The nation's economy is on a long but sure road to full recovery, as is Wisconsin, according to a number of experts.
Federal Reserve Chair Alan Greenspan told the House Financial Services Committee Tuesday that the country has finally returned to its normal order of business, but warned the balance was still delicate.
\Despite the disruptions engendered by the terrorist attacks of Sept. 11, the typical dynamics of the business cycle have re-emerged and are prompting a firming in economic activity,"" he said. ""Even a subdued recovery beginning soon would constitute a truly remarkable performance for the American economy.""
According to Jon Udell, a UW-Madison professor emeritus of business, Wisconsin has borne the brunt of the recession because the downturn has been primarily located in the manufacturing sector. However, he said there is hope for the Wisconsin economy if inventories continue to decrease. If that happens, retail business will have to restock, creating a larger demand for the products manufacturers create.
""Manufacturing could see a substantial recovery if in fact that's what happens, because they'll get the benefits from inventory rebuilding,"" he said.
Despite the recession, business leaders have always maintained a positive outlook, said Jim Pugh, director of communications for Wisconsin Manufacturers and Commerce. According to a survey done by the WMC in October 2001, nearly 70 percent of 593 Wisconsin CEOs said they felt Wisconsin was on the right economic track.
""[The business executives] remain confident that they're going to make it, Wisconsin is going to make it and America is going to make it,"" he said. ""And when you have that level of confidence it's going to happen.""
Slightly less than half of the CEOs surveyed also said reducing taxes would have the largest effect in regard to helping their businesses.
""Wisconsin has the third-highest tax burden in the country,"" Pugh said. ""Businesses need less regulation, they need lower taxes and they need to be able to operate without fear of litigation.""
Udell said the state government should definitely not raise taxes, but did not know how large an effect lowering taxes would have at this point.
""Wisconsin is only a small part of the total market for manufactured good made in Wisconsin,"" he said. ""They sell in other states and other nations as well.""
Greenspan said the nation must be aware of not only itself but also its international surroundings but he praised the strength of the country.
""If ever a situation existed in which the fabric of business and consumer confidence, both here and abroad, was vulnerable to be torn, the shock of Sept. 11 was surely it,"" he said. ""The recuperative powers of the U.S. economy ... have been remarkable.\
