Economic Contributions of Mexican Americans in Minnesota

Bruce P. Corrie, PhD corrie@csp.edu The economic contribution of Mexican Americans to the Minnesotan economy can be documented in four main areas:

• As consumers of goods and services
• As workers
• As business owners and employers, and
• As tax payers

Further, the Minnesotan economy is increasingly being tied with the Mexican economy through trade. Below are some data on the economic contributions of Mexican Americans to the economy of Minnesota. Thanks to Readus Fletcher of the City of Saint Paul’s Minority Business Development and Retention department for assistance on this project.

• Mexican Americans have an estimated buying power of $1.1 billion.
• According to the Economic Census 1997, there were over a 1000 Mexican American firms in Minnesota with 213 million dollars in sales, employing between 2500 to 4900 people.
• According to Census 2000 there were 38, 555 Mexican American workers in Minnesota.
• 92 percent of Mexican American households in Minnesota did not receive any social security income – they were net contributors to the social security fund (Census 2000).
• 92 percent of Mexican Americans households in Minnesota reported no public assistance income according to Census 2000.
• Mexican Americans in Minnesota paid 8.2 million dollars in real estate taxes according to Census 2000.
• Mexican Americans in Minnesota paid 7.2 million dollars in rent according to Census 2000.
• Latino immigrant labor contributes about $480 million in annual value added to the economy of South Central Minnesota, including an additional $45 million in state and local tax revenue (Kielkopf, 2000)
• In the following 15 counties Mexican American buying power ranged from 10 to 46 million dollars: St. Louis, Mcleod, Clay, Stearns, Carver, Wantonwan, Kandiyohi, Mower, Freeborn, Scott, Nobles, Olmsted, Rice, Anoka and Washington.
• Mexican American buying power was an estimated 99 million dollars in Dakota County, 237 million dollars in Ramsey County and 364 million dollars in Hennepin County.
• In the following 19 cities in Minnesota Mexican American buying power ranged between 10 and 23 million dollars: Woodbury, Northfield, Maplewood, St. Louis Park, Plymouth, Burnsville, Faribault, Inver Grove Heights, Eagan, South Saint Paul, Bloomington, Willmar, Albert Lea, Austin, Rochester, Brooklyn Park, West Saint Paul, Worthington and Richfield.
• In Minneapolis Mexican American buying power is an estimated 215 million dollars and in Saint Paul an estimated 189 million dollars.
• In 2004, total value of Minnesota Mexico trade (exports and Imports) was almost $1.5 billion dollars. (Source: Bureau of Transportation Statistics)
• In 2004, Mexico was among the top 10 export markets for Minnesota. Exports to Mexico grew by 42 percent – much higher than the national average. (Source: DEED)

Minnesota Lessons from CA Study of Immigrants

Bruce P. Corrie, Ph.D. corrie@csp.edu A report by an independent research organization, Center for the Continuing Study of the California Economy recently presented its report to the California government. http://www.labor.ca.gov/panel/impactimmcaecon.pdf. The report reviews a wide range of studies on the impact of immigration both legal and illegal on the California and national economy (Please see report for extensive links to studies on immigration and the economy). The report’s conclusions are helpful to us in Minnesota as we explore this issue and are excerpted below: General: Immigration policy in the United States is a federal responsibility. Congress sets immigration eligibility rules and limits, and the federal government has the responsibility for border security. Even though immigration policy is a federal responsibility, the effects of immigration are concentrated in states, such as California, where most immigrants live. This disparity between federal responsibility and local impact helps make immigration one of the most hotly debated public policy issues. Defining Terms: Various organizations use different terms to refer to people who reside in the United States without legal authorization. The Census Bureau and the Immigration and Naturalization Service (INS) generally use the term unauthorized immigrant. This is the term used throughout this report. Other organizations use different terms. The Pew Hispanic Center now uses the term unauthorized migrant. The Urban Institute and the National Council of La Raza use the term undocumented immigrant. The U.S. General Accounting Office uses the terms illegal immigrant and illegal alien. The Center for Immigration Studies and the Federation for American Immigration Reform use the term illegal immigrant. Unauthorized immigrants enter the country in one of two principal ways:

• By crossing the border without valid immigration documents; or
• By entering with a valid visa and then remaining in the country after their visas expire.

