Thus, it is not surprising to see strongest gains in such states as North Dakota, Wyoming and Texas, where oil technology improvements are creating a boom.
Wednesday, October 8, 2014
The Changing State of States' Economies
GDP numbers are far from my favorite data points. However, the numbers below are probably fine in detecting very rough general trends as to where Fed money is flowing and where there truly is a boom in productivity.
Thus, it is not surprising to see strongest gains in such states as North Dakota, Wyoming and Texas, where oil technology improvements are creating a boom.
Depicting states scaled to the size of their respective economies provides another perspective, because it’s the relative size of a state’s economy that matters when considering the contribution of state-level GDP growth to the national economy. From this perspective, it is not a surprise that California and New York are such big contributors, given that much newly printed Fed money ends up on Wall Street or in Silicon Valley.
(Charts via Federal Reserve Bank of Atlanta)
Thus, it is not surprising to see strongest gains in such states as North Dakota, Wyoming and Texas, where oil technology improvements are creating a boom.
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