In recent years, Hicks pointed out that every community development director has wanted to “attract an Amazon warehouse with 500 jobs.” Tax and incentive packages have been developed to facilitate these goals. He recommended that elected officials and community development directors should seek well-educated, well-compensated workers employed in high-tech fields to grow their communities. He added these workers understand and are able to operate in today’s mobile job and housing markets.
Hicks said in the last 30 years, 80 percent of job growth has gone to college graduates, and the rest to those with some post-high school training. This builds a self-reinforcing and virtuous cycle where local governments have more tax dollars available to spend on amenities, while businesses face lower labor costs. This affirms what Hicks has also written from his research: “residents naturally will pay more for a home in a nice place and accept slightly discounted wages to live where they prefer. Or to San Francisco (or most locations in California), or other high growth and taxed areas in the nation as he told the group assembled for the local summit in Medaryville. “If low taxes mattered, no family or business would move to Carmel, Fishers, Westfield or Zionsville,” he has written. He said the price people are willing to pay for homes and the wages they will accept depend on the amenities of the community.Ī self-described “Reagan conservative,” Hicks acknowledged that low taxes do not rank high on factors that attract population or business. Hicks reported that research reveals quality of life issues drive these choices – most important of which are well-funded public schools, low crime rates and a healthy environment as measured in resident average health. “What in today’s economy cause them to live where they live? Most (local governments) want more people and businesses,” he continued, asking the critical question, what incentives lure them to a location?īeaches, lakes, mountains and temperate climates and other such natural amenities help, but don’t top the list. Hicks noted he and fellow researchers have conducted extensive studies on why people live where they live, and businesses locate where they do. Michael Hicks of Ball State University (left) and Pulaski County CDC executive director Nathan Origer visit before the 2022 Pulaski County Economic Development Summit in Medaryville. He is also well-known to many for his articles on economic matters in statewide newspapers and other publications.Įconomics and business research professor Dr. Hicks is the director of the Center for Business and Economic Research and the George and Frances Ball Distinguished Professor of Economics in the Miller College of Business at Ball State University.
Hicks provided abundant statistics and research, past and present, on why population and businesses locate where they do, what works and doesn’t work with state and local government policies for business/industry, and an observation on low taxes vs. The evening began with a catered meal prepared by the American Legion Auxiliary, and desserts made by Main Street Bakery in Medaryville. The local economic summit, organized by the Pulaski County Economic Development Commission, has been on hiatus the past two years due to the pandemic.
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