Economic growth needs to target prime wage earners

We've seen some economic development efforts for attracting and retaining young people in our area, and initiatives for bringing retirees here as well.

A new Census study by the Center for Rural Affairs advocacy group points out the need for increase the number between those two groups, however.

As rural areas in the Northern Plains continue to lose population, more and more of us live at the ends of the age distribution -- 0-19 or 65-plus -- and fewer and fewer are 20-64.

According to Census data assembled for the study, rural areas showed 26 percent of people age 0-19, 26 percent 20-44, 29 percent 45-64 and 19 percent 65 and over.

Metropolitan areas, by contrast, showed 28 percent 0-19, 35 percent 20-44, 26 percent 45-64 and 11 percent 65-plus.

"The youngest and oldest generations tend to need more services than the middle-aged working generations, so you have needs for schools and health care and other social and human services," said Jon Bailey, research director at the CFRA.

The question is, "how are rural communities going to provide those services for their youngest and oldest citizens?" Bailey said.

The answer is by taxing those in their prime, productive years. The problem is, that is the group that is shrinking in rural areas.

People tend to generate the most tax revenue and spending to keep economies going when they are in in their 20s through 50s, when they are working and raising families.

Changing federal policies can help, Bailey said, but first rural residents should change their attitudes.

"I think the worst thing often that adults do to their children, or to young people in the community, is send out the message that the best thing you can do is leave, and don't come back; and I think we need to change that mindset in rural communities," he said.

The CFRA report called for $500 million over five years to a Community Prosperity Fund to help rural areas stabilize.

We would prefer other, more local efforts like the Hormel Business Plan competition and private funding that have spawned new businesses and put old businesses in younger hands around McCook over the past few years.

As in the case for the rest of the nation, small businesses started by young entrepreneurs are the most promising source of growth for our local economy.

Regardless of the method of achieving the growth, the conclusion that Southwest Nebraska and Northwest Kansas need more economic opportunities is one we can all share.