WichitaLiberty.TV: Dr. Tom G. Palmer and the causes of wealth

In this episode of WichitaLiberty.TV: Dr. Tom G. Palmer of Atlas Network joins Bob Weeks to explain why the usual approach to foreign aid isn’t working, and what Atlas Network is doing to change the lives of the poor across the world. View below, or click here to view at YouTube. Episode 189, broadcast March 24, 2018.


Kansas personal income

Personal income in Kansas rose in 2017 at a rate one-third that of the nation.

Personal income in Kansas for 2017 was $138,673 million, according to preliminary estimates released today by the Bureau of Economic Analysis, an agency of the United States Department of Commerce.

Change in personal income, 2016 to 2017. Click for a larger version and the BEA press release.
That is an increase of 1.0 percent from 2016, when personal income was $137,305 million. These are current dollars, not adjusted for inflation. 1

The growth for Kansas — 1.0 percent — ranked 47th among the states. For the nation, personal income rose by 3.1 percent, and for the Plains states, it rose by 1.7 percent.

BEA gives the population of Kansas as 2,913,000, with per capita personal income at $47,603. That ranks 24th among the states, and is 94 percent of the value of personal income for the entire nation, which is $50,392.

Personal income, according to BEA, is “the income received by, or on behalf of, all persons from all sources: from participation as laborers in production, from owning a home or business, from the ownership of financial assets, and from government and business in the form of transfers. It includes income from domestic sources as well as the rest of world. It does not include realized or unrealized capital gains or losses.” 2

For Kansas, there were these notable changes in earnings:
Farm: Down by 0.66 percent
Non-durable goods manufacturing: Up by 0.23 percent
Wholesale trade: Up by 0.11 percent
Transportation and warehousing: Up by 0.15 percent
Management of companies and enterprise: Up by 0.15 percent
Health care and social assistance: Up by 0.23 percent
State and local government: Up by 0.21 percent


  1. Bureau of Economic Analysis. State Personal Income: 2017. Available at https://www.bea.gov/newsreleases/regional/spi/sqpi_newsrelease.htm.
  2. Ibid.

Wichita city council public agenda needs reform

Recent use of the Wichita City Council public agenda has highlighted the need for reform.

At meetings of the Wichita city council, non-council members generally have two opportunities to address the council members. One is as each agenda item is considered. There is (usually) an opportunity to speak only on that topic. If you want to speak about something else, there is also an opportunity near the start of the meeting called the public agenda.

The council has policies regarding the public agenda, particularly the need to sign up before the meeting, and far in advance: “Members of the public desiring to present matters to the council on the public agenda must submit a request in writing to the office of the city manager prior to twelve noon on the Tuesday preceding the council meeting.” 1

The practical problem is this: If the council takes action on Tuesday that inspires someone to address the council on the public agenda, that probably can’t happen at the next council meeting, if the policy is followed as stated. For one thing, the council might not take action until after noon, so the deadline for speaking at the next meeting has passed by then. But more likely and most importantly, many people are not able to watch the council meeting live. Instead, they may view a delayed broadcast on cable television, watch the meeting through the city’s website, or read news reporting. By the time any of these happen, the deadline for the next meeting’s public agenda has passed.

Why is this important? In Kansas cities of the first class, a law is not “officially passed” until it has passed on “second reading.” 2 This is a procedure whereby an ordinance that has passed “first reading” is voted upon again, and if it passes, it then may become law. Often second reading happens at the next council meeting, one week later. (“First reading” is what people see in meetings and is reported in news stories. A proposed ordinance is explained, usually by city staff. Then there may be discussion from the public and among council members, and then a vote.)

So if a person has a problem with an ordinance that passed first reading and wants to speak to the council before the second reading of the ordinance, that probably won’t be possible, for timing reasons explained above.

There’s the related issue that the second reading is placed on the consent agenda. A consent agenda is a group of items — perhaps as many as two dozen or so — that are voted on in bulk with a single vote. An item on a consent agenda will be discussed only if a council member requests the item to be “pulled.” If that is done, the item will be discussed. Then it might be withdrawn, voted on by itself, or folded back into the consent agenda with the other items. Generally, consent agenda items are considered by the city to be routine and non-controversial, but that is not always the case.

It is very rare for the second reading of an ordinance to be “pulled” from a consent agenda for discussion and separate vote. It may have happened, and if so, I can’t recall when. So even if you spoke on the public agenda regarding an ordinance at the meeting where that same ordinance appears on second reading, your speech might not mean much unless a council member “pulls” the item from the consent agenda for discussion and possibly, an individual vote.

By the way, one speaker said that the council’s policies meant there could be only 20 speakers per month. I think the arithmetic behind this comes from the council’s policy of five speakers per meeting and four meetings per month. It’s actually less than that. As explained on the council’s web site, the fourth meeting of a month is a “workshop” meeting. At these meetings the council considers consent agenda items only, along with information presentations (the workshop). There is no public agenda at these fourth Tuesday meetings, and the council doesn’t meet on fifth Tuesdays.

