http://www.economist.com/news/united-states/21614223-how-neglected-state-succeeding-quietly-booming
South Dakota has been quietly on the rise in the past few years. Even though South Dakota doesn't have an oil industry, military base or an influential university, it still has a 3.7% jobless rate which is third lowest in the country and it has Sioux Falls which is the fourth fastest growing economy in the country.
The state's economy used to depend mainly on farming but now many financial companies and hospitals are the main forces for the state. Citi-bank moved its credit card business there and many other banks have followed. The state has $2.76 trillion in bank assets which is the more than any other state including New York. What also makes South Dakota an attractive place to live or start a business, is the taxes. South Dakota has no state income tax, personal property tax, inventory tax, or inheritance tax.
However not everyone in the state is prospering as South Dakota has some of the poorest spots in the nation, mostly Indian reservations. For example there's Shannon County which has the lowest income per head in the country. But for now South Dakota's economy looks like it's still on the rise.
Excellent rises on South Dakota! But if there is lowest jobless rate, will there also be low wage? To think of industries like hospitals and financial companies, will the wage in South Dakota is low compared to another state?
ReplyDeleteIt is interesting that South Dakota has one of the lowest jobless rates in the country without having an oil industry in the state. The lack of taxes in the state most be a contributing factor to the low unemployment. I do believe that South Dakota would make a great place to start a new business. The economy is on the rise, including the financial sector, and there are many untapped markets.
ReplyDeleteIt is good to hear that South Dakota is beginning to improve. With that said, I wonder if the low jobless rate has anything to do with how low the total population is in the state. South Dakota ranks 46th among the states when population is compared and maybe the unemployment is as low as it is because the only reason to live in South Dakota is for the jobs. With the tax incentives and booming business, people could be moving to the state specifically for the jobs, making them employed, and there may not be many residents that are unemployed, making the unemployment rate as low as it is.
ReplyDeleteIt great to see their economy doing so well and so many people employed. Other states should start to realize that if they want to get companies into their states they need to lower the costs of operating in the state. South Dakota isn't close to any major economic center and has a huge banking sector because its taxes are a lot lower than any other state. I would be interested to see how the state does in the long run because it may be doing well now, but hopefully they have taken steps to make sure the states economy doesn't go into a recession in the future.
ReplyDeleteWith the lack of taxation in the state, it is sort of surprising that SD does have such a low population rate. Maybe as time goes on and more businesses start developing there, in combination with the lack of taxes, there will be more of an incentive for people to more there. An increase in population would elevate SD's economy to the next level because there would be more available labor for industries, which would then help increase the productivity of the state. This would start a positive chain reaction, more productivity equals more revenue equals higher wages equals incentive to seek jobs there equals more labor available equals more productivity, ect...
ReplyDeleteI find it interesting to see that SD's economy is on the rise with contributions from non-typical industry's that are having a significant impact on their economy. That being said, is this having a different impact on SD's economy with a deviation from their typical agriculture based industry with the recent influence of financial and health care industries? Have these industries affected the standard economy of SD? Where will the agriculture industry be in 20 years in SD if the population of the state has the potential to grow given the new employment industries?
ReplyDeleteIt's interesting to note that South Dakota's economy is booming due to the lack of suppression from taxes. Being from Massachusetts, I see companies go out of business left and right and people lose their homes all the time due to very high taxes and operating taxes. It will be interesting to see if the unemployment rate will stay low in the upcoming future. I can see how some people will see the low unemployment rate their and lack of taxes and want to move to open up businesses, which will in turn lower the unemployment rate even more and boost the economy.
ReplyDeleteSouth Dakota has always been a very functional economy. It comes as no surprise that they are on the rise. They are a state that has always had a low unemployment rate and that has caused them to have an effective economy. But their problems of the poor Indian reservations bring up an entirely different question. The whole problem of the poverty of Indian reservations is a something that I wonder what the solution is. But not many people talk to much about the problem so not much is done about it.
ReplyDeleteI think it is great to see that South Dakota's economy has been rising recently. What really interests me is how they have made the transformation from primarily a farming based economy into more financial and medical based economy. I also found it interesting that South Dakota has more bank assets than any other country including New York. The fact that they don't have tax in their state does seem to help and makes them a very attractive place for businesses. However, the situation with indian reserves and poverty seems to be a separate issue that is still just as important, but it is encouraging to see South Dakota's economy still climbing.
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