Monday Morning Message

Advocacy | Workforce Development | Economic Development

Advocacy

The objective of the Marshfield Area Chamber of Commerce & Industry’s Advocacy Focus Area is to serve as the voice and policy advocate of its business members.

Click the following links for nationalstateregional and local news.

Biden’s capital gains tax plan would push US rate to one of highest in developed world | Fox Business
Wealthy Americans could pay one of the highest taxes on capital gains and dividends in the world if President Biden’s sweeping tax and spending plan becomes law. Biden has proposed raising the capital gains tax rate to 39.6% from 20% for millionaires; coupled with an existing Medicare surcharge, federal tax rates for the wealthy could climb as high as 43.4% – pushing the levy on returns to one of the highest in the developed world.

Evers’ veto ignores sign of the times – Empower Wisconsin
Gov. Tony Evers says he’s seen “no data” on Wisconsin’s worker shortage made worse by his stubborn refusal to end a generous federal pandemic-related unemployment bonus. On Tuesday, the governor quietly vetoed a bill that would end the $300 weekly unemployment enhancer. “We should be doing everything we can in our power to help give our local businesses a hand up,” said Assembly Majority Leader Jim Steineke (R-Kaukauna).


Workforce Development

A top priority of most communities is to grow, attract, and retain talented workforce. MACCI staff works closely with existing businesses and educators to create/foster initiatives to address current and future employment needs.

Hiring Bonuses Show Real Potential to Bring Back America’s Workers | U.S. Chamber of Commerce (uschamber.com)
Earlier this week, the U.S. Chamber released new polling data revealing some of the most impactful and immediate solutions employers and elected officials can deploy in helping address the country’s deepening worker shortage crisis. At the top of the list? Hiring bonuses.

Early Evidence on the End of Expanded Federal Unemployment Benefits
As of now, there are 26 states that will end their participation in the federal enhanced and expanded unemployment benefit programs. There is very limited data available yet, but the first four states (Alaska, Iowa, Mississippi, and Missouri) which ended benefits on June 12 experienced a substantial drop of 24.6% in initial unemployment claims in the first week after expiration of the federal expanded benefits, and a decline of 49.1% since the week ending May 15, when the program termination was announced in the four state.

New survey shows impact of worker shortage on local manufacturers (wkow.com)
A new survey from Wisconsin Manufacturers and Commerce (WMC) asked more than 200 businesses how they were handling the work shortage, and showed that 86% of business owners reported having a workforce shortage. “The survey quantifies what we’ve been hearing anecdotally for months,” said WMC President and CEO Kurt Bauer. “That they’re having trouble finding workers, that government is impeding their abilities to find workers with bad policies that are incentivizing people not to work.”


Economic Development

MACCI is eager to offer assistance in growing, expanding or relocating businesses. We pride ourselves in having professional, knowledgeable staff that can respond to your needs quickly, efficiently and confidentially.

S&P 500, Nasdaq rise to record highs to start the week led by Facebook (cnbc.com)
The U.S. stock market set more record highs on Monday, boosted by a court win for Facebook and broad strength in tech stocks. The S&P 500 ticked up 0.23% to 4.290.61 for its third-straight record close, while the Nasdaq rose 0.98% to an all-time closing high of 14,500.51. The Dow Jones Industrial Average, however, slid 150.57 points to 34,283.27 as energy and transport stocks came under pressure.

Gas prices at 7-year high $3 per gallon levels here to stay | Fox Business
Gas prices above $3.00 per gallon could be here to stay through the summer and beyond, according to GasBuddy Head of Petroleum Analysis Patrick de Hann. During an appearance on FOX Business , de Hann said that “it may be quite some time” before Americans see gas prices leveling off following the typical summer travel peak around the Fourth of July, with several factors at play that could delay the usual price decline after the driving season.

Consumer confidence snaps back to pre-coronavirus levels | Fox Business
Consumer confidence increased for a fifth straight month in June and returned to levels last seen before the onset of the COVID-19 pandemic. The Consumer Confidence Index this month rose 7.3 points to 127.3, the highest since February 2020. The Present Situation Index, which is based on consumers’ assessment of current business conditions and the labor market, increased to 157.7 from 148.7 last month. 

US home prices jump at fastest pace in more than 15 years | NewsNation Now
U.S. home prices soared in April at the fastest pace since 2005 as potential buyers bid up prices on a limited supply of available properties. The S&P CoreLogic Case-Shiller 20-city home price index, released Tuesday, jumped nearly 15% in April from the previous year. That is up from a 13.4% annual gain in March. The rising demand has caused an historic run-up in home prices, which has also been fueled by low mortgage rates. 

Stock Markets Cruise to Records in First Half, but Investors Grow Uneasy – WSJ
Stocks closed out the first half of the year with double-digit percentage gains, powered by an economic recovery that many investors believe is still gathering pace. The S&P 500 is up 14% this year, closing June at a record, while the Dow Jones Industrial Average has climbed 13%. This quarter will mark both indexes’ fifth consecutive quarter of gains, their longest such streak since a nine-quarter stretch that lasted through 2017. 

Lumber prices dive more than 40% in June, biggest monthly drop on record (cnbc.com)
The great lumber bubble of 2021 has popped. After a jaw-dropping rally this spring, lumber prices have come back down to earth as supply increased, speculative trading action cooled and homebuilding demand eased. Lumber futures tanked more than 40% in June alone, suffering their worst month on record dating back to 1978. The building commodity is down more than 18% in 2021, headed for the first negative first half since 2015.

Chip shortage causes Ford to cut vehicle production at several plants (cnbc.com)
Ford Motor is significantly cutting its North American vehicle production in July due to an ongoing shortage of semiconductor chips impacting the global automotive industry. The automaker plans to idle or reduce production at eight plants, including six in the U.S., for varying periods of time into early August due to the problem. Production of the Ford Ranger pickup and new Ford Bronco SUV also will be down for two weeks next month due to “an unrelated part shortage.”