50-Plus: The Economic Activity of America’s Elders

A new study examining the considerable economic impact generated by Americans age 50 and older in 2018 that was completed by AARP and The Economist Intelligence Unit was recently covered by Forbes. The article highlights the illuminating key findings from the comprehensive analysis, as well as methods for businesses to adopt in order to better integrate this diverse community.

Researchers used the REMI model to project the Longevity Economy® Outlook, which stands as “a compelling call to action for business leaders, legislators and anyone who wants to better understand and serve this growing demographic.”

This assessment of the 50-plus population determined their share of the total U.S. gross domestic product, wages, salaries, and overall employment before compiling the results into numerous charts and graphs that further illustrate the expected impacts on the national economy.

Dr. Debra Whitman, AARP Executive Vice President and Chief Public Policy Officer, was quoted in the Forbes article as she discussed the necessary industry changes that must be made to positively affect the 50-plus and business communities.

“We find that marketplaces are not looking at older consumers or providing the products and services they need. This is too big to miss, and if businesses are not paying attention, they won’t be successful in the future economy.”

You can access the Forbes article by clicking here.

You can also access the full PDF of “The Longevity Economy® Outlook,” the report completed by AARP and the Economist Intelligence Unit by clicking here.

Building Up Energy Efficiency: Benefits of Section 179D

REMI’s report on the impact of adjusting the Section 179D deduction, “Analysis of Proposals to Enhance and Extend the Section 179D Energy Efficient Commercial Buildings Tax Deduction,” was featured in a recent article published by Bloomberg Tax exploring the positive outcomes of renewing the incentive.

The article outlines the history and intent of Section 179D as it highlights the financial and energy savings resulting from the deduction’s implementation. REMI’s analysis of the reduction in energy consumption among both the private and public sectors caused by the energy efficient commercial buildings deduction was then used to display the total anticipated yearly savings for both the private sector and the government.

Section 179D has been renewed several times since it first appeared in legislation back in 2005, and the most recent extension in December 2019 lends further evidence to the overall effectiveness of the deduction.

You can access the Bloomberg Tax article by clicking here.

You can also access the full PDF of “Analysis of Proposals to Enhance and Extend the Section 179D Energy Efficient Commercial Buildings Tax Deduction” by clicking here.

The 2019 REMI Annual Users’ Conference “Populism, Policy Analysis, and the Economy” October 16-18, 2019 Santa Fe, New Mexico

This year’s REMI Annual Users’ Conference, “Populism, Policy Analysis and the Economy,” was a thoroughly comprehensive and successful event. We would like to thank everyone who participated in our conference and we hope everyone enjoyed their time in beautiful Santa Fe!

Our event featured an impressive assortment of guest presenters from all over the country providing informative discussions on a variety of timely public policy topics. We had a great collection of panels and thought-provoking Q&A sessions.

We also awarded three groups of authors with the George I. Treyz Award for Excellence in Economic and Demographic Analysis for their detailed research and careful analysis. The winners were as follows:

Gold

Earnings, EITC, and Employment Responses to a $15 Minimum Wage: Will Low-Income Workers Be Better Off?

Fahad Fahimullah, Yi Geng, Bradley Hardy, Daniel Muhammad, & Jeffrey Wilkins

Silver

An Analysis of the Economic Effects of the HayWired Scenario Using the ABAG REMI Model

Cynthia Kroll, Bobby Lu, Aksel Olsen, & Anne Wein

Bronze

Housing Underproduction in the U.S.: Economic, Fiscal, and Environmental Impacts of Enabling Transit-Oriented Accessible Growth to Address America’s Housing Affordability Challenge

Madeline Baron, Marley Buchman, Mike Kingsella, Randall Pozdena, & Michael Wilkerson

Pete Walley, who recently retired from his position as Director of Long-Range Economic Development Planning at the Mississippi Institutions of Higher Learning, was also awarded the George A. Fulton Lifetime Achievement Award for Excellence in Economic and Demographic Analysis. It was an honor to present this award to Mr. Walley for his numerous contributions to the state of Mississippi and its continued development.

