Troy plan for economic education 2013

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Troy Plan for Economic Education

January 2013

The Wealth of Nations: An Inquiry into the Nature and Causes first published in 1776, is Smith's classic treaties on economic liberalism.

The Theory of Moral Sentiments- This work was about those standards of ethical conduct that hold society together, with emphasis on the general harmony of human motives and activities under a beneficent Providence.

Adam Smith 1723-1790

"Agriculture, manufactures, commerce, and navigation, the four pillars of our prosperity, are the most thriving when left most free to individual enterprise." - Thomas Jefferson

Free enterprise is an economic system where few restrictions are placed on business activities and ownership. In this system, governments generally have minimal ownership of enterprises in the market place. This system aims for limited restrictions on trade and minimal government intervention.

Free Enterprise

"Every individual necessarily labours to render the annual revenue of the society as great as he can. He generally neither intends to promote the public interest, nor knows how much he is promoting it ...

He intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention.

I have never known much good done by those who affected to trade for the public good."

Invisible Hand

Pursuit of self-interest

Division of Labor – to make a smaller quantitof labor create a larger qualtity of work

Freedom of Trade Why are all men created equal – why do we have

property rights

Three Principles

Money has no intrinsic value

There is no fixed amount of wealth in a nation

Wealth must be measured by the volume of trades in goods and services

Gross Domestic Product

French physiocrats- economists- First with a theory based on private property, minimal government, beureacratic noninterference

Farming and mining were the only productive activities- not manufacturing or mercantile

Adam Smith believed the economy was shaped by the nature of man

Physiocrats believed the nature of man was shaped by the economy

French Physiocrats – First Economists

If the society were annually to employ all the labor it could annually purchae.. The produce of every succeding year would be of vastly greater value

An economic system in which economic decisions and the pricing of goods and services are guided solely by the aggregate interactions of a country's citizens and businesses and there is little government intervention or central planning. This is the opposite of a centrally planned economy, in which government decisions drive most aspects of a country's economic activity.

Market Economy

As early as 1790, Thomas Jefferson had hailed The Wealth of Nations as the best book in political economy.

His friend Bishop James Madison (1749–1812), who was president of William & Mary College for 35 years, was the first professor of political economy in the United States. A libertarian emphasized that "we were born free," Bishop Madison had used the Wealth of Nations as his textbook.

Thomas Jefferson expressed the "hearty prayer" that the book would become the basic American text in political economy.

Thomas Jefferson and Wealth of Nations

“Every society has a right to fix the fundamental principles of its association.“

‘Some people - and businesses - would prefer that government not play referee to the game of business, not fix rules that protect labor or provide for the protection of the commons and the public good.

We must say to all [such] individuals, that if they contemplate pursuits beyond the limits of these principles and involving dangers which the society chooses to avoid, they must go somewhere else for their exercise; that we want no citizens, and still less ephemeral and pseudo-citizens [like corporations], on such terms. We may exclude them from our territory, as we do persons infected with disease."

Thomas Jefferson in 1806

a stable currency to make markets possible a legal infrastructure and court systems to

enforce the contracts that make markets possible

educated workforces through public education workers show up at their places of business after

traveling on public roads, rails, or airways Businesses are protected by police and fire

departments Communications follow public rights-of-way

maintained and protected by government.

The Other Side – Governments provide

Economic Development is….

The attraction of capital to your community

AgricultureMiningManufacturingDistributionHeadquartersBusiness servicesTourism – Accommodations and Entertainment

Economic Development is….

Wealth Consumers

Health CareConstruction/HousingRetailEducationGovernment ServicesAccommodations and Entertainment

What is Economic Development?

Policies that governments undertake to meet broad economic development objectives- price stability, etc.

Policies and programs to provide infrastructure and services

Policies and programs directed at improving the business climate

What is Economic Development?

No single definition incorporates all of the different strands of economic development. Typically economic development can be described in terms of objectives.