(You may be wondering: Does second reading ever happen in the fourth Tuesday meetings where there is no public agenda? Yes. It happened on January 23, 2018, for example.)

Would reform of the council’s public agenda make a difference? Do council members listen to and consider the opinions of speakers on the public agenda?

That’s a good question!


  1. Wichita City Council. INSTRUCTIONS FOR PUBLIC AGENDA REQUEST FORMS. Accessed March 20, 2018. Available at http://www.wichita.gov/Council/CityCouncilDocument/PUBLIC%20AGENDA%20REQUEST%20FORM.pdf.
  2. Myers, Bob. Drafting of City Ordinances and Resolutions In Kansas. Available at http://webs.wichita.edu/depttools/depttoolsmemberfiles/hugowall/Outline%20-%20Res%20and%20Ord%20Drafting.pdf.

Employment in metropolitan areas

An interactive visualization of labor force, employment, and unemployment rate for all metropolitan areas in the United States.

The example from the visualization shown below shows the Wichita Metropolitan Statistical Area and All Metro Areas. Data is through January 2018. Of note regarding Wichita:

  • Since the Great Recession ended, the unemployment rate in Wichita has fallen, as it has nationwide.
  • At the same time, employment (the number of people working) in Wichita, has been steady or rising slightly. Nationwide, employment has been growing.
  • At the same time, the civilian labor force in Wichita has been mostly falling, while rising nationwide.

When using the visualization you can adjust the date range to focus on recent years, or any other time period.

To learn about the data included and to use the visualization, click on Civilian labor force and unemployment by metropolitan area.

Example from the visualization., showing Wichita and All metro areas Click for larger.

WichitaLiberty.TV: John Todd and the fight against blight

In this episode of WichitaLiberty.TV: John Todd explains how cities in Kansas are seeking additional power to seize property, and tells us why we should oppose this legislation. View below, or click here to view at YouTube. Episode 188, broadcast March 17, 2018.


Wichita employment down, year-over-year

At a time Wichita leaders promote forward momentum in the Wichita economy, year-over-year employment has fallen.

Today the Bureau of Labor Statistics released employment statistics through January 2018. 1

One of the tables released is “Over-the-year change in total nonfarm employment for metropolitan areas, not seasonally adjusted,” which shows changes in jobs from January 2017 to January 2018. 2 For this time period for the Wichita metropolitan area, the number of nonfarm jobs fell from 292.1 thousand to 291.1 thousand, a decline of 1,000 jobs or 0.3 percent.

Of 382 metropolitan areas, 57 performed worse than did Wichita. For these metro areas, the average growth in jobs was 1.15 percent.

Over the same period the unemployment rate in the Wichita MSA fell from 4.6 percent to 3.7 percent.


  1. Bureau of Labor Statistics. Metropolitan Area Employment and Unemployment Summary. Available at https://www.bls.gov/news.release/metro.nr0.htm.
  2. Bureau of Labor Statistics. Over-the-year change in total nonfarm employment for metropolitan areas, not seasonally adjusted. Available at https://www.bls.gov/web/metro/metro_oty_change.htm.

Employment in the states

An interactive visualization of the civilian labor force, employment, and unemployment, for each state.

In the example from the visualization shown below, which shows indexed employment growth, you can see that Kansas (the highlighted line) is not faring well. There aren’t many states whose lines are below that of Kansas.

This data is from the Bureau of Labor Statistics, a division of the United States Department of Labor. It is current through January 2018.

Click here to use the visualization and to learn about the meaning of the data series. There are four views of the data, accessible through the tabs along the top. You may select a time frame and any combination of states. By clicking on the color legend, you can emphasize the lines for one or more states. (Ctrl+click to add more than one line.)

Employment status of the civilian noninstitutional population, example showing Kansas highlighted. Click for larger.

Sedgwick County’s David Dennis on economic development

Following the Wichita Mayor, the Chair of the Sedgwick County Commission speaks on economic development.

Last week Sedgwick County Commissioner David Dennis penned a column for the Wichita Eagle praising the county’s efforts in economic development. 1 Dennis is also chair of the commission this year.

In his column, the commissioner wrote: “Economic development is a key topic for the Board of County Commissioners and for me in particular. Right now we have a lot of momentum to make our community a more attractive place for people and businesses.”

This emphasis on the word “momentum” seems to be a fad among Wichita’s government leaders. More about this later.

Dennis also wrote: “Traditional governmental incentives are a thing of the past. There are no more blank checks from Sedgwick County for businesses.”

Except: The county participates in incentive programs that allow companies like Spirit to escape paying taxes, and when you don’t have to pay taxes, that’s the same economic effect as someone giving you cash to pay those taxes. Spirit Aerosystems will receive Industrial Revenue Bonds, which are not a loan of money to Spirit, but allow the company to avoid paying property taxes and sales taxes. 2 3 These incentives are a cost to the county and other units of government, and are as good as cash to Spirit. (For this and many other projects the county is not involved in the approval of the IRB program, but it doesn’t object, and it sees its tacit approval as part of its partnership with the City of Wichita.)

