The half life of facts, National Statistics edition. Much of what we consider as factual no longer is. Especially when it comes to US economic data.
It’s time for a refresher course.
Take oranges, for instance. Most Americans still believe that orange cultivation in Florida is a large contributor to that state’s economy. Think again. Florida orange production has shrunk by 92% in the past 20 years. According to the Florida Department of Agriculture, the value of all Florida orange production in 2022 was just $491 million. That’s a rounding error in a state with a total GDP of $1.3T.
Traveling northwest from the Sunshine State one might think about stopping in Kentucky, perhaps to take a few selfies in front of the tobacco fields and drying sheds. After all, Kentucky is considered the heart of US tobacco country. OK, but while the Blue Grass State still has the most tobacco farms of any US state, the value of the tobacco production from those farms totaled only $225 million in 2022, or one tenth of one percent of the total state GDP.
Oh, and let’s not forget Vermont and its maple syrup industry. Maple syrup is right up there with dairy cows and Ben & Jerry’s in terms of that state’s iconography. Must be a large industry. Not really. The 2022 maple syrup crop was valued at $172 million. That won’t even cover the cost of the average billionaire’s mega yacht.
So, what is taking the place of these historically significant industries? Housing, for one. On a less literal level, technology is replacing them. More than five percent of Florida and Kentucky workers now toil in tech jobs.
That’s an encouraging trend . . . but “technology” seems so much less tangible than oranges, tobacco, or maple syrup. Isn’t there something more tangible that these states are now exporting?
Yes, there is. Blood Plasma.
The US is the world’s leading supplier of blood plasma; it is our eighth largest export (by dollar value). We supply 70% ($23B) of a this $33B global industry. Why? Mostly because we are one of only four countries that permit payment for plasma. Donating blood is now a recognized source of quick cash in many low-income communities nationwide.
The facts, they are a changing.
The half life of facts is getting shorter. Want to learn more? Read my previous blog on this topic.
Peter has spent the past twenty-plus years as an acting/consulting CFO for a number of small businesses in a wide range of industries. Peter’s prior experience is that of a serial entrepreneur, managing various start-up and turnaround projects. He is a co-founder of Keurig.