These are most commonly described as - creation of jobs and wealth- the improvement of quality of life- process that influences growth and restructuring

of an economy to enhance the economic well being of a community.

What is Economic Development?

Business Finance/IncentivesMarketing/Business AttractionBusiness Retention and ExpansionNeighborhood DevelopmentSmall Business DevelopmentInfrastructure and real estate

SEVEN COMPONENTS of ECONOMIC DEVELOPMENT ACTIVITIES

1. Marketing and sales- prospect management, materials, advertising – Economic development is the conscious decision of existing private and public sector organizations to invest in working with existing companies and potential new companies to make investments in the community.

2. Location- natural resources, customers, suppliers – Economic development programs must demonstrate a comprehensive understanding of the needs of each industry segment and how the resources of the community and proximity of customers and suppliers meets the needs of each industry segment targeted for growth

3. Buildings and Sites- Economic development programs must insure that there are existing sites and buildings that meet the needs of companies interested in making new investments in the community.

4. Utility Infrastructure-transportation (road/air/rail/port) water, sewer, telecommunications – Economic development programs must insure that the public and private infrastructure is sufficient to accommodate increased growth.

SEVEN COMPONENTS of ECONOMIC DEVELOPMENT ACTIVITIES

1. Marketing and sales- prospect management, materials, advertising – Economic development is the conscious decision of existing private and public sector organizations to invest in working with existing companies and potential new companies to make investments in the community.

2. Location- natural resources, customers, suppliers – Economic development programs must demonstrate a comprehensive understanding of the needs of each industry segment and how the resources of the community and proximity of customers and suppliers meets the needs of each industry segment targeted for growth

3. Buildings and Sites- Economic development programs must insure that there are existing sites and buildings that meet the needs of companies interested in making new investments in the community.

4. Utility Infrastructure-transportation (road/air/rail/port) water, sewer, telecommunications – Economic development programs must insure that the public and private infrastructure is sufficient to accommodate increased growth.

SEVEN COMPONENTS

5. Incentives and taxes- Economic development programs must insure that there are sufficient incentives to be competitive and that these incentives provide advantages, or at least equalization, of tax structures to encourage new investment.

6. Workforce- The community must provide some competitive advantage in relationship to

the workforce availability and productivity. This factor is increasingly important in certain industry segments.

7. Quality of Life- education, housing, healthcare The community must provide competitive advantages in relationship to the quality of life aspects of the community. This factor is increasingly important in certain industry segments.

SEVEN COMPONENTS

5. Incentives and taxes- Economic development programs must insure that there are sufficient incentives to be competitive and that these incentives provide advantages, or at least equalization, of tax structures to encourage new investment.

6. Workforce- The community must provide some competitive advantage in relationship to

the workforce availability and productivity. This factor is increasingly important in certain industry segments.

7. Quality of Life- education, housing, healthcare The community must provide competitive advantages in relationship to the quality of life aspects of the community. This factor is increasingly important in certain industry segments.

Role of economic development practitioner

Community LeaderCatalystGap FillerAdvocateEducatorVisionaryEconomist/Business AnalystReal Estate/Infrastructure DeveloperFinancerSalesperson

Barter- Food, Minerals, Jewelry, Clothing

Military Activities – Bronze and Metals

Trade- Greeks, Italians and Dutch

Manufacturing- Clothing

Flemish- First Tax Abatement in 14th Century

History of Economic Development

1700 – 1820 Attraction of Residents

1820 – 1860 Attraction of Residents, capital for infrastructure, export of agricultural products

Civil War and National Road

1860 – 1920 Growth of Resource based manufacturing- Petroleum, iron and steel, meat and food products, clothing, ship building, agricultural equipment

Manufacturers attract immigrant residents

1920 – 2000 Attraction of Entrepreneurs and Corporations

2000 – Attraction of Manufacturers, Non-manufacturers, business services

Attraction of residents

History of Economic Development in Ohio

Ohio has lost almost every major industry that drove our economy

- Petroleum Refining- Coal and mineral mining- Shipbuilding- Wagon making - Agriculture Equipment- Clothing and shoes- Livestock ag and meat processing

