Saturday, May 9, 2015

Mayoral Candidate Steve Allender Responds To My Critique Of His Negative View On The Rapid City Economy. Sam Kooiker Told Me Friday He'd Have His View To Me Shortly.

Rapid City Mayoral Candidate Allender
(photo from

First, a link to the gross sales, by category.  You can hover over the graph and see dollar figures for each sector.

Secondly, below is a chart comparing South Dakota gross sales growth vs. Black Hills sales growth.
Third, even with low unemployment and high retail sales, being satisfied with lower paying retail and hospitality jobs is a bit short-sighted when considering the complexity of all the working parts of the economy and especially with the variable component of tourism.  Between 2007 and 2010 the black hills lost over 800 manufacturing jobs.  Higher paying jobs, or the lack of them, is a major issue for Rapid City.  We cannot expect a thriving, growing economic condition if everyone is making 9.00 per hour or less.  The below chart shows Black Hills incomes falling behind the rest of the state:

Manufacturing jobs traditionally pay better than retail jobs.  More income = more discretionary income = more spending on homes and durable goods and a better economy in general. 

Rapid City has high housing costs and 32.8% of its households pay more than 30% of their income to housing.  On average, 24% of South Dakota households experience this housing burden.  (US Census Bureau, American Community Survey) 

My comments about the economy were centered on manufacturing output, since 2009.  I did not say ‘since Kooiker was elected’ - those were your words I believe.  I did say the economy is flat in Rapid City, compared to the state, which I believe the data here supports.

I believe the local economy must be measured by many criteria such as median income level, cost of living, retail sales, output of each of the major economic sectors and yes, city sales tax receipts and building permits.  The building permits must be broken down to reflect of the $200 million, what of the total are government initiated projects and what are housing and commercial projects. 

Something I cannot chart, is the affect individuals with multiple jobs have on families and community.  If one or more parents have more than one job, especially full time jobs, the parent-child contact is reduced, the quality of life experienced is reduced, exhaustion and despair become issues and we may not experience any consequences of this for generations.

To summarize my analysis of the economy - It is not as stable as one might believe when a politician only uses building permits and sales tax data to reassure us that everything is good.  I am not satisfied that we have done all we should be doing.  I intend to be involved in finding the areas where improvement is needed and to work with others to make that improvement.

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