Besides this, the county engages in traditional incentives — almost like a blank check — but disguises them. In this case, for example, the county is contributing $7 million towards the construction of a building exclusively for Spirit’s use. How will the county pay for that? The memorandum that the county agreed to states: “The county participation of $7 million US is anticipated to be available cash.” 4

You might be wondering if the county is treating this contribution as an investment that a business would make, where it would earn back its investment plus a profit by collecting rent from Spirit. After all, county leaders tell us they want to operate government like a business.

But, you’d be wrong if you thought that. The memorandum specifies the rent as $1 per year. Not $1 per square foot per year, but $1 per year for the entire building. Furthermore, at the end of 20 years, Spirit will have the option to purchase the property for $1.

There’s really no way to characterize this transaction other than as a multi-million giveaway to Spirit. Not directly as a blank check or cash, but in a roundabout way that costs the county and benefits Spirit in the same way as cash.

I can understand how Dennis and others like Wichita Mayor Jeff Longwell want to convince the public that they are no longer dishing out cash. Often, the public doesn’t like that. So instead they do the same thing in roundabout ways like leasing a building for $1 per year or paying millions in cash for a “parking easement” for which the city has no real use. 5 Chairman Dennis and others hope you won’t notice, but these leaders would be more credible if they didn’t try to obfuscate the truth.

Sedgwick County jobs. Click for larger.
Sedgwick County jobs, change from prior year. Click for larger.
At the end of his column, Dennis wrote: “There is a lot of momentum and forward movement in our community right now and I’m encouraged to see what we can achieve as a team.”

There’s that word again: momentum. Coincidently, shortly after this column was published, the Bureau of Labor Statistics published an update to the Quarterly Census of Employment and Wages. It shows the number of jobs in Sedgwick County declining. This update was released after Dennis wrote his column, but as can be seen from the nearby charts, the slowdown in Sedgwick County jobs and the Wichita-area economy is not a new trend.

If Dennis really believes our economy has “momentum and forward movement,” it is my sincere hope that he is simply uninformed or misinformed about these statistics. Because if he is aware, we can only conclude that he is something else that is worse than being merely ignorant.


  1. David Dennis. Sedgwick County part of drive to strengthen area workforce. Wichita Eagle, March 5, 2018. Available at http://www.kansas.com/opinion/opn-columns-blogs/article203559734.html.
  2. Weeks, Bob. Industrial revenue bonds in Kansas. Available at https://wichitaliberty.org/kansas-government/industrial-revenue-bonds-kansas/.
  3. Weeks, Bob. Spirit expands in Wichita. Available at https://wichitaliberty.org/wichita-government/spirit-expands-wichita/.
  5. Weeks, Bob. More Cargill incentives from Wichita detailed. Available at https://wichitaliberty.org/wichita-government/cargill-incentives-from-wichita-detailed/.

From Pachyderm: Can Wichita Elect a Governor?

From the Wichita Pachyderm Club: Dr. Russell Arben Fox, who is Professor of Political Science at Friends University. His topic was “Can Wichita Elect a Governor? Musings on the Kansas Political Landscape.”

This is an audio presentation. The accompanying slides are available here. Recorded on March 9, 2018 before a live audience at the Wichita Pachyderm Club.

Mayor Longwell’s pep talk

A column written by Wichita Mayor Jeff Longwell ignores the reality of Wichita’s economy.

This week Wichita Mayor Jeff Longwell contributed a column to the Wichita Eagle that seems to defy economic reality. 1

For example, he wrote how Wichita is a “thriving city in a brand new age of possibility.” Construction and change is everywhere, he said.

The problem is this: Even though there seems to be a lot of construction and change, Wichita isn’t thriving.

There are several ways to gauge the economic health of a city. Jobs are probably most important, especially to politicians, and jobs data is available on a frequent and timely basis. And when we look at Wichita’s growth in nonfarm jobs, we see Wichita lagging far behind the nation.

Wichita and national nonfarm employment. Click for larger.
Wichita and national nonfarm employment, ratio. Click for larger.
It wasn’t always that way. Nearby charts show the ratio of Wichita job growth to the nation. When the line is above the value one, it means Wichita was outpacing the nation.

Wichita has done that many times — growing faster than the nation. But that hasn’t been the case recently. In fact, as the charts show, the ratio of Wichita to the nation is sinking. Wichita is falling farther behind.

But despite this evidence, that mayor wrote, “In the coming years, we’re going to continue our growth pattern, and we need passionate individuals supporting and expanding upon our efforts.”

I sincerely hope the mayor is not aware of the poor performance of the Wichita-area economy. Because if he is aware, and he promises to “continue our growth pattern,” we’re in for continued trouble. Did you know that the Wichita-area economy shrank from 2015 to 2016? That is, we produced fewer goods and services in 2016 than in 2015, after accounting for inflation. 2 Is this the growth pattern the mayor promises to continue?

Finally, the mayor issued this plea: “We can’t be complacent in our comfort. We must reconcile our vibrant history with a limitless future. Let’s shed the stigma of what we have been and embrace the vibrant mantle of what we’re becoming.”

First, anyone who’s complacently comfortable is uninformed or unbelieving of the statistics regarding the Wichita economy.