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History of Economic Development in Ohio

Ohio has gained new industries and is a leader in lost almost every major industry

- Auto Parts - #1- Steel Production - #1- Polymer (plastics)- #1- Industrial Equipment- #1 - Food Processing- Pharmaceuticals- Biotech- Distribution and air cargo- Insurance-

History of Economic Development in Ohio

No colony in America was ever settled under such favorable auspices as that which has just commenced at the Muskingum. If I was a young man, just preparing to begin the world, or if advanced in life and had a family to make provision for, I know of no country where I should rather fix my habitation. – George Washington 1788

Ohio Map

Description:General Rufus Putnam (1738-1824) created this map of Ohio in 1804, one year after Ohio became a state. He made the map, one of the first maps of the state, while serving as general surveyor of the United States. It shows the boundary between Ohio and American Indian lands, marking several forts in the Northwest Territory, including Fort Defiance, Fort Wayne, and Fort Recovery.

200 years ago, Ohio had 5,000 former European settlersIt was primarily Shawnee and Miami Indian territory

John D. Rockefeller built the first oil refinery in the world In Cleveland, Ohio.

Ohio has lost almost every major industry that drove our economy

- Petroleum Refining- Coal and mineral mining- Shipbuilding- Wagon making - Agriculture Equipment- Clothing and shoes- Livestock ag and meat processing

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History of Economic Development in Ohio

Above (front to back):.

In 2008-

Ohio had three times more new plants and expansions than plant closings and downsizings

More jobs were projected to be created than to be laid-off

25% of those to be laid off were related to DHL and GM

The Dye Building – Center of Trade

Troy Buggy Works

Troy Sunshade - 1887

CC Hobart and Hobart HQ

Hobart Brothers was incorporated in 1917 by Charles Clarence (C.C.) Hobart, along with is wife, Lou Ella, and their three sons, Edward, Charles and William.

  The company began its manufacturing endeavors with a variety of products

including generators (Dynamos), metal office furniture and air compressors.

In 1925, it produced its first welder, which started Hobart Brothers on the path to becoming a preeminent company in the welding industry.

Established the Hobart Institute of Welding Technology in 1930. The school became a separate non-profit entity in 1940 and has since trained more than 90,000 welders.

  In 1937, Hobart Brothers turned to the production of stick electrodes and

shortly thereafter, the company began serving an active role in manufacturing for World War II. It produced more than 100,000 welders and approximately 45,000 generators to support the war effort.

Hobart Brothers

Hayner Distillery

In aviation history the 1920s and 1930s are collectively known as the

golden age of aviation.

Waco became the best known aircraft manufacturer in the US starting in 1927

when the popular Waco 10 was designed, resulting in a 3 year production run of over

1600 aircraft.

In 1935 Waco delivered its 2500th aircraft, and by 1940 Waco had built more than 3000 planes with more Wacos registered in America

than aircraft of any other manufacturer. 

The Goodrich Corporation, formerly the B.F. Goodrich Company, was founded in Akron, Ohio in 1870 as Goodrich, Tew & Co. by Dr. Benjamin Franklin Goodrich. The company name was changed to the "B.F. Goodrich Company" in 1880, to BFGoodrich in the 1980s, "Goodrich Corporation" in 2001and to UT Aerospace in 2012.

In 1869 Benjamin Franklin Goodrich purchased the Hudson River Rubber Company, a small business in Hastings-on-Hudson, New York. The following year Goodrich accepted an offer of $13,600 from the citizens of Akron, Ohio, to relocate his business there.The company grew to be one of the largest tire and rubber manufacturers in the world.

Waco Airfield and Production Facility

Early Goodrich Plant

Troy

Sunshade

ConAgra consolidates Slim Jim’s after fire in North Carolina

F & P America

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Troy Plan for Economic Education

January 2013