US Personal Income Growth Slows in 2012, Officials Say
|December 2, 2013||Posted by Staff under Economic Principles|
Americans’ personal income growth slowed in 2012 in most of the nation’s 381 metropolitan statistical areas (MSAs). On average, MSA personal income rose 4.2 percent in 2012, after growing 6.0 percent in 2011. Personal income growth ranged from 12.1 percent in Midland, Texas to -1.6 percent in Yuma, Arizona.
Midland, Texas was the fastest growing MSA, in terms of personal income, for the third year in a row. Odessa, Texas, which grew 11.5 percent, was second fastest, as it was in 2011. For both MSAs, the mining industry, which includes oil and gas extraction, contributed more than any other industry to personal income growth. North Dakota’s three MSAs were also among the fastest growing MSAs in the country in 2012. Personal income in the nonmetropolitan portion of North Dakota—where the booming mining industry is located—grew at an even faster 26.3 percent pace.
Declines in farm and military earnings, which were relatively small nationally, accounted for the personal income declines in four of the five slowest growing MSAs.
Among the 52 MSAs with a population of one million or more, professional services [lawyering, doctoring, etc], the largest industry in the large MSAs, contributed most to personal income growth in 2012.
Personal income grew 3.7 percent in nonmetropolitan counties, compared to 4.2 percent growth in metropolitan counties. The slower growth of the nonmetropolitan counties reflects the much lower earnings power of farming and government services. Nationally, farm earnings fell 1.2 percent while earnings in the private nonfarm sector grew 5.1 percent.
Ed. Notes: It didn’t say if the numbers were correctly for inflation which tends to double prices in the US every quarter century. Did you note the role of land including resources in wages? Demand for oil, a non-renewable, pushes up those salaries. But demand for food, which is reproduced every harvest, did not push up those salaries. And places where population density is greatest, salaries are highest, not just because that’s where lawyers and the like live but also because density delivers efficiency of scale so more profit can be made. So, to strike your fortune, live in a big city. But to balance work and play, live in the country where the cost of living is lower and your Citizen’s Dividend would go much further — once we as a society start sharing the worth of Earth and pay ourselves the extra income.