Although the economy remained uncertain in 2012, people worked hard toward jumpstarting a strong, healthy economy. There were a few setbacks, but here are the top 10 occurrences that collectively aided in the American economy moving forward.
1 Year of the Urban Innovator.
Business experts predicted that 2012 would be the year of the “Urban Innovator.” In 2011 many creative Black American entrepreneurs joined millions of risk-taking innovators racing into the startup frontier with dreams of developing their passions into the next big “thing.” Yet Blacks face some unique economic challenges that, ironically, could compel their competitive spirits.
They predicted STEM, or science, technology, engineering and math, will be a major focus of investment in K-12 education; a high volume of startup companies giving way to more entrepreneurs; access to “angel investments” or wealthy individuals not connected with venture capitalists or investment firms who are interested in getting involved with small businesses; and Black media telling the stories of the economic movement in Black America would be a few of the changes that would alter the economic landscape for Black and urban America.
2 A first for Indiana.
Indiana became the first state to launch a high-speed 100-gigabits-per-second (Gbps) network link dedicated to research and education. The network named Monon100, is 10 times faster than the current network link. With it, scientists and medical researchers will be able to rapidly share massive amounts of data created by modern digital instruments such as gene sequencers, powerful microscopes or the Large Hadron Collider. Monon100 runs from Indy to Chicago, linking the Indiana GigaPoP with Internet2, a national research education network. The Indiana GigaPoP, a partnership of Indiana University and Purdue University, serves as the network hub for the state’s colleges and universities.
3 Obama budget simplifies tax credits.
The Affordable Care Act includes a small business health care tax credit to help small businesses afford the cost of covering their workers, according to the Obama administration. The president proposed to allow small businesses with up to 50 workers to qualify for the credit; adopt a more generous phase-out schedule; simplify the credit by streamlining the rules; cap based on state average premiums.
The proposal was said to provide an additional $14 billion in tax credits over the next 10 years.
4 Foreclosures cost Blacks in equity.
Among the 10.9 million homes that went into foreclosure between 2007 and 2011, more than half of the “spill over” cost to nearby homes led to a $1 trillion loss in home equity for African-American and Latino families. This key finding from a report by the Center for Responsible Lending found that high concentration of foreclosures in neighborhoods of color perpetuate the disproportionate burdens in America’s foreclosure crisis. Black and Latinos comprise less than 30 percent of the nation’s population. Yet together, neighborhoods of color shoulder over half of the $1.95 trillion in the drain on neighboring property values due to foreclosures. Additionally, minority communities still suffer from stark wealth gaps compared to whites.
5 Fair pay for all.
Indiana ranked fifth worst in the U.S. in equity for women’s pay. For every dollar a white man makes in Indiana, his female counterpart pulled in 74 cents. If she happens to be Black, that dropped to 62 cents. Latina? A mere 54 cents. This startling wage gap has remained stagnant for several years. The nation’s wage gap comes in at 77 cents. In the report, Vermont and California tied for lowest gap at 84 cents. Why Indiana managed to fall so far down on the list is a complicated question that could encompass many factors from the types of jobs women hold to the job mix in the state to whether women are staying in the workforce or taking breaks to have children. One economist believes the ranking has everything to do with the state’s demographics.
6 Ace the interview.
Unemployment slightly decreased, however there were numerous people who remained without a job. While some gave up, others continued to hunt for employment. Of those who did get a job interview, many didn’t get the job due to interview challenges. Job consultants gave prospective employees guidelines on diffusing potential negative job interview situations. Some include: how to handle a flippant or insulting comment; how to negotiate salary; being humble in your successes; and how to handle an unresponsive interviewer.
7 Senior housing in Devington.
An $8.4 million senior housing project was proposed to be built on the city’s Northeastside Devington area to replace a vacant apartment building. The “First Devington” development replaced the former Arlington Palms Apartments with a 48 unit complex for seniors 55 and older featuring rain gardens, a walking trail, outdoor pavilion, medical center and an aquatic exercise pool. The project is slated to be completed by summer 2013 and was made possible by housing redevelopment incentives.
8Drought causes prices to soar.
Consumers paid more for beef, poultry and milk as the worst drought in 50 years spread across the Midwest destroying crops and sending corn and soybean prices spiking. Scorching heat caused crops to wilt, sending feeding prices higher and prompting many ranchers to reduce herds. The U.S. Department of Agriculture declared more than 1,300 counties across 31 states a disaster area due to the extreme drought.
9 The dreaded “fiscal cliff” and Indiana.
The budget battle in Washington put nearly 24,000 Hoosier jobs at risk. Lawmakers tried to reduce the federal deficit by more than a trillion dollars over the next decade. According to calculations in a George Mason University report, Indiana’s reduced federal funding would remove about $1.2 billion from the state’s economy. More than half of the Hoosier job losses would come from defense cuts. Much of the rest was said to affect education. The automatic cuts were a provision of the Budget Control Act of 2011.
10 Liquefied Natural Gas.
Citizens Energy Group announced filing with the Indiana Utility Regulatory Commission (IURC) seeking creation of a multi-state transportation and industrial fueling business utilizing Liquefied Natural Gas (LNG). The new subsidiary is said to market and sell LNG as a competitive alternative to diesel fuel for use in heavy-duty vehicles or off road applications such as drilling rigs, rail and marine vessels. In 10 years, Midwest demand will exceed 500,000 gallons a day.
