Michigan’s oldest college newspaper
Vol. 141 Issue 17 - February 8, 2018
www.hillsdalecollegian.com
Economics professors optimistic about Dow future
Steady unemployment, tax cuts indicate strong economy, despite the Dow’s largest single-day drop By | Breana Noble Editor-in-Chief The U.S. economy still appears healthy, according to professors in Hillsdale College’s economics department, despite the Dow Jones industrial average experiencing its largest single-day drop ever on Monday. “The underlying market economy clearly has not changed much over the past few days,” said Gary Wolfram, economics department chairman. “The economy is actually doing well.” The stock market index fell nearly 1,600 points at its low and closed 1,175 lower than its opening value, a 4.6 percent drop. That was the Dow’s largest intraday decline since August 2011. After Monday, the Dow has experienced volatile swings. Hillsdale economics professors, however, noted that the stock market is only one indicator of the economy and that other signs appear to be trending well with recent reports of wages increasing, a steady unemployment rate at
Katherine Scheu | Collegian
4.1 percent, and new tax and regulatory cuts. “It might update my feelings on the year a little,” Associate Professor of Economics Michael Clark said. “It’s one indicator, yes, so we update — marginally. Do I like seeing my net worth drop 4 percent in one day? No, but I don’t see it as symptomatic
of a functional problem of current investments and market activities.” Janet Yellen told CBS News in her final interview as the Federal Reserve chairwoman in an article published Sunday that the stock market and other assets were running high. “Now, is that a bubble or is [that] too high?” she said on Friday, her last day at the Fed.
“It’s very hard to tell. But it is a source of some concern that asset valuations are so high.” Wolfram said her statement might have signaled a rush of selling. It also may have hinted that interest rates could soon rise again, encouraging people to look into more secure investments such as bonds. Associate Professor of
Economics Charles Steele noted that low interest rates on bonds have driven many investors to the stock market, perhaps leading to the highs the Dow has seen. It set a record high of 26,616.71 on Jan. 26. “I think there has been something of a bubble,” Steele said. “The stock market, if you want your money to grow, has
been one of the few places to put your money.” Between Feb. 1 and Tuesday’s opening, however, the Dow dropped 7.7 percent. Wolfram said changes within 10 percent typically represent a correction. “I think what you’re seeing is a normal pullback driven by traders, but it’s been orderly,” Wolfram said. “We have not done that for a very long time.” Nonetheless, over one year, the Dow was still up 21 percent after tanking. Wolfram noted the typical expected rate of return over years on the stock market is 8 to 9 percent. “The price to earnings ratio was a little high, and now it’s a little low,” Wolfram said. “That tells you this thing is going to bottom out.” That would likely spur more buyers, he said. For now, though, the market is in flux, Wolfram said. “People are going to be scared,” he said. “You’re going to have some volatility over the next, probably, couple of weeks.”
See B6 to read about an alumna turned Marvel character The City of Hillsdale has updated its slogan. City of Hillsdale
City announces new slogan
By | Nic Rowan City News Editor The City of Hillsdale adopted its first-ever tagline at a Feb. 5 city council meeting. The new slogan — “Family. Tradition. Opportunity.” — will appear on city signs and documents as well as its website. It also could be added to city vehicles such as police cars in the future, as well. Chosen by popular vote via a poll on the city’s Facebook page, the tagline beat out “Classic. Creative. Community.” and “Small Town Feel. Lasting Impact.” by a margin of two votes. About 200 people participated in the poll. “I think the new logo and tagline is an announcement that we’re moving forward,” Mayor Adam Stockford said in an email. “It’s like buying a new wardrobe. It doesn’t accomplish anything per
se, but it’s meant to inspire confidence and hope. If it does nothing more than that, I’m fine with it.” Senior Joshua Liebhauser said he thinks the new slogan is an aspirational mission statement. “Hillsdale is trying to focus on economic improvement. New businesses like Handmade, Rough Draft, Hillsdale Brewing company, etc., have all opened, showing at least positive growth in local small businesses. Meijer wants to come here,” he said. “It needs to be immediately obvious what the tag line’s connection is to the town.” Junior Dylan Strehle disagreed, suggesting the tagline could better highlight was the town offers presently. “It highlights what our town could be as opposed to selling something we don’t have,” he said.
Caitlyn Larsen (right) performs as Nebula in “Marvel Universe LIVE!” Caitlyn Larsen | Courtesy
Parking agreement reserves College Baptist Church for student use
By | Breana Noble Editor-in-Chief Students looking to park in College Baptist Church’s lot now must register their vehicles with Hillsdale College security. After noticing an increase of students using the privately-owned lot for parking this year, College Baptist’s board of trustees approached Hillsdale College in the late fall about make a formal agreement for its use, expressing concerns about the lot’s use and clearing it of snow during the week. “We recognize parking is a premium at our proximity to the college,” said Mike Roberts, who is also the assistant headmaster and athletic director for college-owned Hillsdale Academy. “We wanted to figure out how we would be able to have control over the parking lot and be more upfront in communication both ways.” Signs marking the lot for student parking 6 a.m. to 11 Follow @HDaleCollegian
Security will begin ticketing unregistered student cars in the College Baptist Church parking lot beginning on Monday. Breana Noble | Collegian
www.hillsdalecollegian.com
p.m. on Monday through Friday were put up on Tuesday, said Bill Whorley, director of campus security. Notices also reserve the first two rows in the lot for church visitors, staff, and attendees. “Essentially it provides an option of another place for registered students to park,” Chief Administrative Officer Rich Péwé said in an email. “We’re very appreciative of the good people at College Baptist Church to go out of their way to be helpful to the college.” In return for permission to use the lot, the college is also providing maintenance, including snow removal on the weekdays, Whorley said. “We think it’s a win-win for both,” College Baptist Pastor Ben Cuthbert said. Enforcement will begin on Monday to give students time to register their vehicles with security. Registration costs $50 for each academic year. Although some students living off campus expressed annoyance at having to regis-
ter their vehicle if they want to park there, they noted the need for more parking. “I frequently park there because I was able to park there and on Hillsdale Street without having to register my car or worry about getting ticketed,” senior Joshua Liebhauser said. “Construction makes it difficult to park on the north side of campus. There are not a lot of options for parking, so upperclassmen frequently park there or farther away.” College Baptist and Hillsdale College have had a history of sharing facilities, even after they formally broke ties in the 1960s. The church typically holds the school’s convocation ceremony, and 50 to 100 students regularly attend service there. The college and church’s agreement exists on a month by month basis, and they plan to review it, after the stipulations are implemented. “We’d like to try it, and we hope it works out well,” Roberts said. Look for The Hillsdale Collegian