Figure 1
One of the benefits of this new LAGDP measure is that it provides an industry-specific breakdown that shows us how 34 different industries contribute to local economies. The tech industry, for example, contributed a substantial amount to local economies in the major cities of states such as California, Colorado, New York, and Massachusetts since 2001. (See Figure 2.)
Figure 2
Using the data, trends in the manufacturing industry and how manufacturing has contributed to GDP pre- and post-Great Recession are also now more trackable. Looking at the data since 2001, manufacturing output increased overall, but clusters of counties on the East Coast and the Midwest suffered contractions. Although overall manufacturing output in North Carolina increased, many counties experienced heavy declines over the past 17 years. (See Figure 3.)
Figure 3
The new measure gives an insight into the geographic distribution of our nation’s economic activity, but it also highlights just how unequally distributed GDP is. When looking at real GDP (after accounting for inflation) at the county level, LAGDP shows that 20 percent of the nation’s economic growth is concentrated in 11 counties, including the cities of Los Angeles, New York, and Harris, Texas. At the other end of the spectrum, the new data show that 20 percent of GDP is contributed by approximately 2,700 counties with the lowest economic activity. Aggregated GDP measures are not able to paint the picture that 2,700 counties contribute as much to the nation’s economy as 11 of the largest counties in America. (See Figure 4.)
Figure 4
These comparisons don’t mean that workers are more productive in Los Angeles than elsewhere, since the new measurement doesn’t account for population size, which means LAGDP doesn’t capture the overall well-being of families in each county. For instance, Los Angeles contributed 3.8 percent of the national GDP, but LAGDP doesn’t show that approximately 15 percent of its residents are living in poverty. But the data highlights just how vast the urban-rural divide is and how concentrated our economic activity is.
In order to provide a clear picture to policymakers about how the economy works for households at all levels of the income spectrum, we need more disaggregated growth and income data. On its own, the new LAGDP measure has the potential to widen our understanding of the impact industries have on regional economies. Combining this data with disaggregated national income data would facilitate the study of the effects of and relationships between industry growth and income inequality at such levels.
Equitable Growth’s GDP 2.0 project, which proposes that the Bureau of Economic Analysis extend the National Income and Product Accounts to assess national income distribution, is a further step toward better understanding who prospers when the economy grows. In the hands of local policymakers, these tools can guide efficient resource allocation, economic development and investment strategies, and opportunities for growth.
New measure of county-level GDP gives insight into local-level U.S. economic growth - Equitable Growth
One of the benefits of this new LAGDP measure is that it provides an industry-specific breakdown that shows us how 34 different industries contribute to local economies. The tech industry, for example, contributed a substantial amount to local economies in the major cities of states such as California, Colorado, New York, and Massachusetts since 2001. (See Figure 2.)
Figure 2
Using the data, trends in the manufacturing industry and how manufacturing has contributed to GDP pre- and post-Great Recession are also now more trackable. Looking at the data since 2001, manufacturing output increased overall, but clusters of counties on the East Coast and the Midwest suffered contractions. Although overall manufacturing output in North Carolina increased, many counties experienced heavy declines over the past 17 years. (See Figure 3.)
Figure 3
The new measure gives an insight into the geographic distribution of our nation’s economic activity, but it also highlights just how unequally distributed GDP is. When looking at real GDP (after accounting for inflation) at the county level, LAGDP shows that 20 percent of the nation’s economic growth is concentrated in 11 counties, including the cities of Los Angeles, New York, and Harris, Texas. At the other end of the spectrum, the new data show that 20 percent of GDP is contributed by approximately 2,700 counties with the lowest economic activity. Aggregated GDP measures are not able to paint the picture that 2,700 counties contribute as much to the nation’s economy as 11 of the largest counties in America. (See Figure 4.)
Figure 4
These comparisons don’t mean that workers are more productive in Los Angeles than elsewhere, since the new measurement doesn’t account for population size, which means LAGDP doesn’t capture the overall well-being of families in each county. For instance, Los Angeles contributed 3.8 percent of the national GDP, but LAGDP doesn’t show that approximately 15 percent of its residents are living in poverty. But the data highlights just how vast the urban-rural divide is and how concentrated our economic activity is.
In order to provide a clear picture to policymakers about how the economy works for households at all levels of the income spectrum, we need more disaggregated growth and income data. On its own, the new LAGDP measure has the potential to widen our understanding of the impact industries have on regional economies. Combining this data with disaggregated national income data would facilitate the study of the effects of and relationships between industry growth and income inequality at such levels.
Equitable Growth’s GDP 2.0 project, which proposes that the Bureau of Economic Analysis extend the National Income and Product Accounts to assess national income distribution, is a further step toward better understanding who prospers when the economy grows. In the hands of local policymakers, these tools can guide efficient resource allocation, economic development and investment strategies, and opportunities for growth.
New measure of county-level GDP gives insight into local-level U.S. economic growth - Equitable Growth
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