VIDEO: Economist calls Delaware's recovery "lackluster"
A packed crowd of businessmen and women turn out for the New Castle County Chamber of Commerce's sixth annual economic forecast luncheon in downtown Wilmington.
WDEL's Amy Cherry reports.
The forecast for Delaware in a word?
Dr. Anirban Basu, CEO of the Sage Policy Group, tells WDEL why Delaware's recovery is lackluster.
"There is not major sources of oil and natural gas production here that we see in other parts of the country; other parts of the country also are associated with more rapid growth than you would expect to see in the Northeast Corridor," where we find Delaware right smack in the middle.
Delaware's unemployment rate remains lower than national average, but job growth is sluggish, and Basu says we've just got keep on keepin' on.
"Continue to invest in schools and education, continue to maintain one of the more benign tax regimes in the country, continue to have a pro-corporate mentality," recommends Basu.
He says some of the slow growth is due to uncertainty in Washington and also...
"The fact that taxes have gone up in recent months and so there's less disposable income in many households out there.
Basu says a lot of corporations are still holding onto their cash and a lack of confidence in every sector is truly holding us back.
He says look for the pace to pick up, maybe next year.
"It wouldn't surprise me if 2014, 2015 turn out to be quite decent years for the economy," says Basu because by then Americans will have adjusted to higher tax rates and the housing market will see be growing.
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