Area businessman promotes idea for economic growth
Iron Triangle approach looks to sustain prosperity nationwide.
WEST CHESTER TWP. — A local businessman is promoting his plan for 3 percent annual growth over 10 years for the U.S. economy, which he said should secure a prosperous future for all Americans.
Dan Cunningham, owner and CEO of Long-Stanton Manufacturing in West Chester Twp., has formed an institute to localize the focus on economic growth, while sharing his Iron Triangle approach to sustaining prosperity in communities nationwide.
Last year, the Cunningham Institute for Growth (CIG), Warren County public school officials and business leaders established a program with the United Way of Warren County, mentoring and training high-school seniors uninterested in college to develop skills enabling them to earn $25 an hour within four years.
“There was nothing for them,” Cunningham said. “They want to see the way forward.”
More than 450 students from five school districts participated and 23 graduated with jobs with participating local businesses and expectations of career advancement.
“It’s a huge issue across the country,” said Aaron Reid, president and CEO of the United Way of Warren County.
the needs of an area, state or community unable to sustain a 3 percent growth rate.
In some cases, the problem Cunningham, also a foris a shortage of people workmer member of the Execuing. In other cases, growth tive Committee of the Cinproblems can be traced to a cinnati Branch of the Federal lack of “productivity,” keepReserve Bank of Cleveland, ing wages too low for workers credited Reid with the sucto adequately support themcess of the pilot program. selves and their families.
“He and I want to make The third leg emphathis a national model,” Cunsizes the need for workers ningham said. “It’s going to who lose their jobs due to be bigger next year.” changes in the economy to
Reid said the institute pivot quickly through eduwould also be involved in cation, training or other supanalyzing data from the proport. gram as it moved ahead. To Harvard’s Shih, this is
“This had never been done the toughest part. before,” Reid said. “This really requires invest
Formed in 1862 in Cinments in lifelong learning, cinnati, the Cunningham’s and people have to be comfamily business, Long-Stanmitted to keeping their skills ton, does metal stamping up to date, which is practiand sheet metal fabrication cal but requires the proper for a wide range of indusmindset. You have to instill tries, including aerospace this attitude early,” Shih said and medical. in an email response.
The company employs To Cunningham, the Iron about 90 people. Triangle offers different solu
Cunningham, sole owner tions for a range of problems. since 1998, said he decided “If you can’t find your soluhe needed to take an active tion on one leg, look at the role in sustaining economic other two, you’ll find it,” growth in the country in Cunningham said. 2005 after being introduced For example, in western to an employee’s young famButler County, Cunningham ily. said, “they need more peo
In 2005, the growth rate ple,” boosting the populawas 2 percent, and the U.S. tion to draw supermarkets economy was stalling. “How and employers. do you fix it?” Cunningham “You have incentives to said. “How do you commulive there,” he suggested. nicate how to fix it?” While growing in popula
Cunningham, who grew tion, Warren County employup in the Lebanon area, was ers struggling to find qualan Advanced Leadership Felified workers could focus low at Harvard University in on attracting “skilled legal 2013 and got his master’s immigrants,” according to degree in public adminisCunningham. tration at the Harvard Ken“We’re not looking at econedy School of Government roots,” he said last week at nal video to explain the rela- nomic growth locally,” he in 2016. his home outside Lebanon. tionship between GDP and said, “what you and I can do
“Dan Cunningham is a dedCunningham, 65, growth. to get the growth rate up.” icated businessman, with explained that the U.S. econLast year the U.S. GDP was a real belief in the Amer- omy is based largely on a bal- $21 trillion with 3 percent ican system, so I applaud ance of consumer spending, growth for the second conhis efforts. I think most of business investment and govsecutive year. China’s GDP what he says makes a lot of ernment spending, known was $14 trillion with a 6 persense,” said Willy Shih, the as gross domestic product cent growth rate. Robert and Jane Cizik Pro(GDP). Cunningham’s three-sided fessor of Management PracHe used a Wall Street Jour- model is to be used to analyze tice for the Harvard Business School.
Cunningham also has an engineering degree from Ohio Northern University and studied at Xavier University and the Massachusetts Institute of Technology.
After his Harvard years, Cunningham returned home to Warren County and set up the Cunningham Institute and honed the Iron Triangle tool.
“I want it to be accurate and simple,” he said.
Cunningham, a Republican, hopes to join President Donald Trump’s National Economic Council to take his ideas to the federal level. He speaks around the country and is looking for collaborators to help spread the word about how to sustain economic growth.
“The most important thing is to get it going at the grassTo increase number of people working:
Increase number of legal skilled immigrants. Increase labor participation rate.
Increase market-based wages.
Replace negative incentives for Americans on welfare with positive incentives to leave welfare. Reduce income taxes by taxing the income for every worker the same tax rate.
Adequate nutrition.
Increase number of people, i.e. more babies. Reduce infant mortality rate.
Give awards to families that have babies.
Child care options.
Adequate health care.
To increase productivity, increase market-based wages of people working:
Improve ability to decrease the amount of time or resources to complete a work task.
Improve tools, or physical capital per worker. Improve human capital, or level of knowledge, and skills per worker.
Reduce racial and gender wealth inequality. Reduce cost and increased availability of natural resources.
Improve technical knowledge, i.e. patents. Increase business investment.
Increase private and government R&D.
To quickly pivot Americans out of work to higher market-based wage jobs:
As much as possible, let the market sort out the best way.
Regulate as little as possible; only when absolutely necessary for safety and health.
You, your family, and your community can start these and other actions.
Only allow the government to participate as a last resort. Stop writing off or excluding anyone anyone as potential contributing member of community.
Tutor child or adult in occupations that are viable for today and tomorrow’s economy.
Consider supporting someone who is pivoting through childcare, transportation, education, talk with them.
Source: Cunningham Institute for Growth