COMING BOOM IN OUR ECONOMY
Rapid City Journal
Sunday January 20th, 2008
By: Alan Aker
The population of South Dakota is
growing faster than the population of
California.
South Dakota was among the top gainers
in major moving company’s state-by-state
comparison of the number of households
migrating into the state versus the
number migrating out.
We lead the nation in income growth.
While the rest of the nation is reeling
from a depressed housing market, we keep
on building.
All of this has happened before the
federal government has spent any serious
money on the Sanford Underground Lab in
Lead. All of this has happened before
any dirt has been disturbed to construct
the new coal railroad to the Powder
River Basin. All of this has happened
before the construction of the major oil
pipeline and oil refinery East River.
All of this has happened before the
impact of Sioux Falls philanthropist
Denny Sanford’s $400 million commitment
to help make South Dakota a major player
in pediatric medical research. All of
this has happened before the impacts of
the new crazes for cellulosic ethanol
and wind power.
Let’s call these the gigantic seven: the
underground lab, coal railroad, oil
pipeline, oil refinery, pediatric
medicine, cellulosic ethanol and wind
power.
Something good is happening in South
Dakota.
Our economy is consistently
out-performing our region and the nation
even without the gigantic seven. Just as
obviously, we’re on the edge of an
economic boom. It’s highly likely that
most or all of the gigantic seven will
come to pass.
For one, they’re fairly diverse,
economically speaking. They include
government and health care spending,
which are immune to economic cycles.
They lean a little heavily to the energy
sector, but within that sector, they’re
very diverse. If the nation turns to
increasing reliance on electric cars and
electric heat, increased investment in
the coal line and wind power are
indicated. If we’re still in the middle
of the petroleum age, the oil pipeline
and refinery make sense. If we figure
out how to make cellulosic ethanol for
less that $20 a gallon, we’ll be just
one of several states which benefit, but
it would have a huge impact in relation
to our population.
The gigantic seven don’t depend on
whether Fortune 500 corporations
suddenly realize that they should help
us develop the next “technology
corridor” or that we’re a good place to
locate other kinds of jobs. The gigantic
seven don’t depend on the next Wal-Mart
or banking conglomerate blossoming here
(although the few publicly-traded
corporations based in South Dakota are
doing well). Most of the seven have
already progressed beyond the
feasibility-study stage, and have real
money behind them.
The idea of an economic boom runs
counter to our state’s psyche. Our
self-image is that we’re an economic
backwater. Ask a farmer or rancher how
he’s doing, and he’ll never admit to
prosperity. Texas and California people
are accustomed to economic booms, but
not us. When they’re riding high, they
thump their chests. When our boom hits,
we’ll fuss about whether it’s really
worth all the disruption and how long it
will last.
Maybe we think like this because of our
unusually high concentrations of
Lutheranism and Scandinavian blood.
Years ago, when I discussed a good
logging contract with my half-Norwegian,
fully-Lutheran dad, he sighed and said,
“It looks like we can get by.”
“Get by?” I asked, “How about getting
rich?” He said nothing, but rebuked me
with his scowl.
Ready or not, a boom is coming. Those in
elective office will take credit. Those
in real estate will take profits. Those
in envious despair will try to squish
it. It’s coming, nonetheless.
Alan Aker lives near Piedmont. Email him
by filling in the “contact us” form at www.akerwoods.com |
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