Fiscal Impacts: The National Research Council studies and other studies raise many methodological and measurement questions about getting accurate estimates of the fiscal effects of immigration and, particularly, unauthorized immigration. The methodological and measurement issues (many of which are mentioned earlier in this chapter) derive from the fact that existing studies:

• Generally omit long-term impacts;
• Differ on which costs should be attributed to immigrants;
• Differ on how to account for taxes paid by immigrants;
• Count all education spending as a cost (rather than an investment) and omit the benefits of investing in education;
• Differ on how to incorporate the children of immigrants;
• Do not generally take a comprehensive look at federal, state and local fiscal impacts; and
• Look at a single point in time and do not estimate trends in fiscal impacts.

Fiscal Balance Varies by Jurisdiction Federal payroll taxes for Social Security and Medicare are the largest tax payments made by low-income residents, regardless of whether they are immigrants or native-born citizens. However, the largest public service costs are for education—and most of these costs are paid for at the state and local level. When the distribution of all public service costs and tax payments is taken into account, all studies of the fiscal effects of immigration agree that the fiscal balance is negative at the state and local level. Moreover, the state and local fiscal effects are felt most keenly in jurisdictions with higher shares of low-income immigrants. Some jurisdictions experience more negative fiscal balances than others. Immigration policy in the United States is a federal responsibility. Congress sets immigration eligibility rules and limits, and the federal government has the responsibility for border security. Because immigration policy is a federal responsibility, and because the fiscal balance for immigrants can be positive at the federal level and negative at the state and local level, states with large immigrant populations—whether legal or unauthorized—regularly ask Congress for financial assistance to offset the current costs of serving unauthorized immigrants. Some federal financial assistance is granted for emergency Medicaid costs and for prison costs, but that federal assistance covers only approximately 10% of the costs of these programs. Economic Impacts The economic impact of immigration falls into two broad categories:

• Effects on the overall economy—including economic growth, unemployment, wages and price levels.

• Effects on individuals—including, in particular, whether individuals’ wages or job opportunities are affected as a result of immigration.

The conclusion of most research on the subject is that immigration provides net economic benefits to domestic residents, although some individuals may suffer losses of income. In other words, immigration provides net benefits—but there are both winners and losers. The ability of immigrants to acquire experience, and the ability of their children to acquire a good education, including college education, will play a large role in determining the long-term economic and fiscal impact of immigration in the state and the nation. Some California Trends:

• Job growth — California’s job growth has outpaced the national average since 1994. Although California has experienced two downturns since 1990 (the aerospace-led downturn in the early 1990s and the Internet/tech-led downturn after 2000), immigration was not a factor in either downturn.
• Poverty rate — California’s poverty rate is now close to the national average, after having been 3% higher than the nation’s rate in the early 1990s. The poverty rate declines as the immigrants’ length of residence in the U.S. increases.
• Average wage levels — California average wages have risen faster than the national average since 1990. They were 13% above the national average in 2004.
• English language proficiency — English language proficiency and high school graduation rates rise in the second generation. The Pew Hispanic Center reports that only 7% of second-generation Latinos use Spanish as their primary language. In the third generation of Latinos, 78% use English as their primary language, and the other 22% are bilingual.

In The Costs of Immigration to Taxpayers, analysts George Vernez and Kevin McCarthy conclude: Existing studies of the costs of immigration do not provide a reliable or accurate estimate of the net costs and benefits of immigration—even when those costs and benefits are defined narrowly. Moreover, without reaching consensus on a host of conceptual and accounting issues, we doubt that additional studies will shed light on these important policy questions. Thanks to Barbara Ronnigen of the State Demographer’s Office for bringing this study to my attention.

Principles for Comprehensive Immigration Policy

Minnesota's Competitive edge will depend on how we address the role and place of immigrants in our economy - ranging from the high technology arena to the low skilled areas of our workforce. The following are suggested principles to guide our discourse on this issue.

