![Page 1: Economic Growth and Well-being in the Mountain Empire](https://reader035.vdocuments.us/reader035/viewer/2022062410/5681619a550346895dd14f4e/html5/thumbnails/1.jpg)
Economic Growth and Well-being in the Mountain Empire
Bill ShobeCenter for Economic & Policy Studies, U.Va.
Wise Virginia, February 23, 2013
![Page 2: Economic Growth and Well-being in the Mountain Empire](https://reader035.vdocuments.us/reader035/viewer/2022062410/5681619a550346895dd14f4e/html5/thumbnails/2.jpg)
You heard it hear first…
Prosperity is not about money.
![Page 3: Economic Growth and Well-being in the Mountain Empire](https://reader035.vdocuments.us/reader035/viewer/2022062410/5681619a550346895dd14f4e/html5/thumbnails/3.jpg)
Income Growth in SWVA
Source: Bureau of Economic Analysis, Regional Economic Information System
![Page 4: Economic Growth and Well-being in the Mountain Empire](https://reader035.vdocuments.us/reader035/viewer/2022062410/5681619a550346895dd14f4e/html5/thumbnails/4.jpg)
Income Growth: Another View
Source: Bureau of Economic Analysis, Regional Economic Information System
![Page 5: Economic Growth and Well-being in the Mountain Empire](https://reader035.vdocuments.us/reader035/viewer/2022062410/5681619a550346895dd14f4e/html5/thumbnails/5.jpg)
Income Growth: Sources
Source: Bureau of Economic Analysis, Regional Economic Information System
![Page 6: Economic Growth and Well-being in the Mountain Empire](https://reader035.vdocuments.us/reader035/viewer/2022062410/5681619a550346895dd14f4e/html5/thumbnails/6.jpg)
The Economy is Dynamic
Jobs and people move around (a lot).
![Page 7: Economic Growth and Well-being in the Mountain Empire](https://reader035.vdocuments.us/reader035/viewer/2022062410/5681619a550346895dd14f4e/html5/thumbnails/7.jpg)
Unemployment
Source: Virginia Employment Commission
![Page 8: Economic Growth and Well-being in the Mountain Empire](https://reader035.vdocuments.us/reader035/viewer/2022062410/5681619a550346895dd14f4e/html5/thumbnails/8.jpg)
Employment by Sector
![Page 9: Economic Growth and Well-being in the Mountain Empire](https://reader035.vdocuments.us/reader035/viewer/2022062410/5681619a550346895dd14f4e/html5/thumbnails/9.jpg)
Population
Source: Virginia Employment Commission
![Page 10: Economic Growth and Well-being in the Mountain Empire](https://reader035.vdocuments.us/reader035/viewer/2022062410/5681619a550346895dd14f4e/html5/thumbnails/10.jpg)
Development Conundrums
Higher productivity labor implies higher potential wages and more opportunities elsewhereHigher wage jobs imply greater productivity, so fewer workers are neededIncreased economic activity implies higher costs (price of fixed assets)Entrepreneurship increases with density
![Page 11: Economic Growth and Well-being in the Mountain Empire](https://reader035.vdocuments.us/reader035/viewer/2022062410/5681619a550346895dd14f4e/html5/thumbnails/11.jpg)
What Contributes to Prosperity?
Human capital Health and education
Natural capital Resources Amenities
Social capital Entrepreneurship Effective and responsive government
![Page 12: Economic Growth and Well-being in the Mountain Empire](https://reader035.vdocuments.us/reader035/viewer/2022062410/5681619a550346895dd14f4e/html5/thumbnails/12.jpg)
The Elephant in the Room
Coal has been a great natural advantage for the region But has it also been a curse? Has it limited diversification? Has it reduced the focus on human capital and
entrepreneurship?
![Page 13: Economic Growth and Well-being in the Mountain Empire](https://reader035.vdocuments.us/reader035/viewer/2022062410/5681619a550346895dd14f4e/html5/thumbnails/13.jpg)
Coal Production
![Page 14: Economic Growth and Well-being in the Mountain Empire](https://reader035.vdocuments.us/reader035/viewer/2022062410/5681619a550346895dd14f4e/html5/thumbnails/14.jpg)
Coal and Natural Gas Prices
![Page 15: Economic Growth and Well-being in the Mountain Empire](https://reader035.vdocuments.us/reader035/viewer/2022062410/5681619a550346895dd14f4e/html5/thumbnails/15.jpg)
Increasing Prosperity
Must address all three stocks of regional capital People Place Institutions
Must be based on a realistic assessment of advantages and potentials rather than simplistic comparisons to other places
![Page 16: Economic Growth and Well-being in the Mountain Empire](https://reader035.vdocuments.us/reader035/viewer/2022062410/5681619a550346895dd14f4e/html5/thumbnails/16.jpg)
If You Build It…
There is a sense in which a region is like a firm: If you provide something people want And do it efficiently And let them know about your product Your prospects are good.
BTW: A firm that has to pay people to consume your product, you have some thinking to do.
![Page 17: Economic Growth and Well-being in the Mountain Empire](https://reader035.vdocuments.us/reader035/viewer/2022062410/5681619a550346895dd14f4e/html5/thumbnails/17.jpg)
A Land of Natural Advantage
There is enormous untapped potential hereThe way forward is: Grounded in realistic assessment And focused on the elements of prosperity
rather than simple money measures of economic activity, which are a consequence of prosperity rather than a cause.
![Page 18: Economic Growth and Well-being in the Mountain Empire](https://reader035.vdocuments.us/reader035/viewer/2022062410/5681619a550346895dd14f4e/html5/thumbnails/18.jpg)
Thank you
Bill ShobeCenter for Economic & Policy StudiesWeldon Cooper Center for Public ServiceUniversity of [email protected]