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Economic Cloud Has a Silver Lining

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Economist Roger Tutterow, Ph.D. Professor of Economics at Kennesaw State University, speaking at Tandem Bank 2022 Economic Forum

In the early days of Tandem Bank’s existence, Chairman, CEO and Founder Charles DeWitt pointed out how it differentiates itself from many other banks.

In an interview with Atlanta Business Chronicle, he said there would be an increased focus on technology. Three years later, there is a main bank, but customers are encouraged to do more banking with their cell phones and utilize other technology.

The other difference is in the name. DeWitt said “Tandem” refers to the tandem bicycle, and it means that whether the client is an entrepreneur, a real estate professional or business operator, it will stay alongside them, providing capital or safeguarding their money but always keeping the spotlight on the customer.

In keeping with the philosophy of remaining beside clients, Tandem hosted its first Economic Forum on Thursday, September 22. The event featured Roger Tutterow, professor of economics at Kennesaw State University (KSU). He also serves as director of the Econometric Center, a research center housed in KSU’s Coles College of Business.

Economic insights shared

Tutterow shared his insights on the current economic situation and explained where metro Atlanta, the state of Georgia and the United States stand in global finance. His take was entertaining as well as informative as he covered critically important issues, such as:

  • Persistently high inflation and rising interest rates,
  • Labor challenges and supply chain woes,
  • Downward trending consumer sentiment, and
  • Likelihood and possible depth of a recession.

“We went through an incredible economic period from July 28, 2009 until February 2020,” said Tutterow. “The economy grew for 128 consecutive months, the longest economic expansion of the post-World War II era. And then the pandemic came. And we went from an economy that was growing at 2¼% to one that started contracting overnight.”

Although that was no surprise, the repercussions and recovery have many confused about whether we’re headed back to prosperity. “Today, the question on many people’s minds is ‘Are we currently in a recession? Or is one the likely outcome in the near term?’” he said.

With that as background, Tutterow showed some fundamental data to help find an answer. He first explained that the National Bureau of Economic Research (NBER) will determine an answer through analysis. On the other hand, it’s not inconceivable that the economy may actually start growing again.

“It may well be several more quarters before we get a final ruling,” Tutterow said.

There’s a misconception that two negative quarters of GDP growth indicate a recession is imminent. The NBER says a period of diminished activity in production, trade, income and employment of sufficient depth and breadth are proof of a recession. So, with payrolls still growing and industrial production still rising, it actually doesn’t appear the economy has been in recession in the first half of 2022.

Although the economy plunged during the pandemic, once things started reopening, consumer confidence came back up, said Tutterow. “And then we got into 2021. And the summer of 2021, fall 2021, confidence started falling.” he said.

Some media sources tend to blame the economic issues on gas prices. “The consumer psyche is overly sensitive to gas prices,” Tutterow said. “Gasoline prices exert more effect upon the perceptions of inflation than the actual percentage of the expenditures.

“Let’s be honest, gas prices matter. …So when the price of gas goes up by $2 per gallon, that’s $2,000 of after-tax, disposable income that goes from you into the gas tank [if you average about 1,000 gallons a year.]”

At the end of the day, the economy isn’t doing so bad, Tutterow stressed. Even though interest rates have climbed a little, buying a house at 7% interest sure beats the 18% average people were paying in 1981. Historically, access to capital is still cheap.

In the early days of Tandem Bank’s existence, Chairman, CEO and Founder Charles DeWitt pointed out how it differentiates itself from many other banks.

In an interview with Atlanta Business Chronicle, he said there would be an increased focus on technology. Three years later, there is a main bank, but customers are encouraged to do more banking with their cell phones and utilize other technology.

The other difference is in the name. DeWitt said “Tandem” refers to the tandem bicycle, and it means that whether the client is an entrepreneur, a real estate professional or business operator, it will stay alongside them, providing capital or safeguarding their money but always keeping the spotlight on the customer.

In keeping with the philosophy of remaining beside clients, Tandem hosted its first Economic Forum on Thursday, September 22. The event featured Roger Tutterow, professor of economics at Kennesaw State University (KSU). He also serves as director of the Econometric Center, a research center housed in KSU’s Coles College of Business.

