Financial Captial - APDesign | Kansas State University
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Transcript Financial Captial - APDesign | Kansas State University
Financial Capital
What is Capital?
Capital is any resource capable
of producing other resources.
Examples of capital include:
cars, machines, buildings, land
and money.
Public and Private Capital
Public capital are community
resources: schools, roads,
utilities, parks.
Private capital are individual
resources: land, buildings,
equipment, money.
Financial Capital
Financial capital represents
resources that are liquid:
having the ability to be turned
into other assets.
Common forms of financial
capital are stocks, bonds,
market futures, letters of
credit and money.
Financial capital is extremely
mobile today which results in
growing problems for rural
communities.
Availability of Financial Capital
Loans: short-term or long-term
(bonds) funds borrowed from
a financial institute.
Stocks: selling shares of a
business to obtain financial
capital in exchange for
dividends and voting rights
that determine management
controls.
The Rise and Fall of Banks
1780’s – 1920’s banks were easy
to start due to lack of regulations.
During Great Depression, tens of
thousands of banks failed. Many
were located in rural communities.
Federal and State regulation of
banks instilled trust in the system
and helped insure financial capital
would be reinvested into the local
communities.
Deregulation of banks in 1980’s
caused a change in flow of
financial capital. Mostly out of
rural communities in search of
short-term returns.
“income multiplier”- tool used to
determine to what extent capital is
reinvested into a community
Maintaining Local Financial Capital
Community Reinvestment Act
of 1977: aimed at poor urban
areas, rural area at this time
seemed stable.
Brownfields Act in 1995
revised the CRA to target a
broader range of “low-tomoderate income
communities”.
New programs and community
foundations are arising to
address the financial capital
issues for rural communities.
The gov’t that Failed?
Governments can provide tax
concessions to certain
investments or geographic
areas.
Although this can bring more
businesses, industries & people
into a struggling community, it
puts additional stress on
publicly provided services, like
schools, utilities, roads, etc.
Livingston County Statistics
1994 total personal income $281,287
Net earnings: 54.0% of TPI
Dividends, interest, rent: 27.0% of TPI
Personal current transfer receipts: 19.0 of TPI
2004 total personal income $366,570
Net earnings: 55.6% of TPI
Dividends, interest, rent: 20.9% of TPI
Personal current transfer receipts: 23.5% of TPI
Livingston County Statistics
Continued
OSEDA County Demographic Profile - Trend 1990-2000
Livingston County , 29117
2000
Subject
13. Households by Income Source
Num
ber
Universe: Households
1990
Pct.
Num
ber
Change
Pct.
Num
ber
Pct.
(*)
Metadata: 1990 2000
Households With Income from Wage or Salary
4,076
70.3
3,914
69.2
162
1.1
Households With Income from Soc Security
1,970
34.0
2,049
36.3
-79
-2.3
Households With Income from Public Assistance
207
3.6
350
6.2
-143
-2.6
Households With Income from Retirement
876
15.1
706
12.5
170
2.6
Note
s
Livingston County Statistics
Continued
OSEDA County Demographic Profile - Trend 1990-2000
Livingston County , 29117
2000
1990
Change
Subject
Number
12. Selected Income Measures
Total Households
Pct.
Number
Universe: Households or Families or Persons
Pct.
Number
Pct. (*)
Metadata: 1990 2000
5,796
5,652
144
2.5
Median HH Income
$32,290
$28,242
$4,048
14.3
Average Household Income
$40,891
$36,647
$4,244
11.6
3,867
3,976
-109
-2.7
Median Family Income
$40,902
$36,070
$4,832
13.4
Average Family Income
$50,981
$43,397
$7,584
17.5
$16,685
$14,763
$1,922
13.0
Families
Per Capita Income
Note
s
Livingston County Statistics
Continued
OSEDA County Demographic Profile - Trend 1990-2000
Livingston County , 29117
2000
1990
Change
Subject
Number
14. Poverty (1999 dollars)
Pct.
Number
Universe: Persons for Whom Poverty Status is Determined
Persons For Whom Poverty Status is Determined
Poor Persons
13,592
Pct.
