(Host) Economists can look to the IBM layoffs of June 2002 to forecast how Monday’s announcement will impact the state’s economy. Banknorth economist Alan Day says the layoffs will short-term and long-term effects:
(Day) “The first thing would be the immediate effect on revenue collections at the state and local governments. We’re obviously going to have some downsizing in personal income totals. How quickly is that going to show up? And second, how is that going to influence other collections? I mean this is going to ripple through the economy. We all know that effect. So that’s the immediate situation I want to look at.”
(Host) Day says the long term lesson from these layoffs is that northwestern Vermont’s economy needs to be less dependent on big companies that are subject to intense global competition.