By Matt Matayoshi
In our daily life, we are constantly inundated with conflicting messages either regarding our changing economic climate or our slowing housing market. While there are definitely troubling issues involving our economy that we need to be aware of, there are also many positive things to give us encouragement.
The national networks have carried some eye catching headlines recently about the economy. In a December 7, 2007 article, ABC News released a story entitled “Consumer Confidence Is At A Two Year Low.” The article blamed this event on the slow down in the housing market. A few weeks later, ABC carried an article that was titled, “Consumer Spending Strong in November” which contained news that, “Consumer spending has risen at its fastest rate in two years.” This is just one example of the conflicting challenges we face in determining the real story.
The truth is there are a number of elements to the national economy that should give us encouragement. The Country’s Gross Domestic Product rate of growth will likely, when tallied, be equal to the robust GDP that was experienced in the mid 1990’s. During this period, growth averaged an amazing 3.8% annually. The third quarter growth indicates that the country is on track to have an estimated 3.9% growth this year. According to the Bureau of Economic Analysis growth in exports, personal consumer expenditures, and private inventory investment all contributed to this strong increase in GDP. Gross Domestic Product is a calculation of consumption + investment + (government spending) + (exports – imports) = GDP.
Locally, there is a lot to be optimistic about in Mason County. One significant economic indicator is our historic unemployment levels. Our unemployment rate is at the lowest level in 17 years. It is holding at 5.8%. To find a rate that low, you would have to go all the way back to 1978 when we experienced a rate of 5.4%.There could be a number of factors here that contribute to our ability to outperform national trends. These include the State economy which is experiencing historically low unemployment, surrounding economies in Thurston and Kitsap Counties are also relatively strong, and a local economy here that has diversified over the last decade.
Clearly, the housing market has had a considerable drag on our economy. Those producing materials for the housing industry have truly felt the softening of that market. The bright spot here are manufacturers that are producing products for other sectors. This includes producers that supply the furniture, commercial, or replacement markets.
As Mason County focuses on diversification, home grown industry, and problem solving, and less on national media forecasting our economy we will continue to grow.
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