• Respect the dignity of the person
• Keep issues relating to immigrants, legal and illegal, in the policy arena and not the political arena
• There is a clear distinction between a terrorist and an immigrant (legal or undocumented worker). Each calls for separate responses.
• Good immigration policy looks at both the costs and benefits of immigration related issues.
• Mexico and the United States have a symbiotic relationship that impacts a number of issues including immigration policy.
• Minnesota's increasing ties to a global economy demands a global perspective on policies, especially immigration policy.

If you like your name to be added to these principles (or if you have suggestions) please send a message to corrie@csp.edu and I will add it to the list posted on my blog- http://ethnictrends.blogspot.com

Supporters of the Immigrant Principles

Isabel Chanslor

Marcy Das-Sulc

David Zander

Adeel Lari

Ramon Leon

Barbara Jo Davis

Mary Laeger-Hagemeister

Edwina Garcia

One Sided State Report on Illegal Immigrants

Bruce P. Corrie, PhD corrie@csp.edu The recent report of the Department of Administration on undocumented workers gives a one sided perspective on the impact of these workers on the Minnesotan economy. According to the report, undocumented workers or illegal immigrants cost the state $180 million a year. The report concludes that the net costs of undocumented workers are greater than their tax payments. (http://www.state.mn.us/mn/externalDocs/Administration/Report_The_Impact_of_Illegal_Immigration_on_Minnesota_120805035315_Illegale ) Interestingly the report does not refer to a study commissioned by HACER Minnesota in 2000 done by James Kielkopf which reported the following: (http://www.hacer-mn.org/PDFs/Undocumented.pdf)

• Undocumented workers account for at least $1.56 billion a year in valued added to the Minnesotan economy.
• The economic impact of undocumented workers accounts to as much as 2.4 percent of Minnesota’s GDP.
• Up to 50,000 Minnesotans owe their jobs to the presence of undocumented workers. For every undocumented worker removed from the economy there is a corresponding loss of a job somewhere else in the economy.
• These workers contribute an estimated $1 billion in tax revenue and are a net benefit to Minnesota.

Further, my analysis of data on Minnesota firms sanctioned by the INS for employing undocumented workers revealed that a wide range of industries across 69 counties and 196 cities in Minnesota used undocumented workers (See blog below). These workers are subsidizing our standard of living in Minnesota. In order to come up with a comprehensive solution to the issue of undocumented workers we need to have a complete picture of the impact of these workers else we will just be chasing policy windmills.

