Sharks Say the Economy Is Stronger Than Ever
July 25, 2019
- Mr. Wonderful Shark says he’s never seen a stronger economy in his life
- Record profits for one major bank show a strong economy that’s still chugging along
- The jobless rate has fallen in every Michigan county since 2009
Want to get a good look at how the economy is doing? Just ask the Sharks from Shark Tank how many cool new companies, snazzy inventions and bootstrapping entrepreneurs they’ve invested in recently.
Local entrepreneurs are key to economic growth, so it’s no wonder why Kevin O’Leary from Shark Tank is saying he’s “never seen a stronger economy in [his] life.” Who better to give us an inside look at how entrepreneurs are succeeding than someone who invests in local entrepreneurs nearly every day of his life?
The stronger the economy, the more entrepreneurs find success, and the more successful their companies become.
But you may ask – why should we base our interpretation of the economy on the success of Shark Tank investments? After all, we’re hearing story after story of mom and pop shops, or even large retailers having to close their doors…
According to O’Leary (aka Mr. Wonderful), it’s because the sharks have diversified portfolios which include companies large and small and in nearly every sector that matters to the economy.
And while it’s always a shame when stores close, a dynamic and changing economy is a sign of strength, not weakness. Plus, with the Internet making it easier to get groceries, tools, electronics, and almost anything else delivered these days, it’s not necessarily the death of retail – just a change of it.
With all the skepticism surrounding our record-breaking economy, we thought it might be a good idea to remind you of some facts showing there is still plenty of room on America’s economic runway.
The first sign of continued economic strength: the job market remains tight.
When employers have trouble finding work, it puts more power in the hands of employees. Generally speaking, difficulties filling open positions lead to higher wages because employers can’t find workers otherwise. And that’s exactly what the data shows – as of last summer, average hourly wages rose nearly three percent from the year before.
In Michigan, the unemployment rate hovers around four percent with some industries struggling to fill open jobs.
Take Traverse City for example, where the unemployment rate is just over three percent. That means nearly every person in the city has a job, or at least those that want one. Because of the worker shortage in Traverse City, and cities like it, companies are turning to “innovative ways to lure applicants through the door,” according to Bridge MI.
One of the most promising signs of a worker shortage however, as exemplified in Traverse City, is that it helps lift the local economy overall and supports those who may have had a much harder time finding work in the past—or keeping it, especially when the issue is childcare. One local business is considering opening a daycare center for its employees. Talk about job perks!
Another sign of economic strength: consumer spending remains strong.
Bank of America, which serves 50 percent of all U.S. households, recently said they’re seeing a “steadily growing economy” based on record profits. So why should you care when a bank has record profits? Because it shows that companies, workers, employers and everyone in between has more money to spend, and that means the economy will keep growing.
Bank of America wouldn’t have seen a record profit in the second quarter of 2019 if the economy wasn’t still going strong.
How strong is the economy in Michigan?
But the part that’s most exciting for local Paychecks is the state’s growth in personal income. Incomes grew 16.3 percent over the last decade, placing Michigan in the top ten states for income growth.
Have you noticed local economic growth in the form of higher wages or employers having trouble finding workers? We’d love to hear from you and feature your story!