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South Dakota Real Median Wages Mostly Flat for Decade

By caheidelberger on 2014.01.16

Under Toby's apt inquiry into the South Dakota values expressed by Governor Dennis Daugaard's State of the State address, eager reader Wayne questions the Governor's cherry-picking of economic data:

"In the third quarter last year, personal income growth compared to the same quarter in 2012 was the highest in the nation. We have reached another important milestone as well, as our per capita income now exceeds the national average. Numbers available for 2012 indicate that the average South Dakotan earns about 3.8 percent more than the average American," Daugaard said.

It's true- our per capita income for 2012 was $43,659 (US was $42,693), but we dropped from 12th place in 2011 (at $44,217) to 18th place in 2012. Our per capita income dropped $560 and he's touting it.

Moreover, since the MEDIAN household income for South Dakotans is $46,456, (compared to the US Median of $55,030), more than half of our families still make less than half of all American families. That tells us the gains in per capita income are ill distributed amongst us [Wayne B., comment to Toby Uecker, "State of the State Confuses: Independence or Handouts the South Dakota Value?" Madville Times, 2014.01.15].

Wayne, the Lowe and Myers campaigns will want to speak with you. (Teams Hubbel and Strong won't, because you're not talking Agenda 21.) They'll also want this chart to expand on what you're saying:

South Dakota real median income, 2002–2012.
South Dakota real median income, 2002–2012.

Things at least look better for Daugaard than for that predecessor of his who's running for Senate. Real income dropped for a majority of South Dakotans under the Rounds Administration. The only real boost in median income coincided with the 2009 federal stimulus. But since Daugaard took the reins, South Dakota's real median income has done nothing impressive.

Economic development isn't just a statistics competition with Minnesota and the national average. Economic development means developing South Dakota's economy so South Dakotans have more money and more liberty than they did before. As Wayne's statement and the above data show, Mike Rounds and Dennis Daugaard have thus far failed to move that needle for a majority of South Dakota workers.

Published in South Dakota

caheidelberger

8 Comments

  1. John Tsitrian 2014.01.16

    I also call attention to a glaring inconsistency between what Daugaard said about present wage comparisons in the SOS and what the GOED posts on its own website. GOED glowingly claims one thing, the U.S. Labor Department's Bureau of Economic analysis paints a much less flattering picture. Costello at GOED shrugs it off as different methodologies producing different results. I think I'll use the time- and peer-tested BEA's data to draw my conclusions. It's over on the right under Constant Commoner.

  2. Wayne B. 2014.01.16

    I got to thinking about the statement of Q3 income growth - of course it was; South Dakota farmers had the largest corn crop (809 million bushels), which would've been taken to market in Q3 of 2013. Beans were strong too. Those who got their corn & beans to the elevator before the price of corn fell did pretty good (too bad we didn't get ours in till $4 corn hit).

    I did a little digging, the BEA suggests the drought was do blame for our decrease in per capita income in 2011. Hard for me to fault our Governor for a drought... but equally hard for me to give him credit for a bumper crop. Perhaps if we could de-couple farm income from the rest, we could have a better idea of how our state's economic development initiatives impact our general economic wellbeing (if there's any tangible impact at all...).

    I'm with Mr. Tsitrian about BEA data over SOS or GOED data.

  3. John Tsitrian 2014.01.16

    'Zackly, Wayne. As soon as I heard the Gov say "per capita" with reference to personal incomes I started checking around. "Per capita" and "average" are red flag words when it comes to tossing around statistics.

  5. Roger Cornelius 2014.01.16

    With Cory's article and Wayne and Mr. Tristan's comments, I find little room for commentary.

    I do have to agree that BEA is a more accurate measurement, per capita percentages can easily be skewered, depending on what you want them to say.

  6. Les 2014.01.16

    Though I don't disagree with jt's red flag issues, I'm a little baffled as to where the corn and beans are marketed in SD prior to Oct with 11% of the corn harvested by Sept 30th. Maybe I'm off a month somewhere. It is Sunday isn't it?

  7. Wayne B. 2014.01.17

    You're right, Les - I'm mixing 2013 crops with 2012 information... my bad. In 2012, it was what? $7.00 corn and $14.00 soybeans, right? I'm trying to remember how much was in by end of Q3 last year...

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