Welcome to Talking Points for Friday, May 5, Cinco de Mayo edition. The monthly jobs report came out today. Was it worth celebrating? President Trump's tax plan hasn't passed but it's already having an impact. You'll never guess what Fed Chair Yellen says will light a fire under the economy. We have tips so you won't get arrested on your next flight (within limits). There's the story of a wind turbine that blows. And Jon Chesto writes about Rhode Island's bet on manufacturing's comeback.
Chesto means business
Betting on manufacturing: Rhode Island's reliance on manufacturing famously dragged down the stateduring the Great Recession, as the sector shed nearly 10,000 jobs in just 2008 and 2009. But Gina Raimondo hasn't given up on it. In fact, she's betting it will play a key role in her state's recovery.
The governor grew up learning firsthand the important role that making stuff can play in an economy: Her dad worked in the Bulova watch factory in Providence for nearly 30 years. But Raimondo also knows that manufacturing's future in Rhode Island belongs to specialized products made by highly skilled employees. (The watch factory closed, and the work went overseas.) To that end, she made workforce training a priority after becoming governor in 2015.
Now, she's looking to augment those efforts by seeking money – anadditional $12 million or so for manufacturing – from the General Assembly, as part of her annual state budget proposal. Part of the goal is to widen the base of manufacturers that can access existing incentives; the current rules leave many of the smaller ones out. The extra funds would also improve connections between manufacturers and the local research community, and boost programs at the state's biggest vocational school.
Although lawmakers probably won't wrap up budget negotiations until next month, Raimondo remains hopeful. These funds might not mean a lot to a corporate giant like a General Electric, which looked at Providence before settling on Boston as its new corporate home. But they could make all the difference to small mom-and-pop manufacturers, particularly the ones that want to reposition themselves for a new era and a new kind of economy.
Jon Chesto is a Globe reporter. Reach him at jon.chesto@globe.com and follow him on Twitter @jonchesto.
Executive Summary
Trump effect:
A $240 million shortfall in state tax collections have you worried? Concerned the state is sliding into recession?
The economy is actually not the culprit. Tax data show that investors and small businesses are putting off decisions affecting what they'll pay to the state until President Trump's tax-cut proposal is acted upon. To find out more, read the Globe's Evan Horowitz's breakdown here.
A vote for women
: Federal Reserve Chair Janet Yellen usually talks about keeping the economy from overheating. Well, speaking today at Brown University, Yellen had some thoughts on how to make the economy roar.
Yellen said current GDP could rise by 5 percent a year if the US removed barriers that limit women's ability to work, such as allowing greater flexibility for their professional and personal needs.
From Bloomberg: "If these obstacles persist, we will squander the potential of many of our citizens and incur a substantial loss to the productive capacity of our economy at a time when the aging of the population and weak productivity growth are already weighing on economic growth."
Monumental failure: The unusual white lollipop-shaped wind turbine on Deer Island stands as a testament to failure, Globe columnist Scott Kirsner reports.
Ogin Inc. planted the turbine in 2011. The company raised more than $150 million, including $3 million from the state and money from venture capital firm Kleiner Perkins Caufield Byers. But it was a better fund-raiser than turbine developer. Today, the turbine doesn't work, its owner has entered into receivership, and the company's investment is worth "nil." It's on MWRA property, and the authority may be stuck paying for its removal. Jobless rate falls: US employers added 211,000 jobs in April, knocking the nation's unemployment rate to 4.4 percent, the lowest it's been in a decade.
The hiring pace, as reported by the Labor Department, suggests employers believe the economy is doing well. The report found average worker paychecks grew at 2.5 percent over last year, less than a tight labor market might indicate. However, continued low unemployment should bring higher wages.
Trending Pick
Know your rights: We're now at the point where you can find articles that explain in great detail what can and cannot get you arrested on an airplane. This follows news that a Delta Airlines attendant threatened a toddler's father with arrest when he refused to seat the kid in a child seat.
Line Items
Jury awards record $110m in baby powder suit:
St. Louis woman alleged Johnson & Johnson powder gave her cancer -- Associated Press
FCC Chief says punish net neutrality rule violators:
Argues against rules that prevent violations -- NPR
Trump emboldens companies to fight CFPB:
Consumer watchdog challenged more in '17 than all of last year -- Wall Street Journal
FBI warns of surge in global cyber scams:
Frauds sought to steal $5.3b using fake emails -- Reuters
Boston lawyer settles with SEC for $90K:
Robert Crowe pays to end charges in pay-to-pay suit -- Boston Business Journal
ICYMI
Banks reinvent branches: You don't need a bank to make a deposit or withdrawal -- just a cell phone or ATM. But banks aren't ready to give up on branches.
As the Globe reported today, Bank of America has remodeled its Federal Street flagship branch, and makeovers are scheduled for all 1,500 outposts. Nationwide banks are transforming branches to look inviting like Apple stores, where customers will get assistance with complex issues like small business loans and mortgages. Bank of America has relocated its Merrill Lynch investment arm to the flagship branch's first floor and moved tellers to the basement.
Citizens Bank has renovated 35 branches, including eight in the Boston area, to have fewer tellers and more private meeting rooms for customers. Forty-five branches are slated for overhaul this year.
Bankers say branches won't go away because they attract new customers. Since 2010, Bank of America's deposit growth beat Capital One, which directs customers to do all of their banking online.
Talking Points newsletter is compiled by Edward Mason. Follow him on Twitter at @EBMason.
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