Over 1000 MN Firms in 69 counties used Undocumented Workers

Bruce P. Corrie, PhD corrie@csp.edu Over 1000 Minnesota companies in 196 Minnesota cities and 69 Minnesota counties used undocumented workers. These firms were in 23 percent of Minnesota’s cities and 79 percent of Minnesota’s counties. The firms were found in 75 SIC 4 digit industry categories ranging from roofers to commercial printing. Undocumented workers do have a significant impact on the Minnesotan economy. Similar to cheap Chinese imports keeping our inflation low, cheap labor of the undocumented workers are subsidizing our lifestyles in Minnesota in substantial ways. The companies cover a wide spectrum of Minnesota’s firms and include some prominent Minnesota institutions. The data reveals the importance of undocumented workers to the Minnesota economy. The data will help policy makers recognize the important contribution these invisible workers make to the Minnesotan economy and spur them to develop a comprehensive immigration strategy. The Pew Center estimates that there are around 55-85,000 undocumented workers in Minnesota (http://pewhispanic.org/files/reports/46.pdf). The data was obtained from the INS by the Center for Immigration Studies. The data reports cases of companies sanctioned by the INS for employing undocumented workers in Minnesota mainly during the period 1989-2000. Below are the major cities and counties where the firms were located as well as the 75 SIC four digit categories of firms that employed undocumented workers. SIC Code Category 8361 HOMES,RESIDENTIAL CARE 8211 SCHOOLS,ELEMENTARY & SECO 8099 HEALTH & ALLIED SVCS,NEC 8082 HOME HEALTH CARE SVCS 8052 INTERMEDIATE CARE FACILIT 8051 NURSING CARE FACILITIES,S 7997 SPORTS & RECREATION CLUBS 7991 PHYSICAL FITNESS FACILITI 7542 CARWASHES 7538 AUTOMOTIVE REPAIR SHOPS,G 7389 BUSINESS SVCS,NEC 7361 EMPLOYMENT AGENCIES 7359 EQUIPMENT RENTAL & LEASIN 7349 BLDG CLEANING & MAINTENAN 7299 PERSONAL SVCS,NEC 7221 PHOTOGRAPHIC STUDIOS,PORT 7218 INDUSTRIAL LAUNDERERS 7213 LINEN SUPPLY SVCS 7011 HOTELS & MOTELS 6512 BLDG OPERATORS,NON-RESIDE 6011 BANKS,FEDERAL RESERVE 5963 DIRECT SELLING ESTABLISHM 5944 JEWELRY STORES 5941 SPORTING GOODS STORES & B 5812 RESTAURANTS 5812 NURSING & PERSONAL CARE F 5713 FLOOR COVERING STORES 5699 APPAREL & ACCESSORY STORE 5651 FAMILY CLOTHING STORES 5511 CAR & TRUCKS DEALERS,NEW 5499 FOOD STORES,MISC 5411 GROCERY STORES 5399 GENERAL MERCHANDISE STORE 5331 VARIETY STORES 5311 DEPARTMENT STORES 5199 NON-DURABLE GOODS,NEC,WHL 5159 FARM-PRODUCT RAW MATERIAL 5099 DURABLE GOODS,NEC,WHLS 5093 SCRAP & WASTE MATERIALS,W 5015 MOTOR VEHICLE PARTS,USED, 4724 TRAVEL AGENCIES 4213 TRUCKING,EXC LOCAL 4151 SCHOOL BUSES 3999 MANUFCTRNG INDUSTRIES,NEC 3842 ORTHOPEDIC & SURGICAL APP 3711 MOTOR VEHICLE MFRS 3672 PRINTED CIRCUIT BOARDS 3643 WIRING DEVICE MFRS,CURREN 3629 ELECTRICAL INDUSTRIAL APP 3585 AIR CONDITIONING & HEATIN 3544 SPECIAL DIE & TOOL MAKERS 3499 METAL PRODUCT MFRS,NEC,FA 3496 WIRE PRODUCT MFRS,MISC,FA 3449 STRUCTURAL METALWORK MFRS 3423 TOOL MFRS,HAND & EDGE 2789 BOOKBINDING & RELATED WOR 