Editorial

'Frontier economy' not necessarily a disadvantage

Tuesday, August 12, 2008

Live in rural Nebraska and have a steady job?

You're one of the lucky ones, according to a University of Nebraska researcher.

Rural, small-town Nebraska is gravitating toward a "frontier economy," the UNL rural sociologist told The Associated Press.

The researcher, Randy Cantrell, said an economy comprises workers with unreliable employment who often work for themselves, doing whatever work is available. Not including farm ownership, more and more of the rural economic activity includes such part-time workers, and fewer people have regular wage and salary jobs.

Unfortunately, the average earnings of self-employed people who didn't own farms declined from 62 percent of the average earnings of people with wage and salary jobs in 1997, to 34 percent in 2006.

"If you see an out-migration driven by accelerating economic decline -- which is possible -- then what you may be having is people staying in these areas just because they don't want to leave, and having to piece together work," Cantrell said.

The net result has been a decline in the size of the average town in Nebraska -- an estimated 320 people in 2007, compared to 465 in 1890.

Were Frank and Deborah Popper right in their proposal that much of the Great Plains should revert to the buffalo?

No, but one could make an argument that the land could never support the number of settlers, attracted by the Homestead Act and railroad promotions, who tried to make a living here in the late 19th and early 20th century.

But is a "frontier economy" a bad thing? Yes, many are having a difficult time generating the income they need, but they are also free to explore new opportunities as they arise. By the same token, a certain -- albeit low -- rate of unemployment is a good thing, making it possible for employers to find the workers they need.

The example used by the story in Maxwell, population 320, was the owner of a new grocery store, who hoped high gasoline prices would encourage shoppers to buy from her.

While Maxwell has the advantage of being a bedroom community for North Platte, only 15 miles away, most small towns have advantages of their own, such as high-speed Internet, tourism or other opportunities.

It's up to entrepreneurs to turn some of that "frontier" energy into a modern, thriving economy.

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