Farrell and Johnston size up the economy in the spring
The annual "Spring update" on the economy by Louis Johnston and Chris Farrell. They told an audience at Senior College in Alexandria that the state of the economy is good, but there are some worrisome storm clouds on the horizon.
Their engaging discussion explored everything from unemployment, worker shortages and wages, to the future of manufacturing and retail, and the possibility of a trade war.
Farrell and Johnston say the basic underpinnings of our economy could be eroded.
Commenting on the challenges of income inequality, trade and technological upheaval, Farrell said some people are left behind, and we "need to have a social safety net that's vibrant and allows people to continue to participate in this economy."
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Farrell said, "a fundamental question is, how do you make jobs more rewarding for people who make the median income or below? And how do you make the income rewards of those jobs better?" He added that "we need to have a political discussion about distribution of wealth."
Johnston said the way we respond to an aging workforce and economic volatility "will determine our economic future."
Both economists stressed the importance of immigrants to the national and local economy and Johnston said Minnesota will also have an "ongoing struggle to attract brainpower from other states."
Farrell reported that he hears a common refrain from business people that "we can't find quality workers." Farrell added, "well, guess what. Hire and train them. And don't complain. The workers are there and this is the opportunity to seize, and shame on us if we don't take advantage of it."
Johnston said he is "very worried about the international trade outlook because Minnesota is deeply connected with the international economy."
Louis Johnston is professor of economics at St. John's University and the College of St. Benedict and Chris Farrell is economics commentator for Minnesota Public Radio and APM's Marketplace.
Senior College is at the Alexandria Technical and Community College. The director is Amy Sunderland. The moderator on April 26, 2018 was Liz Fedor, trending editor for Twin Cities Business magazine.
To listen to their conversation, click the audio player above.