2752 COMMERCIAL PRINTING,LITHO 2448 PALLETS & SKIDS MFRS,WOOD 2389 APPAREL & ACCESSORIES MFR 2099 FOOD PREPARATIONS MFRS,NE 2022 CHEESE MFRS,NATURAL,PROCE 2015 POULTRY SLAUGHTERING & PR 2011 MEAT PACKING PLANTS 1796 BLDG EQUIP INSTALLATION & 1761 ROOFING,SIDING & SHEET ME 1742 PLASTER DRYWALL INSULATIO 1741 MASONRY,STONE SET & OTHER 1721 PAINTING & PAPER HANGING 1542 CONTRACTORS,NON-RESIDENTI 1522 CONTRACTORS,MULTIFAMILY U 0782 LAWN & GARDEN SVCS 0253 TURKEY & TURKEY EGG FARMS 0191 FARMS,GENERAL,PRIMARILY C 0181 NURSERIES,FLOWERS,ETC 0000 MAINTENANCE CITYNAME ADRIAN AFTON AITKIN ALBANY ALBERT LEA ALEXANDRIA ALTURA ANOKA APPLE VALLEY APPLETON ARLINGTON AUSTIN BAYTOWN TOWNSHIP BEMIDJI BIG LAKE BLAINE BLOOMINGTON BRAINERD BRECKENRIDGE BROOKLYN CENTER BROOKLYN PARK BROOKS BUFFALO BUFFALO LAKE BURNSVILLE BUTTERFIELD CAMBRIDGE CANNON FALLS CARVER CHAMPLIN CHANHASSEN CHASKA CLARA CITY CLEARBROOK CLEARWATER COLD SPRING COLOGNE COLUMBIA HEIGHTS COMFREY COON RAPIDS COTTAGE GROVE CROOKSTON CRYSTAL DALTON DAYTON DETROIT LAKES DEXTER DODGE CENTER DULUTH EAGAN EASTON EDEN PRAIRIE EDINA ELKO ELLENDALE ELY EVELETH EXCELSIOR FAIRMONT FARMINGTON FERGUS FALLS FOREST LAKE FRAZEE FRIDLEY GARFIELD GAYLORD GLENWOOD GOLDEN VALLEY GOODVIEW GRAND PORTAGE GRAND RAPIDS HAM LAKE HASTINGS HECTOR HIBBING HOPKINS HUGO INVER GROVE HEIGHTS JACKSON JORDAN KASOTA KENYON LA CRESCENT LAKE ELMO LAKE PARK LAKEVILLE LAPORTE LE SUEUR LITCHFIELD LITTLE CANADA LITTLE FALLS LONG LAKE LORETTO LUCAN LUVERNE LYMAN MADELIA MADISON MAHTOMEDI MANKATO MAPLE GROVE MAPLE PLAIN MAPLETON MAPLEWOOD MARSHALL MAYER MEDINA MENDOTA MENDOTA HEIGHTS MINETONKA MINNEAPOLIS MINNESOTA CITY MINNESOTA LAKE MINNETONKA MONTGOMERY MOORHEAD MOTLEY NEW BRIGHTON NEW HOPE NEW PRAGUE NISSWA NORTH BRANCH NORTH OAKES NORTH SAINT PAUL NORTHFIELD OAK PARK HEIGHTS OAKDALE OKLEE OLIVIA ORONO ORONOCO ORR OWATONNA PARK RAPIDS PELICAN RAPIDS PEQUOT LAKES PIPESTONE PLYMOUTH PRINCETON PRINSBURG PRIOR LAKE REDWOOD FALLS RICHFIELD ROBBINSDALE ROCHESTER ROGERS ROSEAU ROSEMOUNT ROSEVILLE ROYALTON RUTHTON S INTL FALLS SAINT BONIFACIUS SAINT CLAIR SAINT CLOUD SAINT JAMES SAINT JOSEPH SAINT LOUIS PARK SAINT PAUL SAINT PETER SARTELL SAUK RAPIDS SAVAGE SHAKOPEE SHOREVIEW SILVER LAKE SLEEPY EYE SOUTH SAINT PAUL SPICER SPRING GROVE SPRING PARK ST CHARLES ST LOUIS PARK STILLWATER STORDEN THIEF RIVER FALLS TRACY VERNDALE VIRGINIA WACONIA WALDORF WALKER WASECA WAYZATA WELLS WEST SAINT PAUL WHITE BEAR LAKE WILLMAR WINDOM WINONA WOOD LAKE WOODBURY WORTHINGTON WYOMING YOUNG AMERICA ZIMMERMAN COUNTY YELLOW MEDICINE WRIGHT WINONA WILKIN WATONWAN WASHINGTON WASECA WADENA SWIFT STEELE STEARNS SIBLEY SHERBURNE SCOTT SAINT LOUIS ROSEAU ROCK RICE RENVILLE REDWOOD RED LAKE RAMSEY POPE POLK PIPESTONE PENNINGTON OTTER TAIL OLMSTED NOBLES NICOLLET MOWER MORRISON MILLE LACS MEEKER MCLEOD MARTIN LYON LESUEUR LAKE LAC QUI PARLE KOOCHICHING KANDYOHI JACKSON ITASCA ISANTI HUBBARD HOUSTON HENNEPIN GRAFTON GOODHUE FREEBORN FARIBAULT DOUGLAS DAKOTA CROW WING COTTONWOOD COOK CLEARWATER CLAY CHISAGO CHIPPEWA CASS CARVER BROWN BLUE EARTH BELTRAMI BECKER ANOKA AITKIN

