An Analysis of Economic and Social Recession - Affected Constructs in the Kansas City Region (2000-2009)
Washburn University. School of Business
Kaw Valley Bank
It is a common occurrence. This time, maybe it is the luncheon speaker at a suburban Johnson County Rotary Club meeting. Or maybe it is two retirees discussing the latest weather and economic forecasts at a diner in a small west Missouri town. But when the discussion turns to the current recession, the story goes something like this, "We in the Midwest aren't affected the same way as the rest of the country. We likewise don't enjoy as much of the benefit of economic booms as the rest of the US when the nation's economy is rapidly expanding." But is this true? That is the first hypothesis investigated by this paper. A related corollary deals with the social response to recessions in the Midwest. Statements like "There are unique values related to work ethic and family in the Midwest that help its people weather recessions better than other regions of the US. As such, the Midwest's social fabric will mitigate certain negative social outcomes (divorce, crime etc.) during periods of economic recession." This likewise sounds plausible; but is it true? It comprises the second hypothesis investigated by this paper.