There are four segments in the Massachusetts Economy, and last month all four areas show growth for the first time in years:

The four areas are: (In the order of Economic Impact)

1. Health Care
2. Education
3. High Tech
4. Tourism

High Tech was one of the areas of the economy that hasn't shown strong growth in a while.

Alan Greenspan and his colleagues on the Federal Open Market Committee will be meeting tomorrow to talk about raising the short term rate about a quarter of point. However, this is a very bad idea:

1. Oil prices are close to hitting $45 a barrel and could cause another spike in gas prices. An increase in gas prices has a negative effect on businesses, and many will probably hold off spending in anticipation of raising gas prices.
2. Unemployment numbers are still not great. The last two unemployment reports have fallen short of analyses expectations.
3. Retail sales in June were below analyses expectations.

The Federal Open Market Committee should just keep the rates as they are and issue a warning that rates may increase in September. Remember its always easy to cool off a hot economy, but it takes a while to heat up a cool economy.

This mornings AP Labor Wire, contained this statement:

The quarter-point increase was the first change since the funds rate was cut to a 46-year low of 1 percent in June 2003.

That had marked the 13th Fed rate cut in a series that began back in January 2001 as the central bank battled to jump-start an economy staggered by a series of blows, from a plunging stock market and the 2001 recession to terrorist attacks and two wars.

So what this is saying is that this is the first time in George Bush's administration that the Feds increased their rates. Why did George Bush want to Allen Greenspan to stay on?

There's a report out this morning that predicts that the inflation rate in the United States will be higher than originally reported.

"Rising prices of energy and other industrial commodities are contributing to the higher inflation, but so too is robust growth," said the group's president, Duncan Meldrum, chief economist at Air Products and Chemicals Inc.

I believe that the rapid increase of energy cost (Oil) is the main factor in the inflation rate. This weekend I saw that the price for gas at the pump at Meeting House Pond in Orleans cost $2.99 a gallon. This high gas price not only effect the weekend boater, but also the day to day New England Fisherman.

George W. Bush will be on the air tonight addressing the American Public in a prime time speech, not on the sudden fuel surcharge, but on the situation in Iraq.

I found a pretty good article about "Corporate citizenship." A Corporate citizenship is a CFO, CEO that opts not to have a layoff or downsizing because they care for their employees.

The article explains why layoffs are an essential component to a free economy and the roll a government plays in the unemployment.

I would highly recommend reading this article:
Corporate Chiefs Should Refuse Clinton