First up is this graph showing interest rates from 1982 to 2017. As you can see, they’ve dropped and dropped, and this means your savings account is worthless. It draws no interest, and this is the idea – you can put that money into the economy instead.
One thing that is clear is that personal income has grown from $26,843 to $42,383 in just ten years. I’m not sure who has this money, for I know it’s not me or anyone I know. Everyone I know is struggling mightily.
Something else to notice is that our working age population in Montana is dropping. It used to be growing by 1.4% in 2005, but now it’s just projected to be 0.1% for 2015. That’s a huge problem, and it shows the problem that old folks leaving the workforce and young people leaving the state has for us.
While employment has picked up since the recession, it’s not showing those solid 2% to 2.5% growth rates it did in the mid-2000s. Now we’re getting about 1.5% a year or so. Why is this?
Construction is another that you hear about, but this is largely to prop up that huge section of the Real Estate economy. Construction produces just 5.2% of our state product.
I hope you learned something today, and I hope you’ll question a bit more. When politicians talk, they do so in a way that benefits them. If some of these numbers surprise you, obviously they don’t benefit you because you haven’t heard of them.
Thanks for reading!