Hartford Business Journal

34 HARTFORDBUSINESS.COM | May 9, 2022 Other Voices In-person volunteerism returns with excitement, partnership and opportunity By Joseph Gianni & Patrick Doyle N o doubt our community has experienced some challenges over the past two years. Local nonprofits and charitable organizations throughout Connecticut were particularly impacted as they faced increased demand for services while experiencing a drastic reduction of in-person volunteer support, mainly due to safety concerns during the pandemic. There is evidence that monetary giving was up in 2021. However, the percentage of Americans who reported volunteering time trended downward, continuing an unfortunate direction over the last few years that was magnified by the limited number of in-person activities. KNOX — an organization that establishes and maintains community gardens, improves the environment, and provides job skills and development in green jobs industries — like many local nonprofits, relies on volunteers. During the pandemic, KNOX focused on cultivating and distributing fresh food for those in need — with volunteers helping to grow, harvest and deliver produce to local food pantries. Navigating the heightened needs of the Hartford community was even more challenging without the usual number of volunteers. In its effort to address locally- relevant issues, Bank of America actively encourages employee volunteerism by offering paid weekly time off to give back to Connecticut communities. Despite the challenges of the pandemic, Bank of America employees throughout Greater Hartford still managed to volunteer over 25,000 hours since 2020. Many private sector companies, like Bank of America, continue to find safe ways to contribute and give back in Hartford. One example is mobilizing employee network groups to volunteer in person at an Earth Day clean up with KNOX. A few other opportunities this spring include hosting financial literacy workshop classes with Junior Achievement of Hartford and building homes with Habitat for Humanity. As society begins reopening safely, this spring is an exciting time for community members to renew their commitment to volunteerism through on-site and in-person opportunities for the many nonprofits making a positive impact in Greater Hartford. As we discover our new normal and start to enjoy more of the in-person activities we missed over the last two years, we're excited to drive volunteer engagement through both in-person and virtual opportunities. Forging partnerships between nongovernmental organizations and the public and private sectors creates an opportunity to connect employees to meaningful volunteerism, while embracing the community's passion for lending a helping hand. This spring and beyond, there are some great projects to support local nonprofits and charitable organizations, including distributing food around the state at Connecticut Foodshare's mobile sites; honoring our veterans and military by volunteering with Homes for the Brave; and donating new or gently-used shoes at DSW locations with Souls4Shoes. The early days of the pandemic were full of heartwarming stories about people banding together to help their community, and we must carry that giving spirit forward, not just in times of crisis. We encourage everyone to support a cause they are passionate about to raise awareness, foster connectivity and advocate for community engagement. We can make a difference by connecting our passion with purpose to ensure a brighter future for all. Joseph Gianni is the president of Bank of America Greater Hartford and Patrick Doyle is the executive director of nonprofit KNOX. Joseph Gianni Patrick Doyle CT economist: History shows recessions follow inflation; businesses should plan accordingly By Fred McKinney D uring my time in the Carter administration White House on the Council of Economic Advisers (CEA), the U.S. was coming out of the Nixon-era wage and price controls. President Nixon put in these controls in 1971 primarily for political reasons as opposed to reasons based on sound economic theory. The Arab-Israeli War in 1973 and subsequent oil embargo by the OPEC countries in response to the United States support for Israel led to gas lines and high energy and other prices throughout the economy. The 1974- 75 recession had been one of the deepest economic declines since the Great Depression. Nixon resigned in August 1974. Gerald Ford became president and ran unsuccessfully for president in 1976. Jimmy Carter became president in 1977. I joined the CEA in 1978 under the leadership of Yale Nobel Laureate William Nordhaus and Washington icon Charles Schultze. Schultze had served as President Lyndon Johnson's budget director. There were several policies newly- elected President Carter had agreed to. One of the most important was the gradual elimination of wage and price controls. Carter appointed Cornell University's Alfred Kahn to become chairman of the Council on Wage and Price Stability, an organization created by President Ford. During wage and price controls, no firm was allowed to raise its prices without the federal government's permission. Who said the Republican Party has always been the party of free markets? Additionally, no union or group of workers were permitted to increase their wages without federal permission. Wage and price controls were a massive failure and a bureaucratic nightmare. Prices are market signals. When you prevent them from moving, you distort economic incentives and the allocation of resources. Wage and price controls caused shortages for some goods and services and surpluses for others. Not surprisingly, these interventions also led to the creation of black markets and other actions to compensate for the inability to raise prices, wages or interest rates. Do you remember when banks gave out toasters instead of higher interest rates on your savings? The Carter administration eliminated the wage and price controls by 1978. By 1980, inflation had risen 18% — it was not surprising given that companies and workers had been denied price and wage increases, respectively, for years. They were making up for lost profits and income. Carter turned to monetary policy and the Federal Reserve board to fight record-high inflation. Paul Volker was appointed Fed chair in 1979 with the expressed goal of taming inflation. He did this by dramatically increasing interest rates. By the time I purchased my first home in Stamford, Connecticut in 1983, my mortgage rate was 14 percent! Volker succeeded on inflation, but Carter failed to get reelected in 1980. Americans had enough of paying more for goods and services and the recession that started in 1980. Looking back with 20-20 hindsight, Carter hired Volker too late. Had Volker been hired earlier, and the subsequent recession also occurred earlier in the Carter term, the notoriously short memory of American voters could have helped him beat Ronald Reagan in 1980. I go through this history because it is important to understand what is going on in today's economy. There is no way that President Biden will consider wage and price controls. We have all learned that lesson — I hope. But the tool that has worked and will most likely work again to curb inflation is the Federal Reserve policy to raise interest rates and push the economy into recession. The Fed does not want a recession. It would prefer what is known as a "soft landing." But a look at economic history since 1970 shows that increases in prices have been followed by economic recessions. Each of the recessions in 1970, 1974-75, 1980 and 2001 were immediately preceded by inflationary spikes. The Great Recession of 2008-2010 was a different affair. But even the Great Recession was preceded by unrealistically high and increasing housing prices. And in late April it was announced that U.S. GDP in the first quarter declined. It takes two consecutive declines in real GDP to make a recession. Seeing this history leads me to conclude that we are headed for a recession caused by the Federal Reserve's response to inflation. This current episode is different in many respects from previous periods; we have a global pandemic, war in Europe, and supply chain disruptions caused by both shocks. There is no doubt that the Fed can get inflation under control, but it will come with a price. Consumers, firms, banks, and businesses will all be facing a new economic reality if the Fed successfully controls inflation, but this will initiate our next recession. You should plan accordingly. Fred McKinney is the co-founder of BJM Solutions, an economic consulting firm. He is emeritus director of the People's United Center for Innovation & Entrepreneurship at Quinnipiac University. Fred McKinney

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