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Wisconsin IDEA
Insight • Data • Economics • Analysis
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How Should We Measure Economic Growth?
Wisconsin's Future Economic Growth Differs by How It's Measured
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If there is a single measure of economic growth it would be gross domestic product (GDP). It represents the total value of all finished goods and services produced within a country's (or state’s) borders within a specific time. To compare different regions, it is common practice to adjust total GDP to a population base, specifically GDP per capita. This simple adjustment allows for comparisons of different countries and/or states. But some economists are suggesting that as society ages this simple adjustment can be misleading. Japan is often used as an example, where on a per capita basis the economy appears to be lagging behind other developed economies. But as Japan ages the growing number of older people not in the workforce making direct contributions to GDP could be distorting what is happening to the Japanese economy. Some economists are suggesting that rather than adjusting GDP by total population the adjustment should be by the working-age population. When this adjustment is made to the Japanese data, the growth of the Japanese economy appears stronger than the U.S. economy.
Consider the GDP for Wisconsin (adjusted to 2012 dollars to remove the artificial effects of inflation) where GDP per capita and GDP per population aged 24 to 65 are compared. Because GDP is adjusted to different reference populations, the level of GDP per working-age population will be much higher than GDP per total population. The more relevant observation is the growth rates between the two measures. For GDP per total population, the average annual growth rate from 1970 to 2023 is $646.16 but for GDP per working age population the average annual growth rate is $1,022.20. As the Wisconsin population ages, retires and lives longer, we need to think more deeply about how we measure economic growth.
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Econ Quiz: Transition to Adulthood
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It’s no secret that as children grow up they move in and out of stages of proclaimed independence. Seeking or receiving help from parents oscillates between being necessary when we are young, an embarrassment when we hit the pre-teens, and a true comfort when we become young adults. This econ quiz will delve into one of many facets of parental aid: financial.
Roughly 66% of young adults, ages 18-34, say their parents prepared them either a great deal or a fair amount to be an independent adult. Parents were significantly more likely to report this same sentiment, that they prepared their children either a great deal or a fair amount, with 86% reporting. That said, of adults under 30, less than half (45%) are completely financially independent from their parents, with 23% reporting they are “mostly” independent.
On the parenting side, 59% of parents reported giving financial aid to their children ages 18-34 at some point in the past 12 months, of which 36% said that providing help hurt their own personal financial situation. According to parent’s responses, the predominant category in which young adults get financial aid is for household expenses such as groceries, or utilities, closely followed by cellphone bills and subscriptions to streaming services.
Help from family members can go in both directions. To flip this quiz on its head, what percent of young adults say they helped their parents financially in the past year?
A. 12%
B. 25%
C. 33%
D. 40%
E. 49%
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INTRODUCTION
There are a number of factors feeding into the current labor shortage, and while the problem seemed to accelerate after the COVID-19 pandemic, we have been facing a downward trend in unemployment for over a decade. Some of the biggest shifts driving the current labor shortage are demographic, as baby boomers enter retirement and fertility rates have remained low since the 1970’s, leaving fewer prime-age (25-54) workers to fill jobs. These generational factors create a long-term structural challenge to growing the labor force. Some may consider automation as a tool to reduce labor demand, but more often, it merely shifts the types of skills required for a job or even increases overall employment needs (Nunes, 2021, Tschang et al. 2021).
Another pathway to expanding the labor force is to support audiences with barriers to employment such as justice-involved individuals, people with disabilities, and parents, especially mothers, with young children. Childcare access is a key barrier to employment for many women, which can affect the overall availability of labor. Improving childcare access can increase women’s labor force participation while simultaneously providing a long-term investment in education for future generations (Conroy, 2019).
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Getting Ready for BEAD Funding: Permitting, Engagement, and Learning from Experience
Join us for a broadband regional workshop on Getting Ready for BEAD Funding: Permitting, Engagement, and Learning from Experience. We will hold nine workshops in convenient locations across the state. This event focuses on equipping attendees with the essential knowledge and tools required to successfully navigate the complexities of broadband expansion. This event is ideal for elected officials, community leaders, and volunteer committee members involved in broadband expansion efforts, as well as organizations supporting broadband planning and permitting authorities. Register today to secure your spot!
The nine regional workshops will be held:
- March 14, Iowa County Law Enforcement Center in Dodgeville
- March 21, UW-Parkside in Kenosha
- March 22, Fireman’s Park Pavilion in Waterloo
- April 10, STEM Innovation Center in Green Bay
- April 16, Vernon County Sherriff’s Office in Viroqua
- April 25, Portage County Annex in Stevens Point
- May 1, Flat Creek Lodge in Hayward
- May 14, CESA 10 Offices in Chippewa Falls
- May 22, Northcentral Technical College in Antigo
Registration for each session is $25 and covers lunch, refreshments and materials. public.
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2024 Wisconsin Rural Economic Summit System
Thursday March 28, 2024 | 9:00 am - 12:00 pm (CST)
Using the latest research and data specific to Wisconsin’s rural communities and regions, we will focus on the Wisconsin rural economy. The summit includes an overview of the latest economic and demographic trends across rural communities, an examination of entrepreneurship, and a discussion of what rural communities can do to foster economic growth and development. This event is virtual and free to the public.
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Join us in Platteville for Wisconsin’s FIRST Connecting Entrepreneurial Communities Conference. Gathering economic developers, municipal leaders, and entrepreneurs, the CEC Conference is a statewide conversation about supporting entrepreneurship in rural Wisconsin. Come to the Driftless Region for presentations and tours to learn how to build an entrepreneurial ecosystem in your own community!
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Rural Pharmacies an Overlooked Piece of the Rural Health Care System
This webinar explores the pivotal role of rural pharmacies in providing vital healthcare services, especially in areas affected by hospital closures. Learn why the decline of independently owned rural pharmacies is a pressing concern, affecting medication access and downtown vitality.
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(Wisconsin Public Radio - 3/1/2024)
(The Badger Herald - 2/22/2024)
(WisBusiness.com - 2/19/2024)
(Agri-View - 1/30/2023)
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Equal Employment Opportunity & Affirmative Action Statements
An EEO/AA employer, the University of Wisconsin-Madison Division of Extension provides equal opportunities in employment and programming, including Title VI, Title IX, the Americans with Disabilities Act (ADA) and Section 504 of the Rehabilitation Act requirements. Please make requests for reasonable accommodations to ensure equal access to our educational programs as early as possible preceding the scheduled program, service, or activity.
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