What are the long-term implications of the current financial turmoil for New Jersey?
I remember when Drexel Burnham Lambert and E.F. Hutton got into trouble in the 1980s, and people were quick to say that the scale of it was unprecedented. The current financial crisis is even larger. But the financial services industry will regroup in some form, and it’s hard to imagine that New York and New Jersey will not play a role in that – the question is how long it will take. In the meantime, New Jersey will be hit by losses in tax revenue; but the state economy is quite diversified, with a vibrant export sector. New Jersey is also a leader in “knowledge-based” industries like biotechnology, pharmaceuticals, and information technology. So the effect of the current economic conditions on New Jersey will be mixed. Norman Glickman University Professor, Center for Urban Policy Research Edward J. Bloustein School of Planning and Public Policy How do you assess the current state of the economy? What are the chances of a steep and severe downturn? I would say we’ve been in a recession
