More ND Stats

I was talking to someone in Arizona recently and asked him if he was aware of what was happening with the North Dakota economy the last few years. He said not really except he had heard something about things were going well. I asked if he knew what made it perform like that. He wasn’t sure but thought it had something to do with oil.

Well, just in case there are some people from this area who have been in the jungle the past three or four years I thought it might be a good idea to present some of the tax receipts data from the last two years. And here it is:
When I first started to present this data the economy was doing well. It was before the collapse caused by the false economy we were going to experience because of the banks playing with the housing market. In North Dakota we never got involved with playing with the housing market. However, we were going through a mixed performance anyway. That was happening because the boom in agriculture was just getting a good start. Prices and yields were both on a sharp increase. So too was all aspect of the level of technology in agriculture. In less than a decade combine harvesting capacity increased by 50 percent. That had a lot of good in it, but socially, culturally for North Dakota it had some important negatives. Especially, it meant there were a lot fewer farmers. That 50 percent increase in harvesting capacity meant there would be a need for a lot fewer farmers to cover the same acreage, and that is just what happened. While every acre was still farmed, in fact more acreage was farmed as farmers broke up the CRP acreage even before the contracts were up (by buying out the remaining time).

Taken together all the tables demonstrate that this is a good time for North Dakota. I don’t have the room to show them all here, but if we did the historical tables adjusted for cost of living would prove that these are the best times for North Dakota. We know too that it is so because of oil and agriculture and manufacturing all peaked in the same time.

Can we say that anyone, or group taken together deserve credit for this. I think so. Of course no one in North Dakota had enough influence to create the agricultural markets as they have been over the past few years. Certainly changes that have been made internationally have made a difference and created the situation that allowed for some of the historically high prices and yields.

As for oil production there is not much doubt that Governor Dalrymple and others including some legislative leaders deserve credit for creating the system and atmosphere that made fracking and the rapid development of the oil patch. It must be so because those opposed to the development criticize the Governor and the others for just such a thing.

Regardless of your stand on the issue it has made North Dakota’s current economy a record.


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