From: shaver@convex.com (Dave Shaver)
Subject: Re: The end of media generated recession is close.
Date: Mon, 5 Oct 1992 17:45:08 GMT
Organization: CONVEX Computer Corp, MPP System Software, Richardson, TX
X-Disclaimer: This message was written by a user at CONVEX Computer
              Corp. The opinions expressed are those of the user and
              not necessarily those of CONVEX.

In <sehari.718303505@vincent1.iastate.edu> sehari@iastate.edu (Babak Sehari) writes:
>I do not see it that way! Here in Iowa, we have a boom! Average price of
>houses gone up %40 since 4 years ago, when I came in here. The unemployment
>rate is %3.0.  Maybe some regions, specially those places with large 
>military industry are in adjustment phase, after the end of the cold war?
>Or may be I bring the good luck to a region?! -:)

Since I grew up in Ames, Iowa---the town that Babak has called home for
the past four years---I feel I should make a few comments about the
"boom" in Iowa.  Please don't take this as inflammatory towards either
Iowa or Iowa State University; I'm just trying to post what I feel is a
more realistic view of what's going on in Iowa.

First, don't use home prices in Ames as an indicator for home prices in
either Iowa or the Midwest.  Since it is a university town, the prices
are highly inflated.  A better indicator of home prices and percent
gain or loss is someplace like Boone or Nevada---both about 10 miles
away from Ames.

Second, although prices have gone up a bit in the last few years
(certainly not 40%), any gain is probably offsetting losses from
previous years.  My mother still lives in Ames and the value of her
home is still not as high as it was five years ago.  Keep in mind that
eight to ten years ago while the rest of the country was enjoying "good
times," Iowa was in a major recession.  This was caused by an economy
based primarily on farming during a time when farming was not
particularly profitable.

Finally, the Iowa economy is still in the doldrums.  I'm not sure how
anyone who attends ISU (where Babak is posting from) cannot see the
impacts.  As an example, for the last ten years tuition has been rising
faster than inflation.  Also, I don't have the current statistics, but
I bet that *percentage wise* there are more "temporary" employees
working for ISU now than ten years ago.  This is due to the need to
reduce permanent "line item" employees.  Temporary employees are also
easier to let go if needed.  When a person vacates a position, the
administration attempts to hold the job empty for as long as possible
for "salary savings."  When they are ready to reopen the job, they
often try to lower the pay grade to save money.  Also, there is now a
small fraction of building custodians compared to the number that there
used to be---many where cut to save money.  Employees must now empty
their own trash cans.

I lived in Iowa for 25 years and worked for ISU for five years.  Maybe
things have changed drastically since I left two years ago, but I don't
think so.  My mother, who has worked at ISU for 25 years, was moved
into a temporary position and now fears for her job twice a year during
the budget cycle.  I would not call this a "boom."  I would admit,
however, that things are looking up when compared with two-five years
ago.

/\  Dave Shaver
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