Second, “what we’re becoming” is a low-growth area, falling behind the rest of the country, with the gap growing. The opposite of “vibrant.”

Then, the “stigma of what we have been” describes Mayor Longwell and other long-time officeholders and bureaucrats. It is they who have taken responsibility for the development of the Wichita-area economy. It is their decisions and policies that have led to our slow growth. They are eager to take credit for the successes we do have. But as the mayor’s ill-informed article shows, they are not willing to accept responsibility for failure, much less to even acknowledge the truth.

For other measures of the Wichita economy, see:


  1. Longwell, Jeff. All Wichitans have a part in pushing forward. Wichita Eagle, March 4, 2018. Available at http://www.kansas.com/opinion/opn-columns-blogs/article203559924.html.
  2. Weeks, Bob. Wichita economy shrinks. Available at https://wichitaliberty.org/economics/wichita-economy-shrinks/.

Kansas government data may not be available

There is a movement to increase the transparency of government in Kansas, but there’s much to be done, starting with attitudes.

One of the major economic development programs in Kansas is PEAK, or Promoting Employment Across Kansas. 1 It provides benefits to companies when they expand their operations in Kansas, or sometimes when they merely threaten to leave. The recent expansion by Spirit AeroSystems is reported to benefit from $23.5 million in PEAK cash. 2

But finding out how much PEAK benefits are awarded each year is difficult, even though the state relies heavily on this program. It also appears that the Kansas Department of Commerce, the agency that awards and administers PEAK, isn’t aware of how many programs, and at what cost, have been authorized.

At one time a summary of PEAK data was readily available from the state. It covered fiscal years 2010 through 2015. 3 My inquiries late last year to the PEAK program manager for updated information were fruitless, despite many email and telephone messages. None were returned.

But a request to the interim director was answered. The answer is that the data through 2015 was a one-time effort, and there are no reports similar to that with recent data.

The fact that there is no recent data is remarkable. We must wonder if the Department of Commerce cares about things like this, because collecting this data as projects are awarded is not difficult. There aren’t many projects awarded. For the period 2010 through 2015, there were 68 PEAK projects awarded. And just a handful of data items need recording for each project.

But this isn’t done.

I made a request for recent data on PEAK awards, asking for the same data in the previous report: Company Name, Effective Date, Location (County), Proposed Annual Benefit, Benefit Term (Yrs), New or Retained Jobs, Project Payroll, and Additional Project Capital Investment. The response confirmed there is no simple report with the relevant data. I was offered the opportunity to purchase copes of all recent PEAK agreements, estimated to cost $750 to $1,200. Further, these documents would not contain all the data I asked for.

Who is managing?

As part of four initiatives to increase government transparency in Kansas, Governor Jeff Colyer told the legislature, “Third, I will implement performance metrics for Cabinet Agencies so Kansans can see how we perform.” 4 My experience with the Department of Commerce indicates there’s a long way to go. Agencies are not capturing and recording basic data.

Even if the Department of Commerce was capturing this data, there’s still much more analysis to perform. The data I asked for was simply the project parameters at the time PEAK benefits are awarded. The real question is this: Are the projected benefits actually realized?

There ought to be a law

There is a bill this year that would require several state agencies to report on the many programs they administer. It’s titled “HB 2753: An act concerning taxation; relating to income tax credits and sales tax exemptions; periodic review, reports to certain legislative committees.” 5

Kansas taxpayers might have thought this basic management of our tax-funded programs we already in place. It’s especially troubling in that the cost of this management is small. The fiscal note for the bill tells us these agencies already have the capacity to perform this work: “The Insurance Department, Department of Commerce, and Department of Revenue indicate that the administrative costs associated with implementing the provisions of HB 2753 would be negligible and could be absorbed within existing resources. Each agency would be responsible to collect and organize information regarding certain tax credits, incentives, and exemptions on a yearly basis.”


  1. Weeks, Bob. PEAK, or Promoting Employment Across Kansas. Available at https://wichitaliberty.org/kansas-government/peak-promoting-employment-across-kansas/.
  2. Jerry Siebenmark. New facility part of Spirit’s new jobs, expansion plan. Available at http://www.kansas.com/news/business/aviation/article201082884.html.
  3. Weeks, Bob. PEAK benefits across Kansas. Available at https://wichitaliberty.org/kansas-government/peak-benefits-across-kansas/.
  4. Governor Jeff Colyer’s Joint Address, February 8, 2018. Available at https://governor.kansas.gov/governor-jeff-colyers-joint-address/.
  5. Kansas Legislature. HB 2753: Review of tax credits, tax exemptions and economic development programs. Available at http://www.kslegislature.org/li/b2017_18/measures/hb2753/.

Property under attack in Kansas

Local governments in Kansas are again seeking expanded power to seize property.

In Kansas, officials of many city governments feel they don’t have enough power to deal with blight. This year, as in years past, there is legislation to expand the power of cities to seize property. 1 2

John Todd, along with Paul Soutar, made a video to explain the bill and the surrounding issues. It’s just five minutes in length. View it below, or click here to view at YouTube. Todd’s written testimony to the Kansas Legisalture has photographs and examples. It may be viewed here.


