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Keys to Twin Cities Jobs Growth: Tech, Cooperation, Immigration

While South Dakota concentrates on recruiting gunmakers and failure-prone beef plants and mega-dairies to boost its economy, the Twin Cities continue to draw the big money. Here's the WonkBlog's take on metro-Minnesota's pretty good job opportunities:

Minnesota unemployment usually tracks below the national average, and the Twin Cities even below that. The region is blessed with 19 Fortune 500 companies, like Cargill, United Health Group, 3M, Target, Best Buy, Medtronic, and General Mills. It’s also a national center for the fast-growing medical device industry, giving it a pretty healthy base of careers in science and technology fields, with the revenue-generating patents and high incomes that come with them.

There are a couple of other less apparent factors behind Minneapolis’ success. Three decades ago, the regional governing body set up the Fiscal Disparities Act, which created a tax revenue-sharing agreement for a seven-county area. That facilitates regional cooperation in attracting companies–something that the tri-state Washington D.C. area struggles with, as each jurisdiction tries to steal companies from its neighbor. Also, the area has been a target for the federal Office of Refugee Resettlement, which has helped establish Somali, Hmong, Vietnamese, Ethiopian, and Liberian communities in the area. Immigrants start businesses at twice the rate of native-born U.S. citizens, so that’s a leg up too [Lydia DePillis, "Give the Weather Credit for Minneapolis'[s] Fantastic Unemployment Rate," Washington Post: WonkBlog, 2013.07.05].

Nineteen Fortune 500 companies, the ones who are evidently the best at making money, choose to make their homebase in a state that taxes and regulates more than South Dakota, which hosts no Fortune 500 companies. The Twin Cities draw high-tech workers, no doubt in part by offering them much better pay than South Dakota. The Twin Cities cooperate with their neighbors and share the wealth across local borders. And they recognize that immigration drives business growth—has South Dakota extrapolated that lesson beyond big dairies yet?

20 Comments

  1. Deb Geelsdottir 2013.07.07

    Damn those liberal blue state policies! They are working again!

    MN DFL, and most of the rest of the state, knows how crucial a well-educated work force is. Hence those damn liberal DFLers raised taxes in part to better fund education on all levels, from preschool to post-college, including tech and community post high school opportunities.

    Can it be that collecting more taxes results in a better standard of living? Of course it can. There are reams of historical evidence to support that.

  2. Kate V 2013.07.08

    So you are comparing a major US metro area(twin cities) to south dakota? of course the Cities is going to attract tech companies. South dakota is mostly rural state and thats where CAFO should be located. CH you are an idiot.

  3. kurtz 2013.07.08

    cah is many things but idiot is not one of them: cities are just CAFOs for homo sapiens.

  4. Stan Gibilisco 2013.07.08

    Texas has fewer regulations and lower taxes than Minnesota, but Austin (in particular) seems to be doing all right.

    I don't think taxes and regulations, in and of themselves, have much to do with economic success.

    It's all in the attitude of the people who live in a place. I've lived in the Twin Cities. They have an upbeat, can-do take on life, like Austin. That's what makes those places great.

    Just an old fuddy duddy's opinion.

    Hey Deb, I'd like to see some of your evidence to the effect that higher taxes lead to higher living standards. Could it be the other way around, maybe? People make more money, ergo, they're willing to spend more on the public sector to get better services, etc.?

    Which came first, the mine or the gold?

  5. James Snyder 2013.07.08

    Stupid article. And FYI, while we don't have a lot of large companies we do have a Fortune 500 in Sioux Falls. Raven. Plus we have large facilities of Fortune companies like Wells Fargo, Citibank etc.

    And you can't compare SD to the Twin Cities just like Kate says.

  6. kurtz 2013.07.08

    republicans=cheap.

  7. kurtz 2013.07.08

    democrats=safe.

  8. Jana 2013.07.08

    James, Raven is a great company, but they don't show up on the fortune 500. At least not according to Fortune Magazine.

  9. James Snyder 2013.07.08

    Sorry, Fortune 100 Small Business list.

  10. Deb Geelsdottir 2013.07.08

    My comparison was in regard to investment in education. That's not population dependent. In addition, if a good and effective example comes from MN, who cares? Just so long as the evidence shows it works. Doesn't matter if it comes from Redfield or France.

    Good question Stan. Historically, higher tax times were most prosperous for the nation. Low tax times were lower income/greater financial inequality times. I can't refer you to one place for that info because I don't know one. I know I have seen it quoted many times without dispute. I have seen arguments about why higher taxes and a better economic life correlate.

    I like your 'which came first' question. I don't know the answer, but I do know they correlate. Worth a shot, don't you think?

  11. Deb Geelsdottir 2013.07.08

    When looking at effective economic tools MN uses, I don't expect SD to do exactly the same. But SD can utilize most any of those tools according to SCALE. (Not shouting.)

    MN has several million people in need of education, SD doesn't have several million people total. So SD is not going to add some hundred million dollars in schools. But SD can and should raise taxes to better educate the several hundred thousand people who could take advantage of the opportunities.

  12. kurtz 2013.07.08

    it was gold that led to the occupation of sacred lands once devoid of mining companies.

  13. kurtz 2013.07.08

    the 1872 mining law was intended to spur immigration much to the horror of the people who had managed it for hunting and gathering for some 11,000 years.

  14. kurtz 2013.07.08

    red state failure on parade.

  15. caheidelberger Post author | 2013.07.08

    Heck I can't, James! The Governor does it; why can't I? If South Dakota were a business haven, we'd have a Fortune 500 HQ here. Where are they? Why aren't they flocking here for our purportedly best business climate in the nation?

  16. Stan Gibilisco 2013.07.08

    Larry ...

    Gold did not wreck the hills. The wasichu attitude toward gold wrecked the hills.

    Deb:

    A. Shot at what? Raising South Dakota taxes and telling people it will make them better off? Lots of luck.

  17. kurtz 2013.07.08

    stan: just flee.

  18. Jana 2013.07.09

    Thanks for the clarification James. But that's a big difference you tried to pass off to make your argument.

    The list I'm seeing off of a google search is from 2005. You have anything more recent since that's almost a decade old?

    I appreciate you sticking up for a SD company, but manufacturing falsehoods doesn't help them while you try to make your point.

    Again, Raven is a great company, but lying about their status not only hurts them but you.

    Anybody know right off hand how many publicly traded companies we have in SD?

  19. Jana 2013.07.09

    Stan, you say gold did not wreck the hills. But what are those permanent scars you can see from Harney peak and from Terry Peak?

    How in the heck did we ever agree to strip mining in our most treasured resource? Who in the heck sold that carnage as being good for SD?

  20. caheidelberger Post author | 2013.07.09

    And amazingly, Jana, we let that strip-mining happen in full view of Terry Peak, one of our key tourist attractions, as if we find nothing shameful in vaporizing mountaintops.

Comments are closed.