Meet the state with America's strongest economy
North Dakota's oil boom has sent its GDP soaring, and it's minting 2,000 millionaires a year. But it also faces tough problems.
There's relatively good news nearly across the board when it comes to America's state-by-state economic growth. A new report from the Bureau of Economic Analysis says every state and the District of Columbia, with the exception of Connecticut, experienced real increases in gross domestic product last year.
Overall U.S. real GDP -- that is, adjusted for inflation -- grew by 2.5% in 2012, after an increase of 1.6% a year earlier. Those gains were led by stronger data from durable goods manufacturing, wholesale trade and the finance and insurance sectors.
But if you're looking for the hottest state economy, go north, young man -- to North Dakota. Fueled by the energy boom, it led the nation with a 13.4% increase in GDP in 2012.
Oil production from the underground the Bakken Formation has dramatically changed North Dakota's economic landscape. According to the office of Gov. Jack Dalrymple, the state has created more than 102,000 nonfarm jobs since 2000, and per-capita personal income also doubled during that period. North Dakota's exports totaled nearly $4.3 billion last year, a 26% increase from 2011.
The Center for Innovation at the University of North Dakota tells the Inquisitr website the state is minting nearly 2,000 new millionaires each year, with much of that new-found wealth coming from oil royalties on land. But North Dakota also faces a series of major challenges from the oil boom, including a strained infrastructure, runaway housing prices and the nation's highest worker death rate.
Second on the list of states with the strongest economies was Texas, with a real GDP growth of 4.8%, followed by Oregon at 3.9%.
And what of that laggard Connecticut and its negative (-0.1%) GDP last year? Analysts say unlike the rest of the country, the Nutmeg State's financial services and insurance sectors -- along with weak real estate and austerity in government programs -- were a drag on the regional economy.
"One of the things that Connecticut has done, which is showing up in these numbers, is shrink the size of government faster than just about every other state," Governor Dannel Malloy was quoted in the Hartford Courant. "That is not generally understood. So that has a negative impact [on the economy] and specifically had a negative impact in 2012."
But Don Klepper-Smith, an economist with DataCore Partners in New Haven, told the newspaper that Connecticut's economic issues go beyond a smaller government sector. "Our economic development policies and tax policies, while well-intentioned, are not serving us well."
As a resident of North Dakota who lives right in the middle of the boom, I can tell you it's not all roses and sunshine. With the influx of workers, of who, 90% are great people just trying to make a living. It's the 10% that are the problem. My family has been here for 100 yrs this spring. Up till 3 tears ago we never locked our doors. You just left them open, so if someone had troubles, they could use the phone or a vehicle. Now there are the dregs of society trying to score some easy money. I have worked my butt off ranching, farming and working the oilfields to have what I have. If someone thinks they are gonna take it from me, well just try.
If you think you can just come here and make $100,000+ just like that, think again. Housing rents criminal, $1000 for a room, $2000+ for an apartment, if you can find one.
There are great things happening here, but there is also criminal element that this area has never seen before. Murder, stabbings, rapes, robberies. A woman can't even go to walmart alone.
Not to mention the fly by night oil companies that come in and think they know the Bakken. You will here them say " That ain't how we did it in Texas". You can tell a Texan a mile away, but once they get close, you can't tell em nothing. ;)
the last time this kind of oil boom happened the economy doubled in 4 years. That is the facts,,,its been a while though.
North Dakota housing, in the middle of nowhere, should be as cheap as Idaho. Since there's a huge demand though, prices are sky high.
This applies in all other areas of the economy as well.
If we deported illegals, wages would rise because there would be a scarcity of people willing to mow lawns, clean toilets, do menial jobs. When fewer people are willing to do something, you have to pay more to attract them. People who support amnesty for illegals don't care about lower income Americans.
Gas prices are higher than they were before, because huge foreign countries now demand large quantities of it, so the demand/supply situation is much tighter than it was 20, 30 years ago.
When a new electronic game console or gadget sells out immediately, that item can be sold on E-bay for twice, three times its value because there's a huge demand and very little supply.
The bigger the supply, relative to demand, the lower the price. The smaller the supply, relative to demand, the higher the price.
He's lost way too much weight, looks pale, thin, and very unhealthy.
The employee turnover rate in the oil business is skyhigh. Most workers don't last 6 months. My brother has been working there about 18 months. He is the most senior person there now. Everyone else has quit. This work wil likely kill my brother within a couple years.
These are the hidden truths that no one wants to tell us about the oil industry. There's a reason why it has a sky high turnover with employees hating the job and quitting.
Now, Republicans want to end OVERTIME and repeal the 40 hour workweek, once again?
Many think that the oil boom is ND can be replicated all over the U.S. and then oil prices will drop to levels of 20 years ago. It is not going to happen; you will pay the market price, whatever that market (world market) price is. If everything is so wonderful in ND, why are there some negative posts from ND residents regarding increased crime, dirty water, housing and rental costs, and other environmental issues. When things become polluted, like rivers and lakes, what happens then? Progress never comes without a price. The question is, does everyone want to pay for it?
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