All Employment Is Local: Examining the Impact of the American Recovery and Revitalization (ARRA) Act on Two Missouri Counties (as Well as an Analysis of Missouri Tax Credit Programs)

Abstract

Employment is explored in the aftermath of the most recent “Great Recession”—the lingering effects are still being felt. Employment growth largely depends on what happens locally. This article examines the American Recovery and Revitalization Act (ARRA) often thought of as the Economic Stimulus Plan of the Obama Administration and its impact on two adjacent Missouri counties (Ste. Genevieve and Perry). County particulars are examined which impact how to understand employment in both counties. Furthermore, the issue of jobs created versus jobs retained is examined, as well as the difficulties of measuring the multiplier effect. Finally, Missouri tax credit programs are explored, again demonstrating the difficulties of measuring the multiplier effect as well as the cost effectiveness of these state government programs. Census data from the “County Business Patterns” are used to analyze local employment situations. Small Business issues related to local situations are addressed since they are essential to “jump starting” local economies