Presently, tools are in place. Cities already have much power to deal with blight and related problems. Last year Todd and I, along with others, had a luncheon meeting with a Kansas Senator who voted in favor of expanding cities’ powers. When we told him of our opposition, he asked questions like, “Well, don’t you want to fight blight? What will cities do to fight blight without this bill?” When we listed and explained the many tools cities already have, he said that he hadn’t been told of these. This is evidence that this bill is not needed. It’s also evidence of the ways cities try to increase their powers at the expense of the rights of people. 3

The Governor’s veto. A similar bill passed the legislature in 2016. Governor Brownback vetoed that bill, explaining, “The right to private property serves as a central pillar of the American constitutional tradition.” 4

The Governor’s veto provoked a response from Wichita government officials. It let us know that they are not as respectful of fundamental rights as was Brownback. 5

For example, in remarks from the bench, Wichita City Council Member Pete Meitzner (district 2, east Wichita) said there is no intent to be “aggressive in taking people’s property.” 6 But expanding the power of government — aggression, in other word — is what the bill does. Otherwise, why the need for the bill with its new methods and powers of taking property?

And once government is granted new powers, government nearly always finds ways to expand the power and put it to new uses. Even if we believe Meitzner — and we should not — he will not always be in office. Others will follow him who may not claim to be so wise and restrained in the use of government power.

Government expands and liberty recedes. Government continuously seeks new ways to expand its powers through enabling concepts like blight. Did you know the entire suburban town of Andover is blighted? 7 Across the country, when governments find they can take property with novel and creative interpretations of blight, they do so. 8

It’s easy to sense the frustration of government officials like Wichita Mayor Jeff Longwell. In his remarks, he asked opponents of SB 338 “what they would do” when confronted with blight. That is a weak argument, but is advanced nonetheless. Everyone has the right — the duty — to oppose bad legislation even if they do not have an alternate solution. Just because someone doesn’t have a solution, that doesn’t mean their criticism is not valid. This is especially true in this matter, as cities already have many tools to deal with blight.


  1. Kansas Legislature. HB 2506. Rehabilitation of abandoned property by cities. Available at http://kslegislature.org/li/b2017_18/measures/hb2506/.
  2. Weeks, Bob. Power of Kansas cities to take property may be expanded. Available at https://wichitaliberty.org/kansas-government/power-kansas-cities-take-property-may-expanded/.
  3. Weeks, Bob. In Kansas, the war on blight continues. Available at https://wichitaliberty.org/kansas-government/kansas-war-blight-continues/.
  4. Weeks, Bob. Governor Brownback steps up for property rights. Available at https://wichitaliberty.org/kansas-government/governor-brownback-steps-property-rights/.
  5. Weeks, Bob. In Wichita, revealing discussion of property rights. Available at https://wichitaliberty.org/kansas-government/wichita-revealing-discussion-property-rights/.
  6. Video. Wichita City Council speaks on blight. Available at wichitaliberty.org/wichita-government/wichita-city-council-speaks-blight/.
  7. Weeks, B. (2012). Andover, a Kansas city overtaken by blight. Voice For Liberty in Wichita. Available at wichitaliberty.org/economics/andover-a-kansas-city-overtaken-by-blight/.
  8. Nicole Gelinas, Eminent Domain as Central Planning. (2015). City Journal. Available at www.city-journal.org/html/eminent-domain-central-planning-13253.html.

Growing the Wichita economy

Wichita leaders are proud of our region’s economic growth. Here are the numbers.

Greater Wichita Partnership is our region’s primary agency responsible for economic development. On its website, it tells us, “We are an organization built upon teamwork and the idea that, when everyone is advancing in the same direction, we can create a powerful force to effect change — and, thanks to our numerous investors and partners, we are.” One of the things GWP says we are doing is “Growing primary jobs.” 1

Recently Greater Wichita Partnership president Jeff Fluhr told a group of young people this:

From the innovation campus at Wichita State University and development along the Arkansas River in downtown, including a new baseball stadium, to the conversations happening now about a new convention center and performing arts facility, Fluhr said the momentum is pushing to keep Wichita on par with the development of other communities around the country.

That development, which has in recent years expanded to incorporate the entire region, is a critical component to attracting and retaining talent — the exact kind of talent in the ICT Millennial Summit crowd. 2

In January Wichita Mayor Jeff Longwell said, “It’s hard to find a time when we’ve had more momentum.” 3

In announcing his candidacy for Sedgwick County Commission, Wichita city council member Wichita City Council Member Pete Meitzner (district 2, east Wichita) said, “We have enjoyed great progress and growth during my two terms as a City Council member and I plan to do my part to assure Sedgwick County is part of this continued success.” 4

Given all this, it ought to be easy to find economic data supporting momentum, progress, and growth. Let’s look at some indicators.

Personal income. For the Wichita metropolitan statistical area, personal income in 2016 rose slightly from the 2015 level, but is still below the 2014 level. In real (inflation-adjusted) dollars, personal income fell in 2016. 5

Personal Income Summary, Wichita, through 2016. Click for larger.

