Economic Growth in the State of South Carolina
Economic Growth in the State of South Carolina
By Shannon Norris
First, let’s define Economic Growth. Economic Growth deals with the economies income increasing over a period of time. This usually means individuals are better off, living standards are higher, and the economy in general is wealthier and producing more.
An economist would define Economic Growth as being measured in terms of the Gross Domestic Product (GDP); which means the total market value of all final goods and services produced in a one year period. Although GDP figures can be misleading, economists still use the figures GDP produces to determine the Economic Growth of a country, state, city, or town.
Every state desires Economic Growth for their economy. South Carolina Economic Growth in the year 2006 was good and the future looks more encouraging according to our state government. As of November 2007, more South Carolinians are working, earning more money, and spending more money than ever before.
South Carolina had a record breaking year in 2006 for capital investment and job creation. According to the U.S. Census Bureau, South Carolina was the 10th fastest growing state in the nation in 2006.
South Carolina’s Economic Growth is moving quickly because of our business friendly environment. South Carolina is ranked number one for the most business friendly state. Businesses want to locate in South Carolina because of our low taxes and our economic resources.
One of South Carolina’s economic resources is land. South Carolina has an abundance of land it rents or sale to businesses. Payment for the land and the taxes it generates goes back into the economy.
With the new business comes increased labor. Labor is another economic resource. The payment for labor is wages and salaries. When people work and earn salaries they generate taxes which also goes back into the economy.
Businesses produce capital, another economic resource. Payment for capital is interest. Businesses have buildings and materials they use in the production of their product.
New businesses produce entrepreneurial ability. Payment entrepreneurial ship is profit if the business is successful. If the business is successful it will produce more profit for the state. This generates more funds to put back into the economy. South Carolina has a very attractive economic climate for a business to locate and grow. With so many new businesses establishing themselves in South Carolina; we are above the national average in job growth. South Carolina’s job growth rate is 2.4%, while the national average is 1.4%. That bodes well for South Carolinians. Job growth is a positive indicator for Economic Growth.
But for some South Carolinians the job growth is a myth. The reason for this myth is “Outsourcing”.