IBJOpinion

MARCUS: Fewer Hoosier children means less retail

Morton Marcus
March 12, 2011
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Morton Marcus

We were prepared for Indiana’s mediocre results from the 2010 census. Our population growth (6.6 percent) over the decade 2000 to 2010 ranked 31st in the nation. We could celebrate being not too far from the top of the bottom half of the states.

What brought joy to the Hoosier hearth was the news that we topped Wisconsin’s 6.0-percent growth, Illinois’ 3.3, Ohio’s 1.6, and pitiful Michigan’s decline (-0.6 percent). Doing better than one’s poor neighbors stands as a weak triumph.

If anything rattled our teeth, it was the concentration of growth in Marion and four adjacent counties (Hamilton, Hendricks, Johnson and Hancock). These five counties alone captured more than 53 percent of the state’s growth. Of the remaining 87 counties, 29 lost population. The biggest losers in number of people were Grant (Marion), Howard (Kokomo), Wayne (Richmond), Wabash (Wabash) and Cass (Logansport) counties. Blackford County (Hartford City), at -9.1 percent, had the largest decline relative to the state.

Relative growth (or decline) does matter. What’s good for the Indianapolis metropolitan area is now better than before for all of Indiana. As the Indianapolis metro area approaches 26 percent of the state’s population, who is losing out? Even though Lake County gained 11,400 people and Vanderburgh gained 7,800, neither kept pace with the state’s growth rate. These two counties, along with Madison, Delaware, LaPorte and Vigo, emerged from the last decade as relative losers in the population derby.

After the Legislature completes redistricting next month, more members of the Indiana General Assembly than before will have the Indianapolis area on their minds. When the state allocates goodies according to population, the outlands will get a lesser share. Business activity, particularly health and financial services, will concentrate still more where people are most numerous.

Hidden in all these data lies a truth that may be of great significance. From 2000 to 2010, the adult population of the state grew faster (8.2 percent) than the population under age 18 (2.2 percent). Indiana added 369,400 adults, compared with just 33,900 children, a ratio of nearly 11 to 1. This imbalance was hardly uniform, but its consequences are important for all of us.

When more data are released, we’ll know the full story, but we can already identify important patterns. In only 24 of our 92 counties did both the adult and child populations increase. For example, Clark County added 13,000 people, of whom 11,000 were adults and just 2,000 were children. In 68 counties, however, the number of children declined.

Children, as any parent will attest, are the drivers of our economy. They cause the washing machine and dryer to be bought. They necessitate the larger, safer automobile. Simply put, children are the creators of debt and increased consumption spending.

Fewer children reduce retail trade. Schools acquire empty rooms and playgrounds see less Little League ball played. Neighbors are less inclined to know one another in the absence of children. Communities, as we have known them, change. Some crumble, others manage an awkward transformation to residential areas with limited liveliness.

The economic prospects of communities with fewer children are poor. Where youth initiates change, adults often succumb to the temptations of the familiar. It is difficult to convince town elders that more opportunities for social engagement are necessary to sustain commercial vitality. Carmel, with its new theaters and concert facilities, may be the best example in Indiana of a smaller city’s becoming a place for adults.•

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Marcus taught economics for more than 30 years at Indiana University and is the former director of IU’s Business Research Center. His column appears weekly. He can be reached at mmarcus@ibj.com.


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  1. Someone mentioned a green roof. Every designer of a new urban building should be required to at least explore the feasibility of a green roof. The ability to cut carbon dioxide, save precious rainwater (drought this summer??) and re-use grey water, cool the building cheaper, and improve the view for neighbors, should be, not only the good neighbor thing to do, it should be the responsible neighbor thing to do. Too bad the city didn't require it when they gave up downtown green space for the Simon Building. Surprised they aren't requiring it now.

  2. About the same means down, like the TV ratings.

    My favorite tradition that needs to be brought back is the 25/8 rule.

  3. Your stats are incorrect. The 85k Government employees working in Marion County includes all government workers in Marion county. That is state, federal, non profit agencies, city and county. The stats the article list is the number of employees for all of the city/county employees and it is correct. That number includes the library, airport, convention center, and so on. The policy of extending benefits to domestic partners is consistent with private sector companies of the same size. Isn't the mantra of most conservatives "run the government like a business."

    Also, too say the "fiscal proposil is huge" without considering the actuarial factors involved is a bit of an overstatement. We really don't know if it is huge or not. If all of the people added to the plan are healthy and don't have claims then it could bring cost done or hold them neutral.

  4. There are 85,346 government employees in Marion county according to Stats Indiana.

    My understanding is that this proposal covers not only same sex partners and children, but opposite same sex partners who are not married and any kids.

    It also covers all city and county employees, plus municipal corporations which use city/county benefits packages including Health and Hospital Corporation (Wishard), Indianapolis Airport Authority, Indianapolis Convention Center,Lucas Oil,Bankers Life, Indianapolis Marion County Library, and Indianapolis Public Transportation Corporation (IndyGo).

    Certainly Indianapolis Public Schools will also want more benefits also.

    The fiscal cost on this proposal is huge.

  5. I think a lof people forget about the pressure put on the face of an organization. They also don't see them staying in their office until midnight, missing thier childrens baseball games and not being able to sleep b/c of the stress. We live in the land of opportunity, everyone has a chance to get that money

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