Tandem Bank’s Chairman and CEO Charles DeWitt (right) with Tutterow

Economic insights shared

Tutterow shared his insights on the current economic situation and explained where metro Atlanta, the state of Georgia and the United States stand in global finance. His take was entertaining as well as informative as he covered critically important issues, such as:

  • Persistently high inflation and rising interest rates,
  • Labor challenges and supply chain woes,
  • Downward trending consumer sentiment, and
  • Likelihood and possible depth of a recession.

“We went through an incredible economic period from July 28, 2009 until February 2020,” said Tutterow. “The economy grew for 128 consecutive months, the longest economic expansion of the post-World War II era. And then the pandemic came. And we went from an economy that was growing at 2¼% to one that started contracting overnight.”

Tandem Bank 2022 Economic Forum held at Stone Ridge Event Center, Stone Mountain, GA

Although that was no surprise, the repercussions and recovery have many confused about whether we’re headed back to prosperity. “Today, the question on many people’s minds is ‘Are we currently in a recession? Or is one the likely outcome in the near term?’” he said.

With that as background, Tutterow showed some fundamental data to help find an answer. He first explained that the National Bureau of Economic Research (NBER) will determine an answer through analysis. On the other hand, it’s not inconceivable that the economy may actually start growing again.

“It may well be several more quarters before we get a final ruling,” Tutterow said.

There’s a misconception that two negative quarters of GDP growth indicate a recession is imminent. The NBER says a period of diminished activity in production, trade, income and employment of sufficient depth and breadth are proof of a recession. So, with payrolls still growing and industrial production still rising, it actually doesn’t appear the economy has been in recession in the first half of 2022.

Although the economy plunged during the pandemic, once things started reopening, consumer confidence came back up, said Tutterow. “And then we got into 2021. And the summer of 2021, fall 2021, confidence started falling.” he said.

Some media sources tend to blame the economic issues on gas prices. “The consumer psyche is overly sensitive to gas prices,” Tutterow said. “Gasoline prices exert more effect upon the perceptions of inflation than the actual percentage of the expenditures.

“Let’s be honest, gas prices matter. …So when the price of gas goes up by $2 per gallon, that’s $2,000 of after-tax, disposable income that goes from you into the gas tank [if you average about 1,000 gallons a year.]”

At the end of the day, the economy isn’t doing so bad, Tutterow stressed. Even though interest rates have climbed a little, buying a house at 7% interest sure beats the 18% average people were paying in 1981. Historically, access to capital is still cheap.

Left: Weare Gratwick
Sr. VP/Gwinnett Market President
470-482-1818 Office

Right: Wendy Willis
Business Development
470-482-1819 Office
www.tandem.bank

Arlinda Smith Broady is part of the Boomerang Generation of Blacks that moved back to the South after their ancestors moved North. With approximately three decades of journalism experience (she doesn't look it), she's worked in tiny, minority-based newsrooms to major metropolitans. At every endeavor she brings professionalism, passion, pluck, and the desire to spread the news to the people.

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PCBA Awards $500 to Furkids at March Networking Event

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Left to right, Monte McDowell PCBA Outreach; Donna Linden PCBA Board; Allison Reinert PCBA Board; Samantha Shelton Furkids; Lisa Proctor PCBA Board: Audrey Boyce PCBA Outreach, Matt Bettis PCBA Outreach (Photography by Richard Phillips)

The Peachtree Corners Business Association (PCBA) March Business After Hours Event was action packed with opportunities for business networking at Anderby Brewing. Everyone enjoyed new cocktails and specialty beers while enjoying dinner from Latin Fresh as well as axe throwing from Moving Target ATL NE.

The PCBA also presented a check of $500 to Furkids in support of their efforts to care for animals while helping to find their forever homes.

“The PCBA is proud to donate a check for $500 to Samantha Shelton, CEO of Furkids in support of their efforts to rescue homeless animals, provide them with the best medical care and nurturing environment while working to find them a forever home,” said Lisa Proctor, PCBA President.

“Our Outreach Committee and Board are impressed with Furkids’ commitment to provide care and restoration for these special animals at their no kill shelters. With the PCBA’s continuous commitment to supporting our community in a meaningful way, we are excited to be a small part of their efforts,” she added.