Economic Contributions of Asian Indian Minnesotans

Bruce P. Corrie, PhD corrie@csp.edu The Asian Indian population is in the range of 30,000 according to Census 2000 and have a significant impact on the Minnesota economy: An immigrant community with buying power of nearly half a billion dollars. In suburbs like Eden Prairie, Asian Indian buying power is 20 million dollars. 97 percent receive no public assistance but pay over 5 million in real estate taxes and over 2 million in rental payments. In 1997 there was an estimated 961 Asian Indian firms in Minnesota with 670 million dollars in sale employing over 6000 people. 72 percent of the Asian Indian workforce are in management and professional occupations. Among the occupations with a strong Asian Indian presence are computer and health related occupations as well as the social sciences. Asian Indians have high human capital with 74 percent having a Bachelor’s degree or higher educational qualifications. In Minnesota the Asian Indian influence cuts across many sectors as can be seen in the list below:

POLITICS

State Senator Satveer Chaudhary (DFL)

Gopal Khanna, Governor’s Cabinet (GOP)

BUSINESS/Management

Mahendra Nath, MN Business Hall of Fame

Kay Kuba, Top 100 Women owned Business

Prakash Puram, National Export Council

Frank Moneteiro, SBA Small Business Award

Rajiv Tandon, Rajeo Dhar, KC Sukumar, Daljt Sikha, Satya Garg, Bennet Cyrus, Anil Khurana, Vinod Kumar, Paul Kuttikadan, Ben Kurian , Nita Singh. Top MN Companies

Marthand Noorkala, Senior Mgmt, MnDOT

Bruce Corrie, Chair, Governors Working Group on Minority Business Dev (Ventura).

Vijay Sood, Senior VP, General Mills

Jesse Singh, Division VP, 3M

Basant Kharbanda, owner Foshay Towers

V V Chari, Advisor to Federal Reserve Bank

Aks Zaheer, Carlson School of Management

MEDIA

Fred de Sam Lazaro, NewHour Lehrer, PBS

Vineeta Sawkar, New anchor, KSTP

Neal Justin, Star Tribune and AAJA

Geeta Sitamariah, Pioneer Press

Mukthar Thakur, Sarjit Bains, Shashi Gupta, Sangam Radio and Geetmala TV

COMMUNITY

Rev. Cherian Puthiyottil, Rev. Andrade, Rev. Thoomkuzy, Rev. Thelakatt, Pastors

Mukhtar Thakur, State Council on APA

Dilip Mallick, Vice Chair, Dragon Festival

Shashi Gupta, Bhupat Desai, Bruce Corrie, Asian Pacific Fund, Saint Paul Foundation

Ram Gada, Minnesota Historical Society

Hyder Khan, MN Advocates Human Rights

Bhupat Desai, Ananth Shankar, Dilip Mallick, Sarjit Bains, Bruce Corrie (Chair), The Policy Roundtable

Rowzat Shipchandler, Saint Paul Foundation

SCIENCE/HEALTH/Technology

Sumita Mitra, Gaddam Babu, Ashok Nangia, 3M Corporate Scientist

Vibhu Kshettry, Minneapolis Heart Institute

Ramesh Harjani, Jaideep Srivastava, Shashi Shekhar, Vipin Kumar, High Tech Innovators

Krishna Saxena, Shashi Sane, Children’s Hospital

CULTURE

Ranee Ramaswamy, Ragamala Theatre

Rita Mustafi, Katha Dance Theater

Dipankar Mukerjee, Meena Natarajan, Pangea Theatre

Shivanthi Sathanandan, India MusicSociety

Raj Menon, Godan & Guptan Nambodiripad, Preeti Mathur, Neena Gada, Rabinder Bains

SILC, COMMUNITY

Raghavan Iyer, Indian Cusine

Ethnic Trends: Latinos in Baseball

Bruce P.Corrie, PhD corrie@csp.edu Jonathan Eig writes in the October 22,2005 edition of the Wall Street Journal that with the rise of the White Sox of Chicago, Latino dominance of baseball takes center stage. Ozzie Guillen is the Manager of the Chicago White Sox and is a native of Venezuela. He is the first Latino manager to reach the World Series. 8 of his 25 players at the World series are Latino. In major league baseball Latinos have grown from 13 percent of all players in 1989 to 26 percent in 2004. It is estimated that around half of minor league players are Latinos.

