Thursday, December 08, 2022

Income gap between 'Old West' and 'New West' counties grows, as the rich get richer, Brigham Young study shows

Snowbasin Resort in Huntsville, Utah, pop. 700 (TripAdvisor)
Researchers at Brigham Young University released research findings on a two-part study of income changes in Western areas. The study, which included the states of Idaho, Montana, Wyoming, Colorado, Utah, Arizona, Nevada and New Mexico, "found increasing gaps between less wealthy 'Old West' counties that are typically known for mining, farming and ranching, and the wealthier 'New West' counties that are known for recreational amenities, such as ski resorts, biking and hiking trails and natural beauty," reports Cassidy Wixom of  KSL.com in Salt Lake City.

Twenty years ago, two geography professors, "Samuel Otterstrom and Matthew Shumway, conducted an initial study using IRS county-migration data that included income to look at how people and money were moving in and out of counties in the Mountain West. Two decades later, they completed a follow-up study as part of a project for BYU's Charles Redd Center for Western Studies and it was published in Professional Geographer. . . . The data showed that a lot of 'New West' counties had increased numbers of rich people moving in and poor people moving out."

Otterstrom told Wixom, "There were some counties in the study that were considered rural 20 years ago, but because of migration and income change, are now classified as urban counties. . . . Sometimes that rise in cost of living will price out the locals, people who have been there for a while — because they can't afford to live in that town."

Wixom reports, "Other areas, typically the 'Old West' counties, experienced little change in their population and are having to innovate in farming practices to make their economy grow."

The width of the income divide caught the researchers off-guard. Otterstrom told Wixom: "It is surprising just how much these rural communities have grown, compared to other areas. 'New West' income increase by $13 billion from 2012-2019, but 'Old West' counties saw growth up to $342 million, but others lost up to $359 million . . . If you look at the difference, it just totally dwarfs everything. Seeing how migration changed income . . . This data just shows that the rich get richer."

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