It was refreshing to read the McCormick-Goodin Balanced Economic Development Strategy released last week. Yes, it says some of the same things any such document is bound to say: “Invest in Education and Workforce Development.” Who could argue with that one?

“Increase Transparency and Accountability at the IEDC” (Indiana Economic Development Corporation). Of course! Hoosiers want to see what goes on behind the curtain where the Wizards work. To what extent and in what circumstances is secrecy actually warranted and who benefits from keeping the public in the dark?

There is a theme that runs through the report which is most noteworthy, and which has been ignored for decades by both parties. “[S]hift from prioritizing the largest employers to prioritizing people and small businesses.” And add to that, thoughtful decentralization of economic development.

The reality of centralization hits us in the face when we see that 49.3% of the population growth in Indiana in this century (2000 to 2022) has been in just 3 of our 92 counties.

Marion remains the most-populace county and enjoyed 15% of the state’s population growth. Hamilton moved up from 5th to 4th place in population size thanks to gaining 24% of the state’s increase. And Hendricks shot up from having the 16th largest population to 8th place as it enjoyed (suffered with) more than 77,000 added Hoosiers in those 22 years.

In that time span, 38 Indiana counties lost population. Grant, Delaware, Wayne and Wabash each lost more than 4,000 persons. Blackford, Wabash, Randolph and Grant each had a loss of 10% or more.

That’s population. The picture is similar if we look at the earnings of workers in each county before commuting moves earnings from one county to another. Total earnings produced in only 17 Indiana counties matched or exceeded the rate of increase experienced nationally over those 22 years. Among the top eight counties, five were in suburban Indianapolis. The other three were Gibson, Daviess and Lagrange.

The total buying power of money made while working declined in 29 Hoosier counties. The hardest hit were Fayette, Howard, Blackford, Madison and Henry counties.

The number of jobs in the nation increased in those 22 years by 28.5%, but only 13.5% in Indiana. In 52 of our 92 counties, the number of jobs decreased. The top five growing counties were all in metropolitan Indianapolis and accounted for 72% of the state’s job growth.

At the same time, the average earnings per job lost buying power in 15 counties. Such declines can be ruinous for local merchants.

The IEDC’s jubilant reports trumpet their achievements while neglecting the rot permeating our Hoosier economy. These data support the need for a comprehensive reexamination of Indiana’s economic development policies and the practices of our state and local agencies.
Morton J. Marcus is an economist formerly with the Kelley School of Business at Indiana University. His column appears in Indiana newspapers, and his views can be followed his podcast.

© 2024 Morton J. Marcus

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