Hmong Real Estate Firm Among Top 25

Bruce P. Corrie, PhD corrie@csp.edu JB Realty (Kou Vang) was ranked 14th in City Business Book of Lists of Real Estate Brokerage Firms. The firm moved up four notches from 18 last year to 14 on the list. For more information see the latest edition of The Business Journal.

Chinese Minnesotans: Economic Contributiions

Bruce P. Corrie, PhD corrie@csp.edu According to Census 2000, there were 15 380 Chinese Minnesotans. Chinese Minnesotans have an estimated buying power of over $400 million dollars. They paid $6.1 million in real estate taxes, $1.2 million in rent and an estimated $45 million in state and local taxes. According to the Economic Census 1997, there were 922 Chinese Minnesotans firms with an estimated 454 million in sales. Chinese Minnesotans have very high human capital: 60 percent of the Chinese Minnesotan workforce were in Management and Professional occupations. Chinese educational levels were higher than the average for Minnesota with 64 percent having a Bachelor’s degree or higher. 11 percent had doctorates. Below is a partial list of Chinese Minnesotans who have contributed to the building of Minnesota in various areas.

1. Business/Science Fred Hsiao, Top 25 General Contractor Lee Ann Chin, Restaurant chain Yvonne Cheung Ho, President, MEDA Eugene Sit, Sit Mutual Funds Paul Gam, Saint Jude MedicalLi King Feng, MN Trade OfficeZ.J and Helen Lee, EntrepreneursWeiming Lu, President, Lowertown Redevelopment CorporationH. C. Shin, Executive Vice President, 3MKaren Hsiao Ashe, Scientist, U of M, Alzheimer’s diseaseDavid Pui, Scientist, U of MYalai Zhang, EntrepreneurBrian Zhang, Entrepreneur
2. Community Judge Tony Leung, Hennepin County Judge Regina Chu, Hennepin CountyGail Chang Bohr, Children’s Law CenterJennie Hsiao, Council on APA MN Ivy Chang, Co-Chair, U of M Asian Advisory Council, The Policy RoundtableJoseph Hui, Asian Pacific Fund, Saint Paul Foundation, The Policy Roundtable Valerie Lee, Minneapolis FoundationHong Yang, U. of M. China CenterErika Lee, Immigrant historianConnie Wang, AttorneyAmy Xu, AttorneyNelson Dong, AttorneyMargaret Wong, Breck School
3. Culture Yo Yo Ma, International cellistWing Young Houie, PhotographerAnge Hwang, Asia Media Access Kaimay Terry, CAAM Dance TheatrePat Hui, artist and collectorPaul Kwok, artist.

Is China Growing too fast? Minnesota China expert explores topic

The Minnesota based international online journal presenting policy issues from diverse perspectives www.policybriefs.org features Minnesota pioneering China expert, Professor Richard Bohr of the College of Saint Benedict.

Bohr edits a series of policy briefs on the topic – Is China Growing too fast? Also featured is a policy brief on China versus India as the new regional economic superpower.

The online journal indexed by EBSCO presents complex policy issues in a simple way and at the same time offers the reader the diversity of perspectives on a particular topic.

The online editor of the journal, Peter Habenczius is based in Hungary. The Editor/Founder of the journal Dr. Bruce Corrie is professor of economics at Concordia University in Saint Paul, Minnesota. For more information please contact him at corrie@csp.edu.

Minnesota Minority Buying Power 2005

Bruce P. Corrie, PhD
corrie@csp.edu

According to the Selig Center of Georgia, minority buying power nationally is an estimated 2 trillion dollars and 12.8 billion in Minnesota. (Greater than the GDP of over 90 countries in the world)

2005 Black Buying Power – 4.1 billion dollars (Greater than the GDP of over 50 countries)
2005 American Indian Buying Power – 1.1 billion dollars (Greater than the GDP of over 25 countries)
2005 Asian American Buying Power – 4.3 billion dollars (Greater than the GDP of over 50 countries)

2005 Hispanic Buying Power – 3.3 billion dollars (Greater than the GDP of over 50 countries)

Zone Section of University Avenue as an Ethnic Commercial Corridor

Zone Section of  University Avenue as an Ethnic Commercial Corridor


We would like University Avenue from Lexington Avenue to the State Capitol to be zoned an Ethnic Commercial Corridor and ask that specific steps be taken to develop and market this unique ethnic identity.