Santa Fe was a wonderful host city for our 2019 REMI Users’ Conference as attendees were able to experience the local Pueblo architecture and enjoy an immersive group outing at Meow Wolf.

The location for the 2020 REMI Users’ Conference was voted on by attendees and they selected Bozeman, Montana. However, due to expensive flights and a lack of nearby venues that can accommodate over 50 attendees, we have chosen the option with the second-most votes, St. Petersburg, Florida, as next year’s host city.

We will be providing more details as we get closer to October 2020. We hope to see you in St. Petersburg!

Hector Vielma, Ph.D., Illinois Department of Revenue

Sharon Ju, Ph.D., Houston-Galveston Area Council

Jacob Linger, REMI / George Fulton, Ph.D., University of Michigan / Scott Nystrom, FTI Consulting

Jeff Hardcastle, Nevada Department of Taxation

Yi Geng, Ph.D., D.C. Office of the Chief Financial Officer

George I. Treyz Award (Bronze) – ECONorthwest

George I. Treyz Award (Silver) – Association of Bay Area Governments

George I. Treyz Award (Gold) – D.C. Office of the Chief Financial Officer

George A. Fulton Lifetime Achievement Award – Pete Walley

The High Cost of Lost Wages: Current State of the UAW-GM Strike

The Center for Automotive Research (CAR) recently used the REMI model to estimate the total financial burden on the national economy and individual states related to the United Auto Workers-General Motors strike currently underway throughout the country. Industry Week covered CAR’s analysis in an article detailing the fiscal challenges associated with a prolonged automaker strike.

The article describes the state-by-state impacts of GM’s labor dispute, in addition to detailing the methodologies implemented by CAR’s analysts. They also identified which states would be most affected financially as a result of the UAW-GM strike in terms of weekly compensation, social insurance tax collections, and personal income taxes.

The overall estimates provided by CAR found that the labor stoppage initiates an $857 million decrease in national weekly worker compensation for each week that it continues. This loss in compensation impacts payments to government social insurance programs and personal income taxes to the amount of $108 million in reductions per week of the strike.

You can access the article published by Industry Week by clicking here.

The costs of the UAW-GM strike combined with the plant shutdowns that occurred less than a year ago have created significant financial pressure for the auto manufacturer. Dynamic economic analysis can help evaluate the total impact of these events, while identifying the most beneficial strategies for restoring normal operations.

REMI Senior Economist Peter Evangelakis, Ph.D. analyzed the repercussions of the GM plant shutdowns during his webinar, “GM Plant Shutdowns: Fiscal and Economic Aftermath,” which you can access by clicking here.

Medicare 4 All? Healthcare’s Effect on Regional Economies

Over the past few months, several Democratic debates have featured discussions regarding healthcare in this country. Adding a public Medicare option, expanding tax credit availability, and abolishing private health insurance in favor of a single-payer plan have all been explored this year.

The country has reached a critical point in healthcare and we are running out of time to determine the future of this vital industry. It is important to perform rigorous impact analysis using dynamic economic modeling to evaluate all proposals, no matter what the policy, and REMI has been at the forefront of this type of economic analysis.

Senior Economist Peter Evangelakis, Ph.D. will be in Washington, D.C. on October 31st for our monthly policy luncheon as he presents “The Economics of Universal Healthcare: Case Study of Vermont Public Options,” which takes a more detailed look into these options and proposals. His presentation identifies the key findings discovered in an impact analysis conducted by Harvard University, Policy Integrity, LLC, and the Massachusetts Institute of Technology examining the universal healthcare goals set by Vermont’s Act 128.

You can register for “The Economics of Universal Healthcare: Case Study of Vermont Public Options,” our upcoming Washington, D.C. policy luncheon on October 31st, by clicking here.

You can also access the entire report on Act 128 by clicking here.

Here at REMI, we recognize the importance of this policy decision on the majority of Americans and want to help advance the conversation through meaningful economic impact analysis.