It is critical that we as individuals, our governing bodies, and our community organizations mindfully support existing businesses and invite new business activity that will create a stable and sustainable economy and provide livelihood to all who are willing to work. Let’s first consider some historical and economic information.
The longest lasting local economic activity in the Patagonia area during the past four centuries has been ranching, a part of the economy even now. As prospecting in the 19th and 20th centuries found major mineral deposits, there were also two boom-and-bust periods of mining, from about 1860 to 1910 and again in the middle 20th century.
The last mine near Patagonia closed in 1965. In the 50 years since then, the community has rebuilt its local economy on the basis of ranching; tourism; local food production; and recreational amenities, such as birding, hunting, camping, cycling, and hiking.
How did the local economy perform under the industrial-based economy (predominantly mining) and under the service-based economy (predominantly tourism)? A review of all available Town of Patagonia financial audits (1963-2013) helps quantify a half century of economic transformation for the town. Sales tax revenue is one measurement of financial health. In 1963, the town’s sales tax revenues in comparable 2013 dollar value was $54,311 (actual revenue was $7,191). In 2013, the sales tax revenue was $197,540. The service-based economy in 2013 provided 364 percent more sales tax revenue than had the economy based predominantly on mining. Another measure of the town’s health is population, which grew from 540 in 1960 to 913 in 2013—a growth of 69 percent.
I am one of the owners of the local artists gallery. Our business represents more than 40 area artists. Some 85 percent of our business is from visitors to the area, who come here to enjoy birding, hunting, camping, cycling, hiking, and other outdoor activities. I believe that my business and almost all of the other existing businesses will be destroyed as the result of any new mining in our mountains. The number of existing local jobs that will be lost will exceed any mining jobs that might be created for local people.
Yes, there is a history of mining in this area. I know that there are families in our community who were part of that mining tradition. Historically, mining put food on the table and provided a living for many local families. Those mines and jobs, however, are of an entirely different time and place than would exist with today’s mining practices.
What can we as a community do now to proactively create a stable local economy? I propose that we create a discussion group that includes all businesses, as well as community organizations and interested individuals. A few of the topics include a look at the factual information available about the current employment situation, the history of this area’s economic stability and success under both the industrial and service-based economies, and discussions about how we can support our existing businesses and attract new ones that will contribute to this thriving, resilient community.
I hope to enlist local business owners and community organizations to participate in such a discussion so that we can work together as a community to establish a plan that truly perpetuates a strong and sustainable economy. I will first reach out to the Patagonia Area Business Association and the newly formed Patagonia Regional Business Coalition as two organizations that represent various business interests in the community.
Please share your suggestions for economic development and local employment. My contact information is in the Country Connection.