1. The Cape Fear Capital Connection on MyTalker Radio. WMYT 106.7 fm Monday, August 11, 2014 Curtis Wright and Thomas Vass Discuss: A Critical Analysis of the Proposed Pathways To Prosperity New Hanover County Economic Growth Plan How We Can Do Better Than This

2. “There has been a lack of leadership in the area in setting a vision for economic growth. This perception is validated by current policies in place that have the unintended effect of discouraging certain types of business that would be beneficial for the area.” From the Report. “… Discouraging certain types of business ” Like, for example, existing small businesses?

3. What Does Economic Research Suggest Causes Economic Growth? Locke Foundation. April 15, 2014

4. What Does Economic Research Suggest About What Causes Job Growth?

5. Established Small Firms Create About 60 % of All New Jobs In the last two decades about 60 percent of the private sector’s net new jobs have been created by existing establishments and about 40 percent from the churn of startups minus closures.

6. The U. S. Economy Is Splitting Into Two Parts With No Middle While businesses with 10,000 or more workers accounted for 16.7 percent of the jobs generated in 1987, they were responsible for 23.9 percent of the positions created in 2011. This bifurcation is one consequence of very bad trade policies, in 1992 and 2002, that killed small business in America.

7. What Does The Pathways To Prosperity Economic Growth Report Suggest? Do More of the Same, but do it better. the willingness to offer creative and unique incentive packages are important attract high-quality jobs and talent to the region. take on transformational initiatives that will have a positive, game-changing effect

8. Has The Existing Economic Policy Been A Big Success In The Past 50 Years? From the Report: “the region has a significantly lower average wage rate than its peer regions, the state, and the national average Measured in per capita terms, at $37,297 in 2012, Wilmington has a lower relative amount of economic activity than the state and nation Over the last five years, real per capita GDP declined by $1,034, down 2.7 percent.

9. Per Capita Income Is Down 6% Over the last ten years, growth in real values for the per capita income in New Hanover has declined by 0.3 percent (-$99) and in the last five years, is down by 6.1 percent (-$1,911)

10. Average Weekly Wages In New Hanover Are Lower Than In Mobile, Alabama!

11. Part of The Problem Is That Government Employs 4 Times The Number of Workers as Manufacturing Industry; We Need Just The Opposite Ratio

12. After The Break, We Will Describe A Vassly Better Strategy Change The Focus of Economic Policies To Small Companies In The Cape Fear Economy Link Industrial Recruitment of Large Companies To Those That Support Small Regional Companies

13. Step #1: How To Do Better Focus resources on existing small technology companies in the 7 county Cape Fear Region. In New Hanover and Pender Counties, alone, there are 112 small technology manufacturing companies. Of the 112, 94% employ less than 50 workers.

14. Step #2: Create The Capital Market Infrastructure For Small Companies To Grow Economic growth occurs when small companies make capital investments. Small companies need capital to service and supply the bigger companies in the region. In New Hanover, there are 5 big companies that would buy more products from the small companies, if the small companies met the criteria for the big companies. In Cumberland, there are 10 Big Companies, most connected to the Military Supply Chain.

15. Step #3: Support Capital Market Legislation In Raleigh That Allows North Carolina Citizens To Make Investments In North Carolina Companies Copy the proposed legislation in South Carolina called The South Carolina Small Business Capital Act. Link the new legislation to tax incentives for companies to make investments and for investors to invest in companies. De-emphasize industrial recruitment incentives for outside companies in favor of incentives for North Carolina companies.

16. Step #4: Direct Policy Attention to The 7 County Cape Fear Region, Where Citizens Work Every Day

17. Get The Government Bureaucracy and Crony Capitalist Political Interests Out Of the Process To Let The Free Enterprise System Do Its Work Government does not create wealth, only the private sector creates wealth. Government’s role must be limited to the functions that it can do: Creating the physical infrastructure and a supportive political environment for business to operate. Connect elected representative accountability for economic success or failure, so citizens know who to hold accountable. In other words, who is responsible for 50 years of economic failure?

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