In a recent interview on WCVB’s “On The Record,” Jim Rooney, President and CEO of the Greater Boston Chamber of Commerce, addressed pressing economic issues impacting Massachusetts.
Among the topics discussed were the effects of President Donald Trump’s tariff policies, rising housing costs, and cuts to federal research funding.
Rooney opened the discussion by emphasizing the uncertainty that tariff policies have brought to the business community.
He remarked that the imposition of tariffs has caused a sense of paralysis among businesses, as companies hesitate to make investments or expand due to this ongoing uncertainty.
“Many are playing a wait-and-see game,” he said, noting that as some businesses have begun to stockpile inventory in anticipation of higher tariffs, the effects will take time to materialize.
Rooney mentioned the potential for price increases across various sectors, such as automotive repairs, where the costs of replacement parts will inevitably rise due to tariffs affecting suppliers.
Reflecting on economic warning signs specific to Massachusetts, Rooney pointed to businesses, like Hasbro, that reconsidered expansion plans in light of tariff-related uncertainties.
“They openly stated that given the uncertainty around the tariffs, we’re not going to make the move at that point,” he recounted.
As businesses face these challenges, the Chamber has been closely monitoring the ongoing trade negotiations with major trading partners, including Canada, Mexico, and China.
While the White House insists that tariffs will revive American manufacturing, Rooney is skeptical about the feasibility of such an outcome.
He explained, “There’s some things that we can never compete in terms of labor rates,” highlighting industries where the U.S. may struggle to match international competition.
Rooney remarked on the long timeline it takes to build factories and establish manufacturing capabilities domestically, asserting that any benefits from tariffs would be seen only in the long term.
“It’s a long-term play to try to get some of that activity, but I don’t think we’re going to see as much as we’re hearing,” he clarified.
When discussing the rising cost of living in Massachusetts, Rooney noted that affordable housing is a significant concern affecting business hiring across all industries.
He highlighted a recent survey revealing that 25% of young professionals in Massachusetts do not envision living there in five years due to high housing costs.
“That’s top of the list for employers trying to attract talent to Massachusetts,” he stated, underscoring the urgency of the issue.
Addressing potential solutions, Rooney expressed concern over proposed rent control measures, citing negative historical outcomes from similar policies in the past.
“I think we’re trying a lot of things that have a history of failing, like rent control,” he argued, believing that such measures deter property investments and lead to increased prices in non-rent-controlled units.
Still, he believes that incentivizing the free market is the optimal route to alleviate the housing crisis.
On the topic of federal funding cuts, Rooney turned to the implications for medical research in the state, highlighting a coalition of chambers mobilizing to address those cuts’ economic repercussions.
“Research matters a lot to America,” he emphasized, particularly in Massachusetts, a hub for medical and life sciences innovation fueled by federal funding.
Rooney mentioned that the coalition—including 72 chambers from across 33 states—aims to make a business case for the importance of research funding to lawmakers in Washington.
He stated, “There’s about a half a million jobs created by NIH funding that we rely on,” emphasizing the gravity of potentially lost jobs if federal support diminishes.
The coalition’s efforts include a planned visit to D.C. to appeal to congressional leaders, advocating for sustained investment in research.
Regarding Harvard University and its approach to the pressures from the Trump administration, Rooney expressed his approval of the institution’s stance.
He noted that Harvard has the capacity to take a long view in its operations, which differentiates it from many other organizations.
“They’re smart; they’ll make a deal of some kind,” he suggested, expressing hope for a resolution that would release research funds held up by political tensions.
Finally, when discussing funding for medical research in Massachusetts, Rooney remarked on the Governor’s commitment of $400 million against a backdrop of a $2 billion shortfall in federal funding.
While he acknowledged this state funding as a positive initiative, he also pointed out its limitations and the challenges in filling the funding gap.
Ultimately, Rooney’s insights underscore the multifaceted economic challenges facing Massachusetts, from trade policies and the ongoing housing crisis to the critical need for research funding support.
image source from：wcvb