Headquartered in Georgia, Furkids is a nonprofit charitable organization that operates the largest cage-free, no-kill shelter in the Southeast for rescued cats, and Sadie’s Place, a no-kill shelter for dogs. Furkids also operates one of the only facilities in the Southeast dedicated to the care of FIV positive cats.

Furkids has rescued and altered more than 55,000 animals since its founding in 2002. Approximately 1,000 animals are in the Furkids program today, in the Furkids shelters, 10 PetSmart and Petco adoption centers, and more than 400 foster homes in the Atlanta area.

Funds for the PCBA Community Outreach program are raised throughout the year from PCBA membership, sponsorship and the annual charity event. Donations and scholarships are awarded at monthly events so members can learn more about these organizations.

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Shadow-Soft Joins Curiosity Lab as Startup Program Partner 

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Shadow Soft Logo

Peachtree Corners announced that Shadow-Soft has joined Curiosity Lab as a Startup Program partner, providing additional resources for startups in the lab’s incubation program. Shadow-Soft specializes in helping companies modernize their infrastructure and applications with containers, Kubernetes, and the cloud for scale, speed, and cost.

“As an Atlanta technology leader, we are always looking to support companies as they grow and scale. We use proven methodologies to make sure people know where to start, identify a clear path forward and understand what open-source tools to use so they can start small, think big, and act fast,” said Shadow-Soft Vice President Nick Marcarelli.

“This aligns perfectly with companies at Curiosity Lab as they begin to grow their businesses. At times it can be overwhelming for growing companies to build a stable, reliable, and secure environment. We can provide the architectural insights and engineering knowledge necessary to scale with ease,” he explained.

Shadow-Soft is offering free 30 and 60-minute consultations with their team of experts to aid Curiosity Lab startup leaders in three separate areas: creating a technology blueprint to bring ideas to life, building rapid software development prototypes, and constructing a technology infrastructure to scale on demand.

“Adding Shadow-Soft to the Curiosity Lab adds an immensely valuable tool to offer our startups – complementing the opportunity they have to collaborate with some of the top technology brands in the world,” said Curiosity Lab Executive Director Brandon Branham.

“One of the largest challenges startups face is scaling rapidly. When the time comes, startups will often need executive guidance when it comes to scaling their company correctly, quickly, and in an affordable way. Shadow-Soft will be able to coach our startups from the beginning of their journey to their peak growth to ensure they have long-term success.”

For more about Curiosity Lab’s startup programs and Shadow-Soft’s startup program offerings, visit curiositylabptc.com/startups/.

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PCBA Donates to WellSpring Living

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Pictured: Matt Bettis PCBA Outreach; Audrey Boyce PCBA Outreach; Suzanna Martinez PCBA Outreach; jeAnne Jeter Wellspring Living; Lisa Proctor PCBA Board; Allison Reinert PCBA Board; Michael Pugh PCBA Board; Toby Anderson PCBA Board

The Peachtree Corners Business Association awarded a check for $500 to Wellspring Living at their February 2023 Business After Hours Speaker Series Event!

The mission of Wellspring Living includes transforming the lives of those at risk or victimized by sexual exploitation. Wellspring Living provides community-based and residential services as well as partners with a wide range of human service organizations to ensure that each victim’s needs are met.  Programs include residential programs, community programs, and graduate services.  Wellspring Treasures (one located in Duluth) is not just a source of revenue but a hub for communities to engage with our work and be a part of the solution to help restore lives.

“The PCBA is proud to donate a check for $500 to Wellspring Living in support of their efforts to save lives at risk or victimized by sexual exploitation.  Our Outreach Committee and Board are impressed with the extent of the Wellspring Living programs and resources available in our community.  With the PCBA’s continuous commitment to supporting our community in a meaningful way, we are excited to be a part of the success of their survivors”, says Lisa Proctor, PCBA President. 

Funds for the PCBA Community Outreach program are raised throughout the year from PCBA membership, sponsorship, and our annual charity event.  Donations and scholarships are awarded at their monthly events, so the members have the opportunity to learn more about these organizations.

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