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Re: E-M:/ Saturday Detnews on Michigan Forests

Enviro-Mich message from David Allen <dallen@nmu.edu>


Let me correct one point in Dave's note.  The multiplier is more like 3 in
major regional manufacturing / service areas.  In the UP, the multipler is
typically about 1.4 to 1.8 (RIMS data).

Dave A.


>in subsidy for each job claimed or $145 per acre logged.  Furthermore, if we
>assume that each job pays $50,000/year, and we also assume that each dollar
>entering the economy results in 7 new dollars in other economic activity,
>then the value of logging the national forests in Michigan would be $50,000
>x 1,612 = aprx. $80,000,000 x 7(multiplier) = $560,000,000/year to the
>economy.  That's about 6.3% of the total value of Michigan's wood product
>industry and less then 10% of the total timber jobs.  Someone check my math
>and logic please.

David E. Allen
College of Business
Northern Michigan University
Marquette, MI, 49855
(906) 227-1244 (O)   (906) 228-9453 (H)

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