Economic development efforts in the Seventh District
For the most part, individual states are
limited in their ability to influence their economic
prospects. National monetary and fiscal
policies may offset state-level programs designed
to stimulate employment growth.
Shifting markets and foreign competition can
also undercut state efforts to lean against the
winds of change. But, while their impacts may
be limited, economic development efforts in
recent years have been a top priority for most
states. The increased attention devoted to state
economic development is primarily due to two
factors. First, the back-to-back recessions in the
early 1980s severely affected states dependent
upon manufacturing, causing great concern
among state officials. Second, the federal government
has been gradually lessening its role in
state development programs. Thus, states have
had to fill in the gaps and find new sources of
funds.
