The Edge for October 2022
The economy, inflation, the prospect of a recession - and how they impact the 2022 midterm elections - were topics discussed by four New Jersey business reporters during an Oct. 27 reporters’ forum hosted by the New Jersey Chamber of Commerce.
The reporters also discussed the business climate in New Jersey, the continuing effects of the pandemic and whether hybrid work is here to stay.
See below to read more about what was discussed at the forum moderated by Tom Bergeron, Owner and Editor of ROI-NJ.
Midterm Elections and Inflation
Stacie Sherman
Senior Editor - Americas News Desk
Bloomberg NewsOne of the nation’s closest watched elections is New Jersey’s 3rd District contest between Rep. Tom Malinowski (D) and Republican challenger Tom Kean Jr. It could foreshadow which party takes control of the U.S. House come January.
The redrawn district and an anti-Biden wave based on the fragile economy may leave Democratic incumbent Malinowski vulnerable, said Stacie Sherman, Senior Editor - Americas News Desk at Bloomberg News.
But it can be hard to get a feel for these elections, added Bergeron, “The big issues of abortion and inflation are the kind of issues that make people cross political lines,” he said.
“It’s not surprising that the economy has moved to the forefront,” said Rhonda Schaffler, Business Correspondent at NJ Spotlight News. “Inflation affects people on a daily basis.”
Is the U.S. Already in a Recession?
Rhonda Schaffler
Business Correspondent
NJ Spotlight News“It’s hard to say that we are in a recession when job growth remains healthy, but a lot of people feel like we are either in a recession or we will be soon,” Schaffler said. “A lot of businesses will tell you the economy is still not where they want it to be with rising costs, a supply crisis and customers who are balking at spending.”
But a recession can be more of a state of mind, added Sherman. “Does it matter whether or not we are in a recession?” she said. “People go to the grocery store and see eggs for $7. That feels like a recession.”
How Will N.J. Use Its Remaining Federal Pandemic Aid?
Daniel Munoz
Staff Writer - Business
The (Bergen) Record and northjersey.com
“The business community believes the best approach for the state’s American Rescue Plan money is grants and support for the business community,” said Daniel Munoz, Business Reporter for The (Bergen) Record and northjersey.com.
“The Murphy administration would say it has distributed a total of $1 billion to businesses in New Jersey during the pandemic,” Bergeron said. “But many of the individual grants are modest, and there is a fair argument to be made that the increases in the state’s unemployment insurance payroll tax on employers reduces gains from grants.”
“Unemployment insurance tax relief is a way to lower cost for businesses and it’s still on the table,” Schaffler said. “And why not? American Rescue Plan money is still there to be given out, and other states have successfully used it for unemployment insurance relief.”
“I understand the business community’s argument,” Munoz said. “This is not the time that businesses need a tax increase.”
Attracting Companies to New Jersey
Tom Bergeron
Owner, Editor and Chief Content Officer
ROI-NJBergeron wondered aloud whether the Murphy administration’s progressive agenda, such as reproductive rights, bolsters the state’s business attraction and retention efforts.
“It’s hard to say,” Munoz said. “Businesses walk on eggshells when it comes to these issues. But it is an area the state can continue to trump.”
“It makes for a great talking point, and it makes sense,” Sherman said, “But I don’t see companies relocating to New Jersey for those reasons.”
Is Hybrid Work Here to Stay?
“Companies lately seem to be stepping up the pressure to get people back into the office, but it’s not working,” Sherman added. “Office occupancy remains under 50% and people want flexibility. Companies have to be open-minded when allowing people who work from home when they need to, and the need is there. There are working moms. People with disabilities. And work-life balance is a big issue.”
There is a less-discussed benefit of working from home: Workers don’t have to deal with colleagues that they are uncomfortable with, Bergeron said. “Being at home to just do their jobs is a relief for some people,” Bergeron said.
Many workers want to stay out of “office politics and office moments that are uncomfortable,” Schaffler added. “There has been a new focus on how people are treated in the office. There has been a shift. Workers have some power and they are saying we want to work from home, and companies want to keep them.”
Working from Home Has its Complications
“It’s easy to work from home when you all know each other,” Bergeron said. “But when you hire someone new, how does that work?”
Further, Bergeron said, “What happens when someone who is in the office is promoted over someone who is not in the office. Employees have to figure it out and employers have to figure it out,” Bergeron said.
Lo and behold, the younger generations may have already figured it out, Munoz said. “There is the Millennial and Gen Z way of climbing the ladder,” he said, “by moving on to other companies.”
View replay of the NJCC Reporters Forum
Election Day is Tuesday, Nov. 8
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