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Wisconsin IDEA
Insight • Data • Economics • Analysis
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All Measures of Inflation are Showing Rising Prices
Current Rate of Inflation Still Below Historic Highs of the 1970s
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After a historically long period of low inflation rates, the post COVID economy has seen a return of unacceptably high rates of inflation. Three main arguments have been advanced as to why inflation has returned to high rates. First, COVID-induced shutdowns of the economy interjected what are referred to as “bubbles” in the supply chain. Finely tuned supply chains that are increasingly dependent on last-minute inventory strategies have been disrupted across the economy. As pent-up demand has been released continued problems with supply chains have caused demand to outstrip supply resulting in sharp price increases.
Second, federal stimulus policies, both in terms of government spending and monetary policies around interest rates and monetization of the debt behind government spending, were perhaps too aggressive and fed into higher levels of pent-up demand. Third, because of historically low rates of inflation, many firms were hesitant to raise prices, and many pursued the strategy of “shrinkflation” to keep downward pressure on prices. Rather than rise prices, firms cut back on levels of services and packages sizes. For example, rather than rise, the price of coffee firms went from twelve to ten once packages while retaining the same price. With higher rates of inflation, some firms are seeing opportunities to raise depressed prices.
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Econ Quiz: Escape to Wisconsin
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Econ Quiz readers of a certain age may remember the catchphrase “Escape to Wisconsin” found on many bumper stickers. This slogan was used to promote the state’s tourist destinations, but may also have referred to Wisconsin as a growing destination for owners and renters of the state’s seasonal and recreational housing developments. Indeed, Wisconsin’s seasonal and recreational housing units grew by over 50% in the 1970s and have continued to increase in number, albeit at slower rates since that time.
Homes for seasonal, recreational and occasional use account for 4.0% of all United States housing units and are concentrated in many counties associated with well-known tourist destinations including the Outer Banks of North Carolina; the mountainous Colorado Front Range; and coastal counties bordering the Gulf of Mexico in Florida and Texas. High concentrations are also found in Vermont, New Hampshire and Maine, which rank as the three top states in terms of seasonal and recreational homes as a share of all housing units. Other notable locations include counties with high levels of natural amenities in Idaho, Montana, New Mexico and Utah; counties around distinct destinations such as Lake of the Ozarks in Missouri, and the Northwoods of Wisconsin, Minnesota and Michigan. In fact, 20 Wisconsin counties have 20% or more of their total housing units designated as seasonal and recreational units. Vilas, Oneida, and Marinette counties are among the top 100 counties nationwide in terms of total seasonal and recreational housing units.
In Wisconsin, the non-metro distribution of seasonal and recreational housing units is even greater than the national average. Almost 70% of Wisconsin’s total housing units are located in metro counties compared to just 17% of its seasonal and recreational units. In comparison, rural counties with an urban population of 2,500 to 19,999 residents contain 16.4% of the state’s housing units, but 47% of all seasonal and recreational housing units. Furthermore, Wisconsin’s most rural counties are home to just 5% of all housing units and 27% of all seasonal and recreational units.
What percentage of all housing units in Wisconsin are classified as seasonal and recreational units?
A. 15.9%
B. 3.2%
C. 9.4%
D. 7.1%
E. 10.1%
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WIndicators Volume 5, Number 1: The Rise Of Entrepreneurship During the Pandemic
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Entrepreneurial activity increased sharply in Wisconsin in 2020 and 2021 during the COVID-19 pandemic. Entrepreneurship is a key part of any healthy economy but ensuring that new business activity leads to significant economic impact by creating high quality jobs can be difficult. Communities can take a lead role in a range of strategies that help entrepreneurs grow and be successful to make the most of this opportunity to improve their economies.
KEY POINTS
- In Wisconsin, business applications reached the highest level on record during the pandemic.
- Business applications increased by 21% from 2019 to 2020 and 23% from 2020 to 2021
- A small share of business applications will result in actual new businesses with paid employees.
Start-up activity accelerated during the pandemic across the U.S. In Wisconsin, business applications per month reached the highest level on record (Figure 1). From 2004 through 2019, Wisconsin averaged 3,175 applications per month. During the pandemic, from April 2020 through December 2021, applications increased to 4,716 applications per month. In total, there have been more than 136,778 new applications since the beginning of the pandemic, signaling the largest surge of entrepreneurship in at least 15 years.
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Employee Ownership: A Business Succession and Retention Strategy
Thursday, May 12, 11:00 am - 12:00 pm (CST)
The need to identify strategies for retaining businesses as baby boomers retire is more urgent than ever. Conversion to employee ownership is gaining traction as an effective method for retaining businesses, jobs, and wealth in local communities. Join us for a webinar featuring representatives from employee-owned businesses who will share their personal experiences with the business conversion process and the benefits and challenges of employee ownership.
Who Should Attend:
• Community and economic development providers
• Business owners or employees interested in learning about employee ownership
• Small business development centers
• Chambers of commerce
• Local and regional policymakers
• Advisors to business owners
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Early Care and Education in Wisconsin: Challenges and Opportunities
Dr. Alejandra Ros Pilarz discusses the early care and education landscape in Wisconsin, how it has changed over the past 15 years, and the implications for children and families. She describes the current state of the early care and education workforce, as well as challenges and opportunities for supporting the workforce and strengthening the early care and education (ECE) systems in the state.
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The Creative Economy Summit focuses on the work needed to incubate and support talent, increase creative work incubation, lead to business creation and retention, engage all Wisconsinites in creative opportunities, and provide the public and private leadership necessary to invest in a sustainable 21st-century economy. The Summit features ideas, information, research, resources, and case studies of creative investment, businesses, infrastructure, and partnerships throughout the state.
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(Channel 3000 - 4/18/2022)
(The Economic Times - 4/15/2022)
(Capital Times - 4/13/2022)
(Rice Lake Chronotype - 4/12/2022)
(WAOW New 9 TV - 4/1/2022)
(WQOW News 18 TV - 3/27/2022)
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Equal Employment Opportunity & Affirmative Action Statements
An EEO/AA employer, the University of Wisconsin-Madison Division of Extension provides equal opportunities in employment and programming, including Title VI, Title IX, the Americans with Disabilities Act (ADA) and Section 504 of the Rehabilitation Act requirements. Please make requests for reasonable accommodations to ensure equal access to our educational programs as early as possible preceding the scheduled program, service, or activity.
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