Editor's note
Mr. Marcus is an economist formerly at the IU Kelley School of Business. Reach him at  mortonjmarcus@gmail.com. Follow him and John Guy on Who Gets What? wherever podcasts          are available or at mortonjohn.libsyn.com
They leave home, cross an imaginary line and bring money back home. They are not bandits or thieves, they are commuters, serving households and enriching businesses on both sides of those ancient lines.

But our minds have a fixation with the entities of our imagination. Local officials and narrow-minded activists talk about bringing jobs to our county. Maintaining our roads. Training our workforce. Protecting our environment. Educating our children.

We create organizations to do just that: Focus on our without recognizing that our well-being is determined in large measure by the actions and attitudes of our neighbors who may live at some distance from us.

The Gross Flow of Earnings (GFE), the money crossing Indiana county lines via commuting was 36.8% of Indiana’s Gross Domestic Product (GDP) in 2023, the last year for which we have data. That flow depends on how well we reduce the barriers between here and there.

Do we have the information flow necessary to keep workers and employers informed about jobs and skills? Do we have the transit to make safe, low-cost, daily journeys to and from work? Do we locate jobs where they are good for the workers and the firm, or are we concerned only with the cost of transporting the material inputs and outputs of the firm? Do we use our land efficiently or are we wedded to zoning concepts that preserve the privilege of a landed elite?

The story is different in each county, but the principles are the same everywhere. Martin and Spencer counties each had more than 65% of the earnings produced in their counties leaving in via commuting in 2023. Washington and Parke retained more than 86% of the earnings they generated.

Spencer and Brown both relied on inflows for more than 80% of earnings of their residents. Tippecanoe relied on such inflows for less than 10% of its residents’ earnings, followed by Allen at just over 11%.

Is it economically desirable to maximize the earnings retained? It might cut down commuting and environmental pollution. It might also reduce diversity and inclusion in the labor force. What are the benefits and costs of those actions?

New developments change these relationships. A new factory without an accompanying increase in the housing stock may have little effect on the income of residents, as workers flow in and carry earnings out with them. Whereas an increase in the housing stock can reduce the outflow of earnings from existing facilities.

Critics of I-64 and I-69 bemoan the lack of adjacent development, without considering what that road means for commerce via commuting. But that would require some research, which might be contrary to the thinking of our state and federal decision makers.
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.

© 2025 Morton J. Marcus

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