MTSU economist: Nissan electric job projections optimistic

By Geert De Lombaerde Posted on November 12, 2009 at 1:32 pm

David Penn at MTSU’s Business & Economic Research Center says the study prepared to help Rutherford County officials justify $62 million in tax breaks for Nissan was a tad too upbeat.

“The analysis done on the multiplier assumes that other jobs that Nissan has stays the same,” said Penn, who is also an economics associate professor for MTSU. “These models they use assume that all sources are fully employed to begin with, but we clearly know that’s not the case right now. So that brings down the multiplier a lot.”

For its part, the accused at Younger Associates say they’ve got the government backing them up.

“The analysis is based on the U.S. Bureau of Economic Analysis multipliers. They are specific to Rutherford County and they are specific to the automotive industry. They are reflective of the past performance of automotive operations in Rutherford County.”

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Tags: automotive industry, Business & Economic Research Center, David Penn, economic development, electric cars, incentives, manufacturing, Middle Tennessee State University, Nissan North America Inc., Rutherford County, Smyrna, tax breaks  

Four years till the good ol’ days

By Geert De Lombaerde Posted on September 25, 2009 at 12:22 am

MTSU’s David Penn says it will take the Middle Tennessee job market until 2014 to recreate all the jobs that have been lost during this recession. On the flip side, that creation should begin by the end of the year, Penn told Thursday’s Economic Outlook Conference.

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Tags: Business & Economic Research Center, David Penn, economic indicators, economy, employment, Middle Tennessee State University, MTSU, recession, recovery, unemployment  

If you haven’t already, adjust your expectations

By Geert De Lombaerde Posted on August 13, 2009 at 11:59 am

In a broad update of the economic picture, David Penn at MTSU’s Business & Economic Research Center says it does no good to look for big improvements in national or regional statistics. You’re only setting yourself up for sadness.

• Don’t make year-to-year comparisons (it is too depressing).
• Make comparisons with the previous month or previous quarter.
• Forget about ‘recovery’; settle for sustained improvement.

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Tags: Business & Economic Research Center, David Penn, economic indicators, Middle Tennessee State University, recession  

Economist: Local jobless number may have peaked

By Geert De Lombaerde Posted on May 28, 2009 at 2:58 pm

On the day the state’s jobless number edged closer to 10 percent, David Penn at MTSU says the local economy’s ‘dreadful’ first quarter may have been the worst we’ll see.

Initial claims have leveled off during the past several weeks, but this does not mean that the unemployment rate will soon begin to decline—far from it, as initial claims remain at a very high level. It does mean, however, that some of the upward pressure on unemployment has diminished; the high level of initial claims will continue to push the unemployment rate higher but not nearly as quickly as in the first quarter.

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Tags: Business & Economic Research Center, David Penn, economic indicators, economy, employment, housing market, job market, Middle Tennessee State University, unemployment