Number
Pct.
(*)
Metadata: 1990 2000
13,744
-152
-1.1
1,692
12.4
2,073
15.1
-381
-2.6
662
4.9
700
5.1
-38
-0.2
Persons Below 185% of Poverty Level
4,488
33.0
4,805
35.0
-317
-1.9
Persons Between 100 & 200% of Poverty Level
3,319
24.4
3,241
23.6
78
0.8
-41
-4.5
-8
0.1
-145
-5.3
-1,840
-66.4
-186
-5.1
Persons Below 50% of Poverty Level
Persons Under 5 for Whom Poverty Status is Determined
Below Poverty Level
Persons 5 to 17 Whom Poverty Status is Determined
Persons 5 to 17 Below Poverty Level
Persons Under 18 for Whom Poverty Status is Determined
Below Poverty Level
Poor Persons in Families
Families Below Poverty
874
194
915
22.2
2,591
417
202
22.1
2,736
16.1
3,465
2,257
82.5
3,651
611
17.6
681
18.7
-70
-1.0
1,176
10.3
1,518
12.7
-342
-2.4
334
5.8
51
0.9
283
4.9
Notes
Business Patterns
In 2003 there were 8,888 jobs in Livingston County.
Retail Trade
Farm employment
Manufacturing
Local government
1,204
845
828
799
Income Patterns
Percent of income by Industry
Manufacturing
Local government
Retail trade
Construction
9.2%
7.0%
6.5%
4.1%
More Livingston County Statistics
OSEDA County Demographic Profile - Trend 1990-2000
Livingston County , 29117
2000
1990
Change
Subject
Number
10. Employment Status
Pct.
Universe: Persons Age 16 or Older
Number
Pct.
Number
N
Pct. (*)
Metadata: 1990 2000
Persons Age 16 or Older
11,501
79.0
11,294
77.4
207
1.6
Civilian Labor Force
6,835
59.4
6,481
57.4
354
2.0
220
3.2
318
4.9
-98
-1.7
3,253
47.6
2,873
44.3
380
3.3
123
3.8
150
5.2
-27
-1.4
4,655
40.5
4,787
42.4
-132
-1.9
Unemployed Persons
Female Civilian Labor Force
Unemployed Females in
Civilian Labor Force
Not in Labor Force
o
t
e
s
More Livingston County Statistics
Continued
OSEDA County Demographic Profile - Trend 1990-2000
Livingston County , 29117
2000
1990
Change
Subject
Number
11. Work Force by Occupation
Pct.
Number
Universe: Employed Persons in CLF
Pct.
Number
Pct. (*)
Metadata: 1990 2000
Employed Persons in Civilian Labor
Force
6,615
96.8
6,163
95.1
452
1.7
Management, Professional & Related
Occupations
1,818
27.5
1,278
20.7
540
6.7
Service occupations
1,239
18.7
937
15.2
302
3.5
72
1.1
502
8.1
-430
-7.1
Farming, Fishing & Forestry
Occupations
Notes
Industry Incentives in Chillicothe
Farmers Electric Cooperative Companies offer loan programs of $400K zeropercent interest for 10 years.
Electric services are provided at no cost with no franchise fee’s or facilities
charge.
City of Chillicothe offers revolving loan programs.
Chillicothe Industrial Development Corporation (CIDC) provides business
loans.
Green Hills Rural Development offers low-cost interest loans.
Chillicothe Industrial Development Authority (IDA) offers revenue bonds.
Resources
Rural Communities Legacy + Change
Flora & Flora, 2004.
U.S. Department of Commerce
Bureau of Economic Analysis
www.bea.gov/
Chillicothe Chamber of Commerce
www.chillicothemo.com/index.html
Chillicothe Missouri
http://www.chillicothecity.org/index.html
U.S. Census Bureau
http://censtats.census.gov/
Office of Social and Economic Data Analysis
http://oseda.missouri.edu/index.shtml
Images and Photos
http://www.google.com/imghp?hl=en&tab=wi&q=