A new study out yesterday from The Common Sense Policy Roundtable shows the ripple effect of the oil and gas industry’s prosperity in Colorado. Using the Regional Economic Models, Inc. modeling, CSPR determined that the creation of 5,000 energy industry jobs would result in a net increase of 19,048 jobs.
From the study’s press release:
“Firms have a ripple effect in the economy when they buy goods and services from other firms and when employees spend their earnings,” the report states, in describing this multiplier effect. The researchers attribute the higher multiplier effect of oil and gas jobs to the higher wages that these jobs pay, and the additional capital inputs and investment required of the industry. “Oil and gas extraction is one of the highest paying industries in the state, with average annual earnings totaling an estimated $108,000 per worker. Additionally, with this level of direct growth, the industry is expected to induce high levels of investment activity in capital goods.”
But, that doesn’t matter to people opposing energy development here in Colorado, like Jared Polis, who is already worth an estimated $40 million dollars. Polis likely thinks – “Shut the industry down! Who cares about a $108,000 per year salary when my vacation home is impacted?” (It’s not.) Probably the guy making $58,000 per year. That’s the median household income in Colorado from 2008 through 2012, according to the U.S. Census.
We don’t need jobs. We don’t need higher salaries. Oh. Wait. We do? Hm. Maybe someone should tell Jared Polis.