Population. In 1990 Wichita was the 80th largest metropolitan area. In 2016 its ranking had fallen to 87.

Trends of business activity in downtown Wichita. Click for larger.
Downtown Wichita. There’s been a lot of investment in downtown Wichita, both public and private. But since 2008 the trend is fewer business establishments, fewer people working downtown, and lower earnings generated in downtown Wichita. Almost every year these numbers are lower than the year before. This is movement in the wrong direction, the opposite of progress. There may be good news in that the number of people living downtown may be rising, but business activity is declining. 6

Employment. While officials promote the low Wichita-area unemployment rate, there is an alternative interpretation: The September 2017 unemployment rate declined to just about half the January 2011 rate. The number of employed persons rose by 1.2 percent, but the labor force fell by 3.1 percent. If we consider only the unemployment rate, it looks like the Wichita area is prospering. But the unemployment rate hides bad news: The number of jobs increased only slightly, and the labor force fell by a lot. While it’s good that there are more people working, the decline in the labor force is a problem. (More about employment below.) 7

Wichita MSA unemployment through September 2017. Click for larger.

Growth in output. The worst news, however, is that the Wichita-area economy shrank from 2015 to 2016. In real (inflation-adjusted) dollars, the Wichita metropolitan area gross domestic product fell by 1.4 percent. For all metropolitan areas, GDP grew by 1.7 percent. Since 2001, GDP for all metropolitan areas grew by 29.3 percent, while Wichita had 12.3 percent growth. 8

Wichita MSA employment, annual change. Click for larger.
The GDP figures are for 2016, and figures for 2017 won’t be available until September. So what happened in 2017? Could 2017 be the genesis of momentum to drive our economy forward?

While GDP figures aren’t available, jobs numbers are. For the year 2016, total nonfarm employment in the Wichita metropolitan area grew by 0.62 percent. For 2017, the growth rate was 0.56 percent — a slowdown in the rate of job growth.

These job growth figures are far below the rate for the nation, which were 1.79 and 1.58 percent respectively.

Annual change in job growth, Wichita and USA through 2017. Click for larger.

Furthermore, Wichita’s job growth rate in 2016 was lower than 2015’s rate of 1.07 percent. This is momentum in the wrong direction. Nearby charts illustrate. 9

What to do?

You can’t change what you don’t acknowledge.
— Phillip C. McGraw

The failure of the Wichita-area economy to thrive is a tragedy. This is compounded by Wichita leaders failing — at least publicly — to acknowledge this. While we expect people like the mayor, council members, and the chamber of commerce to be cheerleaders for our city, we must wonder: Do these people know the economic statistics, or do they choose to ignore or disbelieve them?

From private conversations with some of these leaders and others, I think it’s a mix of both. Some are simply uninformed, while others are deliberately distorting the truth about the Wichita economy for political or personal gain. The people who are uninformed or misinformed can be educated, but the liars are beyond rehabilitation and should be replaced.


  1. Greater Wichita Partnership. Available at http://www.greaterwichitapartnership.org/about_us/about_us.
  2. Daniel McCoy. ICT Millennial Summit: Wichita is having a moment. Wichita Business Journal, November 30, 3017. Available at https://www.bizjournals.com/wichita/news/2017/11/30/ict-millennial-summit-wichita-is-having-a-moment.html.
  3. Heck, Josh. Emerging Leaders panel offers insight into eco-devo strategies. Available at https://www.bizjournals.com/wichita/news/2018/01/11/emerging-leaders-panel-offers-insight-into-eco.html.
  4. Bill Wilson. Wichita council member unveils bid for county commission. Wichita Business Journal, November 30, 3017. Available at https://www.bizjournals.com/wichita/news/2018/02/13/wichita-council-member-unveils-bid-for-county.html.
  5. Weeks, Bob. Wichita personal income up, a little. Available at https://wichitaliberty.org/wichita-government/wichita-personal-income-up-2016/.
  6. Weeks, Bob. Downtown Wichita business trends. Available at https://wichitaliberty.org/wichita-government/downtown-wichita-business-trends/.
  7. Weeks, Bob. Wichita employment up. Available at https://wichitaliberty.org/wichita-government/wichita-employment-up/.
  8. Weeks, Bob. Wichita economy shrinks. Available at https://wichitaliberty.org/economics/wichita-economy-shrinks/.
  9. In some presentations these figures may differ slightly due to data revisions and methods of aggregation. These differences are small and not material.

WichitaLiberty.TV: What Was Really the Matter with the Kansas Tax Plan

In this episode of WichitaLiberty.TV: Dave Trabert of Kansas Policy Institute joins Bob and Karl to discuss his new book What Was Really the Matter with the Kansas Tax Plan –- The Undoing of a Good Idea. View below, or click here to view at YouTube. Episode 186, broadcast March 3, 2018.


What Was Really the Matter with the Kansas Tax Plan

From Kansas Policy Institute.

