Articles

VIEWPOINT: Avoiding Chinese ‘fifth-shipment’ follies

The recent announcement by the Indianapolis company Gilchrist and Soames that it would recall its privately branded toothpaste because of concerns regarding its diethylene glycol content is a small part of a larger global concern about the quality standards of goods made in China. The same week, Mattel recalled more than 9.5 million U.S. toys over concerns about the use of lead paint. Many Indiana firms rely on a steady stream of qualified products from China, so now seems a…

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Commentary: Get the smoke out of our eyes

Andy Jacobs Jr. wrote in an IBJ column that smoking is an expensive and painful way to commit suicide. He’s right. But he didn’t go far enough. Breathing secondhand smoke at one’s place of employment is also an expensive and painful way to go. The world is beginning to read the smoke signals. Many countries have passed laws to protect their work force from secondhand smoke. Today, you cannot smoke even in an Irish pub. In our country, 22 states…

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EYE ON THE PIE: Give tax relief to those who truly need it

No topic brings me more mail than property taxes. Some of this mail is silly, some is tragic. Many writers are concerned that they or their neighbors will lose their homes because of propertytax increases. This is a serious, legitimate concern. However, it is not a reason to abolish property taxes. Those who are hard-pressed to pay their property taxes are not different from those who have problems paying utility bills, medical bills, and the costs of other necessities. These…

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VIEWPOINT: Why shouldn’t churches pay taxes?

Though it probably should not have been, a recent headline in The Indianapolis Star-$2.7 billion in property untaxed in Marion County-was a bit of a stunner. And more so was an adjoining article revealing nearly half of that property to be owned by churches and religious institutions. In the article, the Rev. Kent Millard, senior pastor at St. Luke’s United Methodist Church, invoked the separation of church and state as justification for St. Luke’s quarter-million-dollar annual tax dodge. And I’m…

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Township wrestles with incorporation: As Greenwood, Bargersville annex commercial corridors, rest of township declines

White River Township in northwest Johnson County is dotted with an increasing number of high-priced homes and anchored by one of the area’s strongest school districts. But the area, known as Center Grove, also is marked by crumbling roads, poor drainage and an anemic parks system. To preserve its strengths and shore up its growing weaknesses, some in the area think White River Township needs to incorporate into its own city. The township of more than 40,000 residents faces the…

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EYE ON THE PIE: Time to make government accountable

The biggest change the Kernan-Shepard commission could recommend for improving local government would be to focus responsibility. Some folks want to consolidate government horizontally; that means combining units of the same type. It might take the form of consolidating school corporations or bringing the number of library districts down from 238 to some smaller number. (It could mean reducing the number of counties from 92 to a more realistic number, but I should not try to make you laugh.) Many…

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BRIAN WILLIAMS: Indiana needs to get energy-wise

As the 14th-mostpopulous state in the union, Indiana generates a gross state product that is 16th-largest of the 50 states. Unfortunately, despite significant investments in equipment and processes by manufacturers and public-policy efforts to encourage the attraction and growth of knowledgeand technology-focused industries, our economy remains energy-inefficient. In 2003, Indiana was the country’s sixthlargest consumer of energy per capita, according to the Indiana Energy Report. Ninety-seven percent of Indiana’s electricity is generated by coal. Indiana is the fifthlargest emitter of…

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ECONOMIC ANALYSIS Mike Hicks: It’s time for a little perspective on home foreclosures

A big financial crisis spreads the notion that the interests of Wall Street differ from the interests of Main Street. The “liquidity crisis” of the past few weeks, with its difficult jargon and complex financial instruments, is a prime example. Unfortunately, the notion that the tumult represents a failure of markets is exactly the wrong lesson to take away from this experience. In a nutshell, here’s why. In the past few years, mortgage lenders-ranging from the George Baileytype savings and…

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INVESTING: Time to protect assets; more turmoil lies ahead

Heroes are for sporting events and battlefields, not investing. With some of the damage repaired from the early August rout, it is a good time to raise a little cash and wait a few weeks. There certainly will be no shortage of things to watch while you wait. It is easy to make either the bull or bear case right now. The technical damage suffered by the market leading up to the July high was more short-term in nature, not…

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Increasing demand for land surveyors sparks changes: Despite some criticism, Purdue University moves program into different department to attract more students

Purdue University is mapping out a controversial strategy to produce more land surveyors amid growing demand for graduates entering the profession. The number of Purdue students interested in pursuing a surveying career has dwindled to just a dozen out of roughly 500 enrolled in the university’s School of Civil Engineering. M. Katherine Banks, head of the school, attributes the dearth to a lack of visibility the surveying program endures tucked within the larger department. “We need a fresh start,” she…

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EYE ON THE PIE: Should we consolidate libraries?

