A radio caller wants me to give Grand Forks a grade for their economic performance in the last year. Here are some of the questions we need to answer first.
The radio audience really responded to the topics of income and wages the last few weeks. Along with the population posts (which I confess I find more interesting) I include another look at wages. I grabbed the data for goods producing and service providing jobs in three North Dakota counties: Cass, Grand Forks, and Williams. Nothing necessarily scientific about the county selection, just three that I know and that will likely give us something to ponder.
So I exchanged text messages with a friend about local economic data last week, and they asked about the rate of inflation and wage gains and what was happening with that nationally and locally. Enough sources deal with the national picture that I decided to focus on the local picture for this post. I used the CPI (all urban consumers, national average), since that is what my friend discussed, to calculate the real value of annual pay for Grand Forks county.
The big month is finally here! We now have a month with sales tax numbers reflecting the increased sales tax rate for the Grand Forks. We are all so happy that we could… Alright, enough of that. The results are somewhat to be expected. From the May 2018 total June was down over $200,000. Costs go up with the sales tax increase and people and businesses adjust if they are able. The more problematic part really is that June 2018 is down almost 1% fro June 2017, more than $120,000. These are not outcomes we particularly like even though they are somewhat predictable.
I am forgoing the typical numerical analysis for the purposes of the current post and just trying to reason through the problem that is economic development and economic development policy in Grand Forks. I got to spend some time in other cities over the last few days and so I have some fairly fresh points of comparison in mind.