What Was Really the Matter with the Kansas Tax Plan

New Book Outlines Tax Lessons from Kansas “Experiment”

Tax relief opponents have repeatedly pointed to the 2012 Kansas tax plan as their primary example of why tax cuts do not work. But, other states like North Carolina, Indiana, and Tennessee contemporaneously, and successfully, cut taxes. What was different about the Kansas experience?

The answer to that question is multi-dimensional according to a new book from Kansas Policy Institute, entitled What Was Really the Matter with the Kansas Tax Plan — The Undoing of a Good Idea. The book covers the six years between the conception of Brownback’s tax cuts in 2011, the tax package being signed into law in 2012 and later repealed with the largest tax hike in state history in 2017. It documents the many mistakes that occurred, a toxic political undercurrent, and several unrelated economic circumstances that negatively impacted the budget and multiple misconceptions along the way.

Author and KPI president Dave Trabert says, “Much of what went wrong was avoidable. We hope citizens and legislators across the nation can learn from the mistakes made in Kansas as they strive to create the best path forward for everyone to achieve prosperity with lower taxes.”

The final chapter of the book is “Lessons Learned” and includes these big lessons:

  1. Don’t cut revenue and increase spending.
  2. Explain why tax relief is necessary (i.e., what are the consequences of not reducing the tax burden).
  3. Develop a comprehensive plan to balance the budget on less tax revenue, with room for the unpredictable but inevitable misfortunes (like plummeting oil and farm commodity prices).
  4. Have the right systems in place, including performance-based budgeting and a reliable revenue estimating process.

To ensure that lawmakers have this information as they work in statehouses around the country, nearly 8,000 complimentary copies are being distributed to every state legislator across the country in partnership with The Heartland Institute.

Danedri Herbert, an experienced journalist currently writing for the online publication “The Sentinel,” co-authored the book and former U.S. Senator Tom Coburn of Oklahoma wrote the Foreword. Coburn writes, “This is a very important book, not only for state and national legislators who try to represent citizens instead of special interests, but also for taxing and spending watchdogs in the press and those involved with good government citizen activist groups.”

What Was Really the Matter with the Kansas Tax Plan is published by Jameson Books, Inc. and copies will be available on Amazon.

Trabert concludes, “Kansas could have successfully cut taxes as other states have done. The undoing of a very good idea—allowing citizens to keep more of their hard-earned money—gets to the crux of the serious state and national challenges we face: policy takes a back seat to politics. The efforts of many elected officials are not on solving problems in ways that create the best path forward for all Americans to achieve prosperity, but on maintaining and consolidating power.”

Metro Monitor evaluates the Wichita economy

Metro Monitor from Brookings Institution ranks metropolitan areas on economic performance. How does Wichita fare?

Each year Brookings Institution creates an index of major metropolitan areas called Metro Monitor. The index for 2018 is at https://www.brookings.edu/research/metro-monitor-2018/. The 2018 edition, discussed below, provides rankings based on changes from the year 2015 to 2016. Comparisons over other time periods are also available.

In the area of growth, Wichita ranked 91 out of 100 metropolitan areas. For jobs, the ranking was 89. In the charts, you can see that since the last recession, the Wichita area is falling behind the country, with the gap growing each year. The good news in growth is that Wichita ranks higher in jobs at young firms (67 of 100). Young firms — which are different from small business — are vitally important to economic growth. 1

Example from Metro Monitor for Wichita. Click for larger.

In the two other major categories that Brookings looks at, Wichita is 91 out of 100 in prosperity, and 94 out of 100 in inclusion.

These rankings are based on values through 2016 and represent change from 2015. The index also has data for two other time periods of longer duration.

Looking forward

As the Brookings data end in 2016, what might we find if the data was based on 2017 values? Some of the data Brookings uses is not available until after a lengthy delay, such GDP for metropolitan areas. That data, which is an important indicator of a region’s economic health, is scheduled to be released in September 2018 for complete year 2017 data.

Employment data is available fairly quickly, although it is often revised each year in March. The nearby chart, displaying data from the Bureau of Labor Statistics, shows changes in the average annual employment for Wichita and the nation. For the year 2016, total nonfarm employment in Wichita rose by 0.61 percent. For 2017, the growth rate was 0.54 percent — a slowdown in job growth. An interactive version of the chart is available here. 2

These growth figures are far below the rate for the nation, which were 1.79 and 1.58 percent respectively.

Wichita leaders are talking about success in developing the Wichita economy; that there is momentum for the future. Based on the data we have available, the rate of growth of employment slowed down in 2017 from what was already anemic growth. What is the basis for optimism if we continue our present policies and leadership?

Annual change in job growth, Wichita and USA through 2017. Click for larger.


  1. Jason Wiens and Chris Jackson. The Importance of Young Firms for Economic Growth. Available at https://www.kauffman.org/what-we-do/resources/entrepreneurship-policy-digest/the-importance-of-young-firms-for-economic-growth.
  2. FRED, from the Federal Reserve Bank of St. Louis, is a resource for examining economic data and creating charts and tables. Most of the available data is data gathered from other sources, in this case the Bureau of Labor Statistics. FRED provides a consistent interactive interface to the data, and provides several ways to share the data. Start at https://fred.stlouisfed.org/.

