Editor's
note: Contributing Columnist, Steve Nicklas, expresses his views and
insights on various topics of local interest in Steve's Marketplace
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Like gazers at a space shuttle's launch, things are looking up in many aspects of our lives -- locally, statewide, and nationally.
Granted, it is difficult for things to be looking much worse than they did a year ago. When you are standing in a hole, the only way to look is up. And we were in a chasm of Grand Canyon proportions a year ago.
The financial markets were unraveling like a frayed rope on a shrimp boat. Now it looks like we were approaching a depression of some sorts then. The global economy sputtered; unemployment soared within our borders; and countries such as Iceland faced economic collapse.
Now, the financial markets are normalizing; the global economy is attempting to rebound; and bailouts and rescue packages have saved companies, countries, and individuals from ruin. (There will be an unpaid tab remaining from a lot of this mess, but we'll save that for another article.)
While the economy in Nassau County is still sluggish, some new developments – particularly from the government sector – appear to be positive in nature.
Consider this:
-- After years of being stuck in the mud (literally), the Fernandina Beach city marina has taken a new direction. City officials have expeditiously moved forward to select a professional management company to operate the marina. This arrangement has a boatload of potential.
--The longstanding feud between the city and the airport operator is nearing a conclusion. Millions of dollars in legal fees later, there really is no winner. Just a lot of haggling. But at least it’s nearly over.
-- Nassau County officials opted to lower property tax rates. A low-tax environment is much more conducive to economic growth than is one with higher taxes. We need to attract high-paying industry and small businesses to our county – and lower taxes are a vital part of that equation.
-- County officials have also decided to use impact fees collected from prior development here to improve roads. The other option was to return the fees to the developers who paid them in the first place.
Good decisions are critical right now by our county and city officials. During economic downturns, decisions are more scrutinized and magnified in their importance. A bad decision at the wrong time would be devastating right now.
This is not to say our county is hanging on a precipice like the U.S. economy apparently was doing a year ago. However, just as the financial markets needed help from government officials to be pulled out of a quagmire, our local economy can use a helping hand.
A rejuvenated marina can help revive downtown Fernandina Beach. An unencumbered city airport can also become a source of revenues while supporting commerce here.
And improving the local infrastructure while removing the onus from businesses through tax cuts can be fruitful in its returns. On a national level, the U.S. stock market has rebounded significantly off its lows, and, as a leading indicator, points to a rebounding economy.
Only then, when the economy begins to rebound, will employers begin to rehire workers, helping mitigate the unemployment rate. The business cycle will begin to regain its balance, as banks resume normal lending and consumers begin to spend again.
After all, a little bit of "up" is better than a lot of "down."
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(Steve Nicklas is a financial advisor who lives on Amelia Island. He can be reached at 904-753-0236 or send eMail to: thenicklasteam2@msn.com.)