At last, we have a commission working to see if we can improve government in Indiana through reorganization. Former Gov. Joe Kernan and Supreme Court Justice Randy Shepard are leading the effort. Some of us are concerned that the commission has been established to find ways not to improve government services, but to cut local property taxes. The two goals might not work in the same direction. Public libraries are often cited as ripe for consolidation. There are 238 of…

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Commentary: Is this any way to run a government?

As someone who writes and pontificates about the events of the day, summer is usually my slow season. I have to work hard to find things to write and talk about for public consumption. However, this summer has been a whole different matter. We have all been taken aback by the tax protests and subsequent government actions to mitigate the damage. But that wasn’t the big story that caught my attention. The story that stuck in my craw was the…

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VOICES FROM THE INDUSTRY: Indiana needs to develop more technology workers

Far from its older perception of a backoffice function, information technology today is cutting edge and business savvy, driving innovation in virtually every industrial sector. As an industry, IT in Indiana has seen significant growth in the past few years. In fact, the state’s tech nology sector has grown so quickly that the industry faces a new challenge-employers are experiencing explosive growth and cannot find enough qualified individuals to fill these new positions. As documented by the Indiana Department of…

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EYE ON THE PIE: Should fees replace property taxes?

So you want to be a boxer in Indiana? There’s a $10 fee to be paid every other year for the privilege. That’s a lot lower than the twoyear fee of $100 paid by architects. A driver’s license is good for five years and costs just $19.50. Whereas your aircraft bears a $10 annual registration fee, your passenger car has a $20.75 annual state fee. If you want to support a special cause, the Bureau of Motor Vehicles charges a…

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ECONOMIC ANALYSIS: How Indiana’s industrial economy looks to a newcomer

This week marks the start of my tenure as director of Ball State University’s Bureau of Business Research. I take over from Pat Barkey, whose thoughts on the state’s economy have long graced this column. His will be hard shoes to fill. I have read over many of Pat’s old columns, and the one thing that stands out is how much we agree on the issues facing the state-and their solutions. Contrary to the old stereotypes, hard-headed economists usually come…

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Small biz tax bills rising, too: Extra expense narrows margins

Area homeowners weren’t the only ones to get a shock when they opened their 2007 tax bills. Some small-business owners also saw their bills skyrocket-putting a strain on entrepreneurs who often operate on razor-thin margins. “It’s catastrophic for some businesses,” said Kevin Hughes, state director for the National Federation of Independent Business’s Indiana chapter. Mike Hutson, owner of Westfield Lighting Co., certainly feels the pain. The bill on his commercial property-several acres and a 22,500-square-foot building-increased from $42,000 in 2006…

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ECONOMIC ANALYSIS: Parting thoughts on Indiana’s strengths, weaknesses

The nice thing about economics is that we never really figure anything out. That hasn’t stopped folks like me from writing about economics and papers like this one from printing what we have to say. As I often have said to those who have remarked on these writings, nature abhors a vacuum. Someone else will be filling that vacuum next week, because this is my last column-for Indiana readers, at least. I am happy to leave you in the capable…

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VIEWPOINT: Helping ex-offenders helps all of us

In the June 4 IBJ, Mickey Maurer wrote an insightful commentary on some of the difficulties faced by ex-offenders returning to their communities. An editorial in the July 9 issue called for ex-offender re-entry into the work force as an important next step for the city of Indianapolis. IBJ has focused on a critical issue, and has correctly identified several obstacles faced by returning offenders seeking to reintegrate into society-from housing to willing employers to the need for mentors. But…

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OneAmerica methodical in approach to new deals: Flush with capital, local insurer on the lookout for acquisitions

Don’t expect OneAmerica Financial Partners Inc.’s purchase of a $700 million annuity portfolio last month to be its last big-ticket buy. The Indianapolis-based insurance holding company says its executives and heads of its various product lines are constantly on the prowl for acquisitions. But don’t hold your breath for the company’s next deal. Its purchase of annuities from Iowa-based Transamerica Life Insurance Co., announced July 24, took two years to come together. So did its previous acquisition, the 2005 purchase…

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ECONOMIC ANALYSIS: State economy began year with an impressive spurt

The economy constantly is serving up complex puzzles for us to solve. Have energy prices peaked? How much longer will mortgage markets continue to bleed? How will the dollar’s decline affect the low prices for imported goods? These are complex issues, and some of us actually earn a living trying to sort them all out. But sometimes we need to step away and address the simpler questions-such as: How does the economy grow? Of course, some might say “not at…

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