WichitaLiberty.TV: Kansas Gubernatorial Candidate Dr. Jim Barnett

In this episode of WichitaLiberty.TV: Dr. Jim Barnett is a candidate for the Republican Party nomination for Kansas Governor. He joins Bob Weeks to make the case as to why he should be our next governor. View below, or click here to view at YouTube. Episode 185, broadcast February 24, 2018.

This is the first in a series of appearances by gubernatorial candidates for 2018. We hope that all major candidates, of all parties as well as independents, will accept our invitation. The filing deadline is June 1, the primary election is August 7, and the general election is November 6.


Greater Wichita Partnership asks for help

Wichita’s economic development agency asks for assistance in developing its focus and strategies.

At the meeting of the Sedgwick County Commission this week, commissioners will consider funding a consultant to assist the Greater Wichita Partnership.

Here is information provided to commissioners:

Greater Wichita Partnership (GWP) has requested $45,000 from Sedgwick County to engage the services of a consultant to direct an initiative to bring more focus to GWP’s regional economic development efforts. This one-time request, if provided, is intended to be leveraged with $45,000 from the City of Wichita and another $45,000 from GWP. Sedgwick County’s committment would represent one-third of the consultant’s work.

The proposed consulting engagement would be designed with two primary goals:

1. Develop a strategic plan for GWP that establishes an organizational structure to optimize and coordinate regional economic development efforts that grow opportunities, help create and maintain jobs, and promote the region as an attractive place to locate and/or grow a business.

2. Bring clarity and innovative ways for the Blueprint for Regional Economic Growth (BREG) to expand. We need to develop strategies to work together as a region to maintain and grow the Aerospace clusters for which we are known globally; while working to attract and grow businesses in other industries that will strengthen and diversify the regional economy.

There are a few ways to look at this request. One is that presently, GWP is working well and providing positive results, so there’s no need to spend money on the organization’s improvement. Local leaders seem pleased with GWP and its work. In January Wichita Mayor Jeff Longwell said “It’s hard to find a time when we’ve had more momentum.” 1 There are many other example of praise heaped on GWP and its leaders.

Or: We might argue that even though GWP is performing well, an overhaul could really boost its efforts.

Or: We might wonder how this organization is just getting started doing things like working on its focus and strategies. (While GWP is relatively new, it is a successor to a previous economic development group, with many of the same leaders and employees.)

What has GWP been doing? How effective is its stewardship of the Wichita-area economy? Here are some numbers on the Wichita-area economy.

Click for larger.
Personal income. For the Wichita metropolitan statistical area, personal income in 2016 rose slightly from 2015 level, but is still below the 2014 level. In real (inflation-adjusted) dollars, personal income fell in 2016. 2

Wichita metro employment and unemployment. Click for larger.
Employment. While officials promote the low Wichita-area unemployment rate, there is an alternative interpretation: The May 2017 unemployment rate declined to just about half the January 2011 rate. The number of employed persons rose by 1.1 percent, but the labor force fell by 3.7 percent. If we consider only unemployment rate, it looks like the Wichita area is prospering. But the unemployment rate hides bad news: The number of jobs increased only slightly, and the labor force fell by a lot. While it’s good that there are more people working, the decline in the labor force is a problem. 3

Population. In 1990 Wichita was the 80th largest SMA. In 2016 its ranking had fallen to 87.

Growth of GDP by Metro Area and Industries. Click for larger.
Growth in output. The worst news, however, is that the Wichita-area economy shrank from 2015 to 2016. In real (inflation-adjusted) dollars, the Wichita metropolitan area gross domestic product fell by 1.4 percent. For all metropolitan areas, GDP grew by 1.7 percent. Since 2001, GDP for all metropolitan areas grew by 29.3 percent, while Wichita had 12.3 percent growth. 4

With these points in mind, we ought to wonder if GWP and its leadership ought to be replaced with something else.

This item will be handled on the commission’s consent agenda, meaning that there will be no discussion or individual vote unless a commissioner decides to “pull” the item.


  1. Heck, Josh. Emerging Leaders panel offers insight into eco-devo strategies. Available at https://www.bizjournals.com/wichita/news/2018/01/11/emerging-leaders-panel-offers-insight-into-eco.html.
  2. Weeks, Bob. Wichita personal income up, a little. Available at https://wichitaliberty.org/wichita-government/wichita-personal-income-up-2016/.
  3. Weeks, Bob. Wichita employment trends. Available at https://wichitaliberty.org/wichita-government/wichita-employment-trends/.
  4. Weeks, Bob. Wichita economy shrinks. Available at https://wichitaliberty.org/economics/wichita-economy-shrinks/.

WichitaLiberty.TV: Danedri Herbert, Editor of The Sentinel

In this episode of WichitaLiberty.TV: The Sentinel’s Danedri Herbert joins Bob Weeks to discuss the upcoming gubernatorial debate, the Kansas Legislature’s website and transparency, and accountability in government. View below, or click here to view at YouTube. Episode 184, broadcast February 17, 2018.


Individual liberty, limited government, economic freedom, and free markets in Wichita and Kansas

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