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W W W. M A I N E B I Z . B I Z 13 JA N UA R Y 1 1 , 2 0 1 6 policies that will improve Maine's competitiveness both in terms of attracting workers and businesses to the state and expanding those businesses already here, which includes continuing comprehensive tax reforms. Lawton: For Maine, the overwhelmingly biggest challenge is expanding the workforce. If we can't provide more jobs for young people — from Maine, from the rest of the country, from international migration — we will continue to suff er the inevitable consequences of demographic imbalance. ese are the inevitably rising costs of education deriving from the fi xed costs of existing programs and facilities and declining enrollment and the opposite eff ects on health care as the elderly population becomes a larger and larger portion of the entire population. Martin: e biggest challenges are those of attitude. We have to overcome the narrative that Maine's aging demographic severely constrains our economic pros- pects. We must also recognize that we've got a lot going for us and that the path forward is one that celebrates and builds on our spirit of innovation, entrepreneurship and hard work that already resides here, as well as on Maine's unique natural environment and quality of life. Will Maine ever resolve the challenge of available labor/workforce? Moody: Without signifi cant policy and cultural changes, the answer is simply "no." Not only is the labor force shrinking, but the growth in elderly health services is labor intensive. is means less labor to fuel the industries of the future which are already predisposed toward younger more dynamic areas of the country. With so much of Maine's popu- lation beyond their child-bearing years, there are only two options available to turn this situation around: 1) have larger families or 2) import thousands of young families. Yet, average household size continues to shrink and more people are moving out than are moving in. When Rust Belt states like Indiana and Michigan feel they need to enact right-to-work to remain competitive, Maine needs to listen. Reisman: Not with our current business and politi- cal climate. e answer, short of a time machine to go back and raise fertility rates, is immigration, but you need a pull factor to compete with other states or countries, and improve our attitudes towards capitalism and immigrants. Heck, we deride folks from Massachusetts, let alone Syria or Somalia. ose attitudes are not helpful. Rector: While Maine is faced with a very serious chal- lenge from the aging workforce, there are policies that could help turn the tide. e problem needs to be tack- led from multiple angles: encouraging older workers to stay engaged in the workforce as long as they want to and are able to; assisting as many people as pos- sible in fi nding jobs, including veterans, the long-term unemployed and people with disabilities; and attracting people to move into the state, especially young workers. Addressing issues like student loan debt burdens, the high cost of energy and tax reforms can make it easier for people already here to earn a living and for people living elsewhere to decide to move to Maine. Lawton: Yes. Businesses will increasingly come to see that voluntarily paying higher wages and direct- ing toward schools the same attention as they now direct toward their material supply chains will be the only way they can survive. When a resource becomes scarce, we inevitably come to treat it more carefully and learn how to use it more productively. Look at how much more productively we use all forms of energy today than we did in the 1970s. e same will be true of labor over the next several decades. Martin: We must remember that in the global context, Maine is not an outlier in terms of our aging popu- lation. Technological innovation, better pay, greater fl exibility and more family-friendly workplace policies have helped other countries like Germany (and many Maine businesses) overcome these challenges. Where we are an outlier is in the diversity of our population. e countries and states that are reversing the trend of an aging population are those with signifi cant in-migration, particularly from diverse populations. Maine's quality of place — the safety of our com- munities, excellence of our schools, and extraordinary natural amenities — make our state an exceptionally desirable place for people of all ages and backgrounds to live. We need to do a better job of marketing our assets to the rest of the world and ensuring that those who choose to live here regardless of their place of origin, race, or ethnicity feel welcome and able to contribute fully to our communities and economy. ©2016 People's United Bank, N.A. | Member FDIC | Equal Opportunity Lender Whatever your business goals may be, your local team at People's United Bank can help you go even further. Our expertise extends from commercial and retail banking, as well as wealth management services and beyond. We're a full-service bank with the resources of a larger institution and the personalized service of a bank down the street. In fact, we are the bank down the street. Call or stop by our Southern Maine locations to speak with one of our local experts. FULL-SERVICE BANKING peoples.com 207-828-3067 Local banking. Local perspective. PEOPLE'S UNITED BANK and MAINE Lisa Hook Commercial Banking Ann Marie Swenson Business Banking Dan Thornton President, ME Candy Fitzek Retail Banking Jim Edwards Government Banking John Lescure Wealth Management Lucie AuCoin-Hannigan Treasury Management

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