Paul Samuelson (1915-2009) was the first Nobel Prize-winning economist. He was born in Gary as was Joseph Stiglitz, also a Nobel Prize-winning economist. Stiglitz was educated in and graduated from Gary’s public schools.
As Hoosiers, we know little about the people and economies of our state. How is Lake County doing? We don’t have a very good idea because Lake County is blended in with the mega-economy of Chicago.
We know more about LaPorte County (Michigan City and LaPorte) because the federal Office of Management and Budget, using commuting data, does not recognize the four counties of Lake, Porter, Jasper and Newton as a stand-alone metropolitan area. It does, however, designate LaPorte County as a stand-alone metro area.
St. Joseph and Elkhart counties are closely tied to each other, but they are two separate metro areas for the feds. At the same time, Gibson County, just north of Vanderburgh County, is not within the Evansville metro area. Yet, Putnam County (Greencastle) is part of the Indianapolis metro area.
Does any of this matter? Yes. Federal funds are doled out more generously to counties in a Metropolitan Statistical Area. A medical facility in Columbus or Kokomo may be reimbursed at a higher rate than one in Seymour or Logansport.
But fear not. Small (in population) counties are scheduled to have more recognition later this year. Such is the announcement from the U.S. Bureau of Economic Analysis. All of the 3,000-plus counties of the United States will be blessed with Gross Domestic Product estimates starting in September.
This means from now on we’ll get data on the annual economic output of Lake and Porter counties separately from the Chicago area, of Marion County separate from its neighbors, and of Henderson County, Kentucky independent of the other counties in the Evansville metro area.
The concern is the data will be ignored by news reports, and ignored by local policymakers and business executives.
Why would such data, so closely watched at the national level, be ignored when available for counties? Simply, it will be new and of little value when potential users don’t know its reliability, usefulness, and potential in communicating with others.
Although most government and private decision-makers have only a primitive understanding of GDP, the fact that national news media cover each monthly announcement gives GDP prime public status.
Will the GDP of Jay or Johnson counties arouse passions in those counties? No, unless some aspirant for public office makes a point of comparing the local GDP estimate with that of Bhutan or Bulgaria.
Few will know Paul Samuelson described GDP and the data base on which it rests as “one of the great inventions of the 20th century.” And you thought the internet was the bee’s knees.
