Monroe County vs. Alabama Comparative Trends Analysis: Per Capita Personal Income Growth and Change, 1969-2022 Introduction Monroe County: 2022 PCI = $41,177 2022 Percent of State = 80.87% Alabama: 2022 PCI = $50,916 Per Capita Income (PCI) is one of the most widely used indicators for gauging the economic performance and changing fortunes of local economies. It is used as a yardstick to assess the economic well being of a region's residents and the quality of consumer markets. It serves as a barometer for calibrating the economic performance of a region over time and to judge differences in relative economic prosperity between regions. Shifting trends in local per capita income growth have important social and political ramifications and significant implications in formulating local economic development strategies and initiatives. Data Definition: This measure of income is calculated as the total personal income of the residents of an area divided by the population of the area. Per capita personal income is often used as an indicator of consumers' purchasing power and of the economic well-being of the residents of an area. Personal income is measured as a flow throughout the year, while the measurement of population is at one point in mid-year. Therefore, per capita income is distorted if a significant change in population occurs during the year. For smaller counties in particular, per capita income in any given year may be exceptionally high or low for the short run because of unusual local conditions, such as a bumper crop, a catastrophe, or a major construction project as the building of a dam or nuclear power plant. Farm incomes are notorious for being especially volatile year-to-year, owing to changing weather, commodity market conditions, and alterations in government programs. Therefore, the per capita income of farm-dependent counties may exhibit sharp fluctuations over time. The presence of large institutional populations--such as residents attending a local college or the residents of a local prison or state mental institution--can significantly lower the per capita income estimates of an area. Such results may not reflect the relative economic well being of the non-institutional population and may mislead if care is not given to their interpretation. Monroe County Per Capita Personal Income, 1970-2022 Current vs. Constant Dollars Figure 1. Figure 1 depicts Monroe County's annual per capita personal income over 1970-2022 in current and constant (2017) dollars. Constant dollar measurements remove the effects of inflation. They allow for comparison of changes in the real purchasing power of Monroe County over time. When measured in current dollars, Monroe County's per capita personal income increased 1,670.82%, from $2,325 in 1970 to $41,177 in 2022. When measured in constant 2017 dollars to adjust for inflation, it advanced 201.63%, from $11,764 in 1970 to $35,484 in 2022. Real Per Capita Personal Income, 1969-2022 Figure 2. Figure 2 traces Monroe County's and Alabama's annual real per capita personal income for the period 1969-2022 to illustrate real per capita personal income patterns over time. During this 54-year period, Monroe County's real per capita personal income rose from $10,693 in 1969 to $35,484 in 2022, for a net gain of $24,791, or 231.84%. In comparison, Alabama's real per capita personal income increased from $14,991 in 1969 to $43,877 in 2022, for a net gain of $28,886, or 192.69%. Real Per Capita Personal Income Indices (1969=100): 1969-2022 Figure 3. Figure 3 shows Monroe County's real per capita personal income growth in a broader context by offering direct comparisons across time with Alabama, the United States. The growth indices shown here express each region's real per capita personal income in 1969 as a base figure of 100, and the real per capita personal incomes in later years as a percentage of the 1969 base figure. This method allows for more direct comparison of differences in real per capita personal income growth between regions that may differ vastly in size. Monroe County's overall real per capita personal income growth was 231.84% over 1969-2022 outpaced Alabama's increase of 192.69%, and outpaced the United States' increase of 171.04%. Per Capita Personal Income as a Percent of the U.S. Average: 1969-2022 Figure 4. Figure 4 portrays the trends for per capita personal income relative to the national average by tracing Monroe County and Alabama per capita personal income as a percent of the national average over 1969-2022. In 1969, Monroe County's per capita personal income amounted to 51.37% of the national average; in 2022, it approximated 62.89%. Similarly, in 1969, Alabama's per capita personal income totaled 72.02% of the national average; in 2022, it consisted of 77.77%. Monroe County Real Per Capita Personal Income: Annual Percent Change, 1970-2022 Figure 5. Figure 5 highlights the short-run pattern of Monroe County's real per capita personal income growth by tracking the year-to-year percent change over 1970-2022. The average annual percent change for the entire 53-year period is also illustrated on this chart to provide a benchmark for gauging periods of relative high--and relative low--growth against the backdrop of the long-term average. On average, Monroe County's real per capita personal income grew at an annual rate of 2.39% over 1970-2022. The county posted its highest growth in 1978 (21.44%) and posted its lowest growth in 1980 (-8.30%). In 2022, Monroe County's real per capita personal income declined by -8.14% Monroe County Real Per Capita Personal Income: Annual Percent Change and Decade Averages Over 1970-2022 Figure 6. Over the past five decades some counties have experienced extreme swings in growth, and often such swings have tended to coincide with the decades themselves. Figure 6 again depicts the annual percent change in Monroe County's real per capita personal income since 1970, but this time they are displayed with average growth rates for the decade of the 1970s, 1980s, 1990s, 2000s, 2010s, and 2020-2022. During the 1970s, Monroe County's annual real per capita personal income growth rate averaged 5.31%. It averaged 1.70% in the 1980s, 2.59% throughout the 1990s, 1.14% in the 2000s, 1.43% in the 2010s, 1.66% thus far this decade (2020-2022). Real Per Capita Personal Income Growth: Average Annual Percent Change by Decade Figure 7. Figure 7 compares the decade average growth rates for Monroe County noted in the previous graph with the corresponding decade averages for Alabama and the nation. As the chart reveals, Monroe County's average annual real per capita personal income growth topped Alabama's average throughout the 1970s (5.31% vs. 3.30%), lagged Alabama's average during the 1980s (1.70% vs. 2.38%), outperformed Alabama's average during the 1990s (2.59% vs. 2.16%), trailed Alabama's average in the 2000s (1.14% vs. 1.30%), outperformed Alabama's average during the 2010s (1.43% vs. 1.23%), and lagged Alabama's average over the 3 year period of the current decade, 2020-2022 (1.66% vs. 1.94%). Finally, relative to nationwide real per capita personal income growth trends, Monroe County outgained the nation throughout the 1970s (5.31% vs. 2.37%), fell below the nation over the 1980s (1.70% vs. 2.19%), registered above the nation in the 1990s (2.59% vs. 2.01%), outgained the nation throughout the 2000s (1.14% vs. 1.10%), posted below the nation in the 2010s (1.43% vs. 1.97%), and fell below the nation over 2020-2022 (1.66% vs. 1.78%).
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