Economics Going Forward
Katy, Texas Chamber of Commerce

Barron L. Edmonson
AIU Online Economics Going Forward
Katy, Texas Chamber of Commerce

In the United States of America, we have faced many obstacles and difficulties when it comes to our economy. At the beginning of 2009, job growth was down. From 2010 until this present moment we have seen steady job growth and a minor decrease in the unemployment rate. In others words people are starting to find jobs and spend money. This report will show you some of the trends associated with the US economy and it will explain how this information will affect your local economic development. Gross Domestic Product (GDP) is defined as the monetary value of all the finished goods and services produced within a country’s borders in a specific time period, mostly calculated on an annual basis. GDP is commonly used as an indicator of the economic health of a country as well as a gauge of a country’s standard of living. (Gross Domestic Product - GDP, 2012) Some of the trends looked at in calculating GDP include, but are not limited to, the unemployment rate, job growth, and federal debt. (Amadeo, 2012) Simply put, do we have enough job growth to handle supply and demand on a local, state, and federal level?
GDP is calculated by using a simple formula. GDP = C+G+I+NX. “C” represents consumption which is defined as the final purchase of a finished good or commodity. “G” represents the sum of government spending. “I” is the sum of all the country’s business spending on capital. “NX” is the nation’s total exports- total imports. (NX=Exports-Imports) (Gross Domestic Product - GDP, 2012) It is important to note that if you are calculating GDP you must take into account measures for Real GDP.
Real GDP is defined as an inflation-adjusted measure that reflects the value of all goods and services produced in a given year, expressed in base-year prices. Often referred to as "constant-price", "inflation-corrected" GDP or "constant dollar GDP". Unlike nominal GDP, real GDP can account for changes in the price level, and provide a more accurate figure. (Real Gross Domestic Product (GDP), 2012) This is important for those of you on the chamber who own business and have the opportunity to add to job growth. By doing so, you are creating a positive increase to GDP.
Now, how does this tie into the City of Katy’s economic growth? The City of Katy has seen a projected population growth of 21.45% since the year 2008. (Pop-Facts: Demographic Snapshot Report, 2012) Even though there was an increase in population, this was the lowest increase over a four year time frame. (Pop-Facts: Demographic Snapshot Report, 2012) This fact about the estimated population growth also tells us that job growth in Katy will be slow at best. Right now the US unemployment rate is at 7.8% (Obama's economy: A snapshot, 2012)As of August 2012, the Texas unemployment rate was 7.1%. (United States Department of Labor, 2012) This statistic tells us that there are people in Texas looking for jobs. Katy has contributed a 3.6% increase to the job market in Texas with the average income in Katy being $54,991. (Employment Statistics, 2012)
The statistics show that in the city of Katy, there are a great deal of jobs that would require one to have a higher level learning degree, i.e. Bachelors, Masters etc. If you are to grow your economy, you must invest in creating funding for secondary learning or certificate training. If your population is to thrive, they must be taught how to run your business efficiently. Katy has a huge retail market that needs trained managers and workers. With a focus on training and development you could see a positive increase in job growth as well as consumption.
In summation, the facts are very clear. Unemployment has plagued our nation and has trickled down to the state level. It is imperative that in this community, the citizens are properly trained for the jobs that are created and proper leadership is developed to drive the consumption of the consumers both in this community and those that come to shop in our community as well. Works Cited
Amadeo, K. (2012, October). About.com. Retrieved from About.com US Economy: http://useconomy.about.com/od/economicindicators/u/economic_indicators_trends.htm
Employment Statistics. (2012, October). Retrieved from Katy Area Chamber Of Commerce: http://www.katychamber.com/BusinessResources/EmploymentStatistics.aspx
Gross Domestic Product - GDP. (2012, October). Retrieved from www.investopedia.com: http://www.investopedia.com/terms/g/gdp.asp
Obama's economy: A snapshot. (2012, October). Retrieved from CNN Money: Http://money.cnn.com/galleries/2012/news/econ,y/1206/gallery.Obama-economy/2html
Pop-Facts: Demographic Snapshot Report. (2012, Oct). Retrieved from Katy Area Chamber of Commerce: http://www.katychamber.com/portals/0/pdf/Demographic%20Snapshot%202008.pdf
Real Gross Domestic Product (GDP). (2012, October). Retrieved from www.investopedia.com: http://www.investopedia.com/terms/r/realgdp.asp#axzz29K60jU00
United States Department of Labor. (2012, October). Retrieved from Bureau of LAbor and Statistics: http://www.bls.gov/web/laus/laumstrk.htm