A final word on LeBron fallout, from an economic perspective
I’m not going to take long, because this is literally the last angle to be played, but it’s stuck under my craw since last week. People who supported LeBron James’ move to Miami were criticized for supporting something that would damage Cleveland’s anemic economy, and that moving him to a “wealthy” area like Miami was greedy.
There’s no doubt that an area like Cleveland is facing unique economic issues, and that the two areas have vastly different economic bases. But the simple argument comparting poor Cleveland and wealthy Miami doesn’t exactly play out how you may think.
According to the most recently available data (April 2010), Cuyahoga County, where Cleveland is located, currently has an unemployment percentage of 9.1%, slightly below the national average. Miami-Dade, on the other hand, has a percentage of 11.3%, more than a full point above the national average.
Miami masks its economic woes with palm trees and sunlight, but because it was so reliant on real estate development during the past decade, it got hit harder in the current recession than most areas outside of Las Vegas. Even moving past unemployment, the most recent three-year estimate by the U.S. Census Bureau puts the per capita income in the county, in 2008 inflation-adjusted dollars, at $23,750, which is $3,716 less than the national average, in an area with a very high cost of living average. In Cuyahoga County, the per capita income is $26,819, only $647 below the national average.
It’s certainly nothing to write home about for Miami-Dade. The county, which is identified by million-dollar homes on Star Island and lavish parties on South Beach, has some of the greatest discrepencies between wealth and abject poverty in the country. So when people talk about how economically devestating the move is to Cleveland, attention should be paid to how economically important the acquisions of Chris Bosh, Dwyane Wade and James are to South Florida at the same time.
6 comments
I wonder how an NBA team impacts the working-class and poor people in a city? Obviously Miami has got the rich people to buy tickets and that, but how many jobs are created?
[Reply]
Matthew Bunch Reply:
July 15th, 2010 at 10:39 pm
A greater demand for concession workers in and out of the arena for more fans. Local apparel creators and producers will make more shirts for more fans. Local media outlets who cover sports will receive more advertising with more eyes following the team. There are a lot of trickle-down effects to something like this, but my main point wasn’t about economic impact, it’s about removing the idea that Miami is the big, bad economic bully kicking sand in the face of down-and-out Cleveland.
[Reply]
Nice article to put this trade in perspective. Isn’t this whole Lebron trade way overrated and out of proportion? I’m from Holland, Europe so a long way from all the action…but is it really too simple to say that…if for instance the Cavs had the oppertunity to sign Wade, there’s little chance they would take into consideration the economic side-effects to the Miami area?
[Reply]
Matthew Bunch Reply:
July 20th, 2010 at 4:52 am
I think so. That area of the country is portrayed (fairly accurately) as having a decaying economic structure. But Cleveland really isn’t really having as bad of a time economically as people think, while Miami is having a worse time. It’s all about perception.
[Reply]
Let’s move some starplayers like kobe, james and wade to an area with a per capita income of $15,000. It doesn’t matter which players are on the team because most of the people can’t afford to go to the game.
Wow, what a major influence to the economy by some overpaid guys.
Get it?
[Reply]
Matthew Bunch Reply:
July 20th, 2010 at 4:55 am
These guys showing up doesn’t automatically mean extra cash in everyone’s pockets. However, there is a trickle-down effect to this, and it could mean the difference to businesses related to the Heat that are on the edge.
It’s not going to matter to someone who’s bankrupt and in foreclosure in Homestead who plays for the Heat. However, the restaurateur near the AmericanAirlines who was near closing a month ago might be trying extra hard to survive until October now.
[Reply]
Leave a Comment