1. State of the Economy
Ryan Herzog, Ph.D.
Assistant Professor of Economics
Gonzaga University
9/28/2011
Prepared for INDC

2. Outline
• State of the National Economy
– GDP
– Unemployment
– Inflation (Monetary Policy)
• Local Economy (State and Spokane)
– GSP
– Unemployment
– Continuing Issues

3. State of the Economy

4. National Output

5. National Unemployment

6. Unemployment

7. Manufacturing and the Labor Force

8. Structural Concerns

9. Jobs
• The recession has simply magnified and sped up
job losses in the manufacturing sectors.
– The construction industry provided alternative
employment.
• We need to focus on retraining 5 million workers.
• Extending unemployment compensation does
not address the structural problems in the
manufacturing industry.
– Workers are searching for jobs that do not exist or will
not exist in the near future.

10. Inflation Rates

11. Short and Long-term Interest Rates

12. Investment

13. Conclusion on the National
Economy

14. State Unemployment

15. State Unemployment

16. Spokane Unemployment

17. Washington and Spokane Income

18. Foreclosure Rates

19. Washington State Housing
Foreclosure Rates (First Lien)
March 2011 December 2010 September 2010 June 2010 March 2010
Spokane 3.2 3.2 3.1 2.9 2.4
Seattle/Tacoma 4.1 4.0 3.7 3.1 2.8
Portland/Vancouver 4.1 4.7 3.7 3.5 3.4
Yakima 4.3 4.3 4.2 3.8 3.5
Olympia 3.6 3.5 3.3 2.8 2.4
Wenatchee 2.6 2.7 2.3 2.0 1.8
Tri Cities 2.1 2.2 2.2 2.0 1.9
Coeur d'Alene 3.8 4.0 3.8 3.8 3.5
Lewiston, ID 2.6 2.9 2.5 2.1 2.2
90+ Days - Delinquency Rates (First Lien)
March 2011 December 2010 September 2010 June 2010 March 2010
Spokane 3.2 3.1 3.2 3.5 3.7
Seattle/Tacoma 4.3 4.3 4.3 4.8 5.0
Portland/Vancouver 3.2 3.4 3.2 3.6 3.8
Yakima 3.2 3.3 3.8 3.9 4.0
Olympia 3.5 3.6 3.7 4.0 4.3
Wenatchee 2.6 2.6 2.8 2.9 3.1
Tri Cities 2.0 2.1 2.3 2.7 3.0
Coeur d'Alene 2.7 2.5 2.6 3.0 3.6
Lewiston, ID 2.1 2.0 2.5 2.6 3.1
*Source www.foreclosure-response.org (Center for Housing Policy)

20. Disclaimer