A Colonial Economy?

Perhaps you have heard the old joke about the North Country being a Third World country and the black fly is its national bird.

We may not be a Third World country, but is our economy a colonial economy? That was what was being said three decades ago about places like Vermont and other northern border areas like Northern New York. Research found that seven out of ten dollars being spent were leaving the area within a week’s time, going to metropolitan areas. One of the major sources of this money will be discussed in a future post. It has been argued banks and businesses were calling the shots for a region located hundreds of miles away. When there was a local presence by these large organizations, outside people were often brought in to fill the well paying jobs. This type of relationship, more than anything else, may account, in part, for the traditional ‘upstate/downstate” divisions in our state politics.

Such a trend is stark in its implications. Economists refer to “leaks” in an economy, but the rate at which money leaves our region is alarming. Our milk, #1 saw logs, and other resources are not being sold to build wealth, but simply pay the bills. In turn, the money received turns over very quickly leaving the local economy almost immediately

Beyond giving it a name or label, there is the whole matter on how to change this dynamic, how to slow down the drain of money and resources, how to keep more of it in the region a little longer. Spending money in ways that stay in the local economy would help. This, along with our geography, is part of the challenge we face as we consider economic development and the prospect of scarce and expensive energy sources here in Northern New York.