Economic


 * __Economic trends from the period 1989-2009__**


 * July 1989- Most major banks cut prime rate to 10-1/2 percent
 * April 1990-Federal minimum wage rose from $3.35 to $3.80
 * December 1990-Federal Reserve cuts bank reserve requirements by $11 billion
 * April 1991-Federal minimum wage rose from $3.80 to $4.25
 * December 1991-Federal Reserve cuts the discount rate from 4-1/2 percent to 3-1/2 percent
 * December 1991-Prime rate reduced from 7-1/2 percent to 6-1/2 percent by many large banks
 * January 1992-TWA files for bankruptcy protection
 * February 1993-President Clinton announces economic plan, which cuts defense spending by $188 billion from 1994-1998
 * 1993 Military Bases closed throughout the country
 * November 19, 1993, NAFTA approved
 * November 1994 Federal Funds rate raised from 4.75 to 5.5 percent.
 * December 1994-Congress approved the General Agreement on Tariffs and Trade (GATT).
 * December 1994-The GATT accord cuts tariffs globally by roughly 40%, extends intellectual-property rights and
 * tightens rules on investment and trade in services.
 * January 1995- U.S. trade deficit soared by 68 percent to $12.2 billion.
 * March/April, 1995 Dollar hits post WWII low against yen and mark.
 * February 1996- President Clinton signed a landmark telecommunications bill into law.
 * February 1997- U.S. trade deficit hits 8-year high.
 * March-1998 The NASD and AMEX boards agreed to join the two securities market.
 * March-1998 The U.S. trade deficit for January widened to its worst level in six years.
 * December-1999 The euro fell to parity with the dollar for the first time since its launch in January as Europe’s common currency
 * September 2000 China was granted permanent normal trade relations status with the U.S.
 * September 2000 GDP growth rate for 2nd quarter was revised to 5.6 percent.
 * November 2001 Recession in the US began in March 2001, according to NBER.
 * December 2001 Enron declares bankruptcy.
 * January 2002, Taiwan joins WTO, Euro becomes legal tender in 12 countries
 * April 2002 SEC investigates Wall Street Analyst conflicts of interest
 * July 2002 WorldCom files for bankruptcy protection
 * August 2002 U.S. Airways filed for bankruptcy.
 * December 2002 United Airlines filed for bankruptcy protection.
 * July 2003 The US recession ended in November 2001, according to NBER.
 * April 2004 International oil prices hit a 3-1/2 year high.
 * December 2005 CPI posts biggest drop since 1949.
 * January 2006 Federal funds rate raised from 4.25 percent to 4.50 percent.
 * January 2006 Alan Greenspan steps down after more than 18 years as chairman of the Federal Reserve.
 * January 2006 Ben Bernanke was sworn in as the new chairman of the Federal Reserve.
 * February 2007 Rising default rates hitting subprime mortgage industry hard.
 * August 2007 Federal Reserve puts $38 billion into banking system
 * December 2007 Banks, Mortgage lender, real estate continues to collapse and devalue.
 * January 2008- Global stock markets plunge.
 * April 2008- Retail chains filing for bankruptcy
 * April 2008- Rise in consumer, energy and food prices.
 * May-June 2008-Gasoline prices are at an all time high.
 * September 2008 Lehman Brothers files for bankruptcy, Federal Reserve loans AIG $85 billion
 * September 2008 U.S. Govt takes over Fannie Mae & Freddie Mac
 * October- A bad week for the stock market, Fed lends banks $900 billion in short term loans and 1.3 trillion to Co's
 * October 2008 Emergency Economic Stabilization Act becomes law (bailout)
 * December 2008 Bailout of automotive industry
 * December 2008- The federal govt approves plan to aid Citigroup.
 * Jan 2009-present-Continued Unemployment,Budget cuts, fall in house prices,retailers filing for bankruptcy,increase in crimes
 * February 2009- The $787 billion economic stimulus package was signed into law by President Obama
 * February 2009- The "American Recovery and Reinvestment Act of 2009" includes a variety of spending measures and tax cuts intended to promote economic recovery.
 * February-2009 President Obama introduces the Homeowner Affordability Refinance Program plan.
 * March 2009- The Public-Private Investment program is introduced by the U.S.Treasury Secreatry.
 * April-June 2009-Chrysler and General Motor files for bankruptcy.
 * June-October 2009 Both CA and PA state budgets struggle to be passed

A whole lot of economic and social issues have had a great impact on schools/universities, businesses, and global markets and continue to impact the economy and the businesses. The tax base that school districts rely on for their budget is stagnant or depressed in many areas. Partnerships with the public and private sector are beginning to become increasingly relevant as shortages in funding impact the school system. In PA, school districts must go to referendum to raise the index higher than the community allows. No community is going to approve that in these economic times. For universities, grant money and trust money is questionable because of the investments that feed those funding sources.


 * Working Strategy for Schools**
 * Partnering up with non-profits like World Vision in order to get donated school supplies and materials.
 * Exploring alternatives to shutting down schools, e.g., Temporary increase in class sizes/ Temporary reduction in the length of school day/year instead of eliminating classes.
 * Fundraising Activities e.g. magazine sales, car washes, candy and cookie sales, concerts, auctions.
 * Scheduling online classes
 * Usage of technology that will enable students to submit homework online in order to curtail paper and workbook costs.
 * Partnering up with local businesses wherein the schools have a contract with local businesses to publish the logo of the local business on their student books in-return for financial backing from local businesses in the form of donations and funds.
 * Collaboration with schools that have a sustainable model program.


 * Troops to Teachers Program-A program that was started by Congress in 1994 and currenty undergoing expansion**
 * In 2008 and 2009 Congress appropriated $14 million to the program on a yearly basis.
 * Congress has spent over $134 million on the program since 2002.
 * A new bill has been authorized for as much as $50 million a year for the program.
 * The program offers retired military troops an education incentive of upto $5000 and $10,000 bonus if they agree to commit atleast 3 years to teaching childern in inner city schools i.e., low income students
 * The program is designed to help military personnel obtain employment after they retire and it helps schools get qualified teachers for low-income students. It also gives an opportunity to military personnel to serve their country a second time.


 * Working Strategy for Universities**
 * Universities in the United States could collaborate with universities abroad in order to gain recognition wherein students get the opportunity to not only study in their home country but also get exposure to the education system in other countries.
 * Building global and domestic partnerships with businesses,non-profits, NGO's and other entities to attract donors.
 * Designing educational programs to meet the needs of senior level business professionals for example CSUS offers the Executive MBA program which is designed for Managers and Top executives. The School of Business-Executive MBA program also includes international field trips as part of their curriculum.
 * Setting up programs and services to recongnize successful alumni contributions to the growth and development of the region and also encourage alumni to give back to the school by setting up scholarship funds for lower-income students.


 * Working Strategy for Corporations/Businesses/Organizations.**
 * Product/Process outsourcing of work to locations where it is cost effective in terms of labor and resources.
 * Conducting research on emerging markets domestically and globally
 * Instituting furlough days, pay cuts,and salary concessions instead of laying off workers
 * Reducing executive and senior level employee compensation packages e.g, bonuses, travel incentives, luxurious vacations.

To build leadership capacity, please refer to the Tools subpage


 * Weblinks**
 * Overview of the U.S. Economy: Perspective from the BEA Accounts-http://www.bea.gov/newsreleases/glance.htm
 * Our Money, Our schools: Top Ten findings of our research team-http://publicagenda.org/pages/our-money-our-schools-top-ten-findings-our-research-team