Continuously serving Kosciusko County since 1854
Those who sat in on Tuesday's economic briefing hosted by Lake City Bank heard plenty of optimism and a spoonful of criticism.
The good news about a surging economy is nothing new, but it's reaching historic levels as the economy continues on its mildly upward path for the seventh consecutive year.
Three economists outlined various aspects behind the economic up tick.
Among the notable points:
• Strong personal consumption and consumer confidence continues to be a main factor boosting the economy;
• The producer price index, which gauges prices at the point of production, declined for seven consecutive months this year, leading economist Paul Joray to suggest deflation - instead of inflation - has been occurring at the producer level;
• The local economy continues to be among the strongest in the state and the nation. Joray said Kosciusko and Elkhart counties continue to benefit from a strong recreational vehicle and manufactured housing markets. However, strong performances in those sectors over the past four years have weakened each year, he said.
Much of the optimism was tempered with similar reservations.
Even though unemployment rates in North Central Indiana continue to be tremendously low, the region hasn't seen much economic growth as a result of new jobs.
Although the current national economic trend has been one of the three largest in the postwar period, it has also been the weakest of the three, said economist Suzanne Konzelmann.
"Some call this the expansion without a boom," Konzelmann said.
Consumer spending dipped slightly this summer, but is expected to retain its strength through 1998, Konzelmann said.
She predicted interest rates might be hiked a quarter percent when the Federal Reserve meets in November, but she also predicted the economy would not fall into any type of recession before 2000.
The country has likely seen its last recession of the millennium, she said.
Aside from the three economists, the featured speaker was Dane Miller, founder and president of Biomet.
Instead of speaking about the orthopedic manufacturing operation, Miller touched on a pet topic - the overabundance of government regulation and private sector lawsuits.
His comments on America's apparent prevailing outlook on corporate business were a mix of both sincerity and sarcasm.
He said the growth of litigation and government regulation could ultimately hinder the U.S. economy.
"Profits have become viewed unfortunately as the evil secret to free enterprise. Profit motives seem to be by definition today a conflict of interest. Those of us who are motivated to manage our business around profits seem prepared to cheat, steal and pollute the environment and injure our workers and patrons all on the basis of profit," Miller said.
"And then the Robin Hood theory comes into play when the legal bar comes along and transfers those funds," he said.
"If profits, as they seem to be have become by definition a conflict of interest," contingency fees as well should be defined as a conflict of interest, he said.
Miller acknowledged the fact that Biomet has felt the brunt of the legal system. The company has juggled several major lawsuits in recent years.