In our vision that segment of University Avenue will continue to be a hub for small and ethnic businesses and community organizations. What we would like to see further developed is the creation of an ‘ethnic identity’ in terms of ethnic art, street signs and banners. The area then will complement other ethnic areas in Saint Paul such as District Del Sol and Selby Avenue and could be marketed as one of the attractions of our global city.

We do not see the choice of Big Box versus small businesses or community on the avenue, rather we can see opportunities for both enhancing the avenue.  Big Box developments could take place on other stretches of the avenue and would be encouraged to play a supportive role in developing the ethnic infrastructure and marketing of the Ethnic corridor segment of the avenue.

Having studied the six block stretch on University Avenue from Dale to Farrington earlier this year, we find our suggestion to be of great merit to the city.

In 1997, David Kaplan documented the growth in the avenue in an article published in the journal Economic Geography. Integrating data from various sources he documented the growth and development of Asian owned businesses on a 6 block stretch from Dale to Farrington from 1981 to 1991. The growth in the avenue paralleled the arrival of Southeast Asian refugees to Minnesota and Saint Paul. In 1999, Saint Paul Pioneer Press reporter Brian Bonner did an extensive and detailed map of businesses on 17 blocks on University Avenue.

We and other students in our Microeconomics class decided to update the above reports of the avenue and provide a contemporary perspective on the 6 block stretch from Dale to Farrington. The advantage of focusing on just the 6 block stretch on the avenue was the presence of comparable data going back to 1981 that could illustrate the dynamic energy on the avenue.

Our study showed that Asian businesses grew from 2 percent of all businesses on the six block stretch of the avenue in 1981 to 39 percent in 1991 to 67 percent in 2005.

These ethnic businesses have put in their own equity, for the most part, in developing the avenue. They converted run down and boarded buildings into what have now become thriving businesses. We want to focus on the social equity that they have put into the business as the basis for our proposal to market and develop it as an ethnic commercial corridor.

These ethnic businesses by being successful have also increased property values on the entire avenue. Now it is the turn of those who want to locate big box developments on the avenue to pay their dues. By facilitating the development and marketing of the ethnic corridor on University Avenue they will repay the social equity invested by the ethnic communities around the avenue. In the process they will also help their own businesses prosper by tapping into the ethnic customer base that frequents the avenue. This is the win-win situation for all.

Critics of the Big Box developments will find in our proposal a healthy compromise that will be good for all: jobs as well as the small and ethnic businesses as well as the residents of the neighborhoods around the avenue.

The economic paybacks of such a decision are tremendous. Among the many benefits of having a declared ethnic commercial corridor are the following:

• Increase in the number of ethnic business locating on and around the avenue, such as is occurring in the Frog Town area.


• Encouraging more business to business and business to community networks as mainstream businesses realize the potential of the ethnic markets.


• A living vibrant example of people achieving the American dream.


• It helps change negative stereotypes of immigrants and vividly illustrates their economic contributions to society.


• Saint Paul can effectively market its multi ethnic capital which is a big draw for the visitor and convention business.

University Avenue is a living example of the American dream. It is time to celebrate this identity in a strategic way.

Bruce Corrie is Professor of Economics and Grant Meyer, Xieng Thor, and Sherri Volkert are undergraduate students in the Department of Business at Concordia University, Saint Paul. Corrie can be reached at corrie@csp.edu.

ECONOMIC CONTRIBUTIONS OF MINORITIES IN LOUISIANA

Bruce P. Corrie, PhD
corrie@csp.edu

BUYING POWER:               20 BILLION DOLLARS

RENTAL PAYMENTS               109 MILLION DOLLARS

REAL ESTATE PAYMENTS            68 MILLION DOLLARS

MINORITY FIRMS

• 58, 829 minority firms with 6 billion dollars in sales,


• 6719 had