of a “second wave” keep people away? How will lost economic activity impact state and local tax […]
Iowa’s economy is reopening, but the economic impact of COVID-19 (coronavirus) is still uncertain. Iowa’s April unemployment rate was 10.2 percent because of business closures resulting from social distancing policies used to mitigate the virus. The economic impact of COVID-19 is still a fluid situation. One of the uncertainties is the impact of the virus on state and local revenues. […]
Executive Summary As of May 20, 2020, the CDC calculates that COVID-19 has generated 99,498 U.S. deaths and 449 Iowa casualties. Per 1,000,000 in population, this represents 303 deaths for the nation, and a much lower 149 for Iowa. Due to COVID-19, the U.S. economy contracted by 4.8% in Q1, 2020, and Iowa’s economy experienced: Highest level […]
The COVID-19 pandemic is precipitating an unprecedented economic downturn, and small businesses are likely to bear the brunt of it. Mandatory shutdowns and social distancing are forcing many small businesses to shut their doors, leaving millions of people out of work and driving down sales. Even when governments begin lifting social distancing restrictions, the residual effects of unemployment and disrupted […]
Iowa’s unemployment rate for April hit a historic high of 10.2 percent, up from 2.7 percent just one year ago. Iowa Workforce Development reported that the “number of unemployed Iowans jumped to 175,300 in April from 56,600 in March.” The national unemployment rate stood at 14.7 percent in April. Kevin Hassett, who serves as an economic adviser to President Donald […]
Do you know that the income taxes you pay to the state of Iowa makes up the majority of the General Fund budget? Iowa’s General Fund is supported not just by income taxes, but also sales and a variety of other taxes, fees, and revenue sources. In addition, the budget is supported by taxes paid to the federal government. In […]
Iowa’s economy is in a recession marked by high unemployment, not seen since the Great Depression of the 1930s. Iowa’s economic crisis is a result of the coronavirus (COVID-19), which has forced an economic shutdown of the state. Low commodity prices are also having a detrimental impact on the farming industry in our state. Ernie Goss, PhD, who serves as […]
“I’m warning of an eradication of the American memory that could result, ultimately, in an erosion of the American spirit. Let’s start with some basics: more attention to American history and a greater emphasis on civic ritual,” stated President Ronald Reagan in his Farewell Address to the nation. President Reagan’s warning still holds true today. We are confronted with a […]
David Kennedy, prominent historian and Stanford University professor, in an interview with Governing discussed the COVID-19 (coronavirus) emergency in relation to the Great Depression. In that interview he stated, “[President] Calvin Coolidge said that if the federal government went out of business, the average person wouldn’t notice for six months, except for the post office. Now, the federal government is twice the size of the states all put together.” […]
The United States is confronted by an unprecedented crisis with the coronavirus (COVID-19) pandemic. From an economic standpoint, the COVID-19 crisis is being compared to the Great Depression with the growing army of unemployed Americans and the possible historic loss in state and local tax revenues. In March, Iowa along with other states, closed the economy except for essential businesses […]
Executive Summary As of April 24, the CDC calculates that COVID-19 has generated 24,555 U.S. deaths and 48 Iowa casualties. Per 1,000,000 in population, this represents 75 deaths for the nation and a much lower 15 for Iowa. Due to COVID-19, the U.S. economy contracted by 4.8% in Q1, 2020, and Iowa’s economy experienced significant hardships. Highest level […]
The High Cost of Economic Development Incentives as a Tool for COVID-19 Recovery Overview: The last sustained period of economic downturn in the United States saw explosive growth in the size and scope of state and municipal tax credit and abatement programs, subsidies, grants and other forms of economic development incentives. With the benefit of hindsight and new research […]
In an attempt to slow the spread of the coronavirus (COVID-19) the national economy is closed, which is resulting in millions of people unemployed and businesses wondering if they will survive. Shelter-in-place and social distancing policies are working to slow the spread of COVID-19, but the longer the economy remains closed the greater the damage will be. There is great […]
The coronavirus (COVID-19) is impacting Iowa’s entire economy. Social distancing, meant to slow the spread of the virus, has resulted in business closures and vast numbers of Iowans forced into unemployment. It is also impacting Iowa’s agricultural economy. A new study by the Center for Agricultural and Rural Development at Iowa State University estimates that COVID-19 could impact agriculture in […]
The coronavirus (COVID-19) is frightening enough, but the economic consequences of the virus makes the situation even more terrifying. As a result of COVID-19, thousands of Iowans are filing for unemployment and businesses across the state are trying to fend off bankruptcy. The current “cure” or deterrent to stopping the spread of the virus is social distancing and shelter-in-place policies, […]
The COVID-19 (coronavirus) national health emergency is requiring national sacrifice, the scale of which has not been seen in some time. Governors in each state are tasked with filling dual roles: providing up to date information to their citizens and coordinating resources and relief. Iowa’s Governor Kim Reynolds is demonstrating remarkable leadership in this crisis. Even in times of […]
“Why can’t the greatest economy in the history of the world produce swabs, face masks and ventilators in adequate supply?” asked Larry Summers, who served as Secretary of Treasury under President Bill Clinton. If COVID-19 (coronavirus) is not scary enough, Americans are learning that, as a nation, we have become dependent on foreign countries for essential medicines and medical supplies. […]
The threat of a national economic recession hangs over the United States as a result of the health emergency caused by the COVID-19 (coronavirus) pandemic. While much attention has been paid to what lawmakers in Washington D.C. have done, states and localities are also bracing for an economic recession. A month ago, Iowa’s economy was in a strong position with […]
By Matthew D. Mitchell, Senior Research Fellow, Mercatus Center COVID-19 presents a challenge of extraordinary scale and complexity. State policymakers across the country, like so many of us, want to know what they can do to help our nation’s healthcare professionals rise to this challenge. Their first task should be to eliminate or suspend laws that stand in the […]
News outlets across Iowa are reporting on examples of humanitarianism and service during the COVID-19 (coronavirus) health emergency. These news stories are documenting the actions that businesses and individuals are providing in this time of crisis. Below are a few of those stories. KCRG Channel 9 – Des Moines Dubuque Hy-Vee stores giving away more than 40,400 mini peaches at […]
News outlets across Iowa are reporting on examples of humanitarianism and service during the COVID-19 (coronavirus) health emergency. These news stories are documenting the actions that businesses and individuals are providing in this time of crisis. And while this type of reporting is wonderful, it’s not able to include the countless unseen acts of kindness as Iowans help each other […]