Butte, Glenn, Tehama Counties: Your Local Perspective

Over the past twenty years there have thousands of communities around the country who have embraced the concept of "Buy Local" goods and services. (I recall Butte County had a buy local program back in the 1980s.) The core concept here is that buying from local stories or service providers (especially locally owned), rather than from stores who may be from outside the local area (owners from outside the local area). The idea is great at first glance, and can be an outstanding way to grow local entrepreneurs and protect the environment (goods are produced locally, versus shipped from hundreds if not thousands of miles away, thus a smaller carbon footprint). Furthermore, most locally produced goods do not require as many if any preservatives, which is always a plus. (For more information on the buy local argument, see: http://www.livingeconomies.org/ )

About 5-8 years ago, Bruce Jans prepared a number of outstanding profiles of locally "creative" artists who contribute to the community through their art. These profiles have been made available online through the Artoberfest website (click here to launch). The 2 minute videos are outstanding profiles of regional artists, including performance artists.

The act of creating these profiles itself is a form of creative art. More on Bruce Jans is available by clicking here .

Over the past six months we've witnessed a large number of retailers falling victim to the current economic crisis; the most recent victim is Circuit City. While much of the decline in retail spending can be tied to the economic crisis, another driving force is a retail marketplace which has outpaced consumer earnings. Over the past 10 years, many consumers have been spending beyond their means. For the past 50 years, consumer savings rates have declined to almost zero. Consumers have also been racking up more and more debt, satisfying their desires for immediate gratification through goods and services by using credit cards, or pulling equity out of homes which are often already heavily leveraged.

Obviously this type of spending was not sustainable. We've known that house bubble had to burst. We just didn't anticipate it would burst with the banks and stock market.

During last week's Tri County Economic Forecast Conference, Randall Kempner referred to the importance of creativity. Specifically, he referred to the writings of Richard Florida, and his books which highlight the importance of attracting and retaining a talented workforce, and the importance of communities that accept different perspectives and differing views. (I highly recommend reading The Rise of the Creative Class, and The Flight of the Creative Class.)

Creativity is vital. One important and often overlooked aspect of any community is the arts. Last week the National Governor's Association released a new report highlighting the importance of the arts to community economic development. The report, available online (click here) provides an outstanding portrait of the ways in which the arts play an important role in supporting regional economic development across America.

Today's economic crisis has drammatically impacted consumer confidence. I'd like to learn more about how the economic climate has changed your spending (if at all). Please click the link below to provide your feedback. After completing the survey, you'll be provided with instant results for all survey participants.

Click here to take the survey.

At the Tri County Economic Forecast Conference, Dr. Robert Eyler did an outstanding job of highlighting the factors affecting all of us at the national, state and local level. We look forward to hearing more from Dr. Eyler in the future; his dedication to supporting regional economies by reaching out to education business owners and elected officials is vital to helping us grow out of our current economic crisis.

Here is a copy of the presentation delivered by Dr. Eyler. Building upon his formal presentation, Dr. Eylers response to questions highlighted his knowledge of the problems we face, and the actions necessary to build a strong North State economy.

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Consumer confidence is suffering as a result of a number of factors, including (1) the housing bubble (and the resulting decline in home values), (2) banking instability, and (3) stock market declines (including retirement, 401ks, college funds, etc). The resulting economic uncertainty is causing consumer to reduce spending, which is further causing local, regional and national retails to suffer. Today's news about the demise of Circuit City is yet one more business falling victim to the economic decline. We are likely to see more local businesses impacted by the reduced consumer spending. The next business may be another restaurant, or one of the many older businesses that have become institutions in North State communities (I will not even suggest a name for fear of jinxing the business).

Like so many of you, I've been very busy with work and family, I haven't been taking the time to write on this blog (ok, I also misplaced the password to log in). Well, I'm back. I'll post new information, data, and articles on topics related to the regional economy, regional economic development and our current economic crisis.

I look forward to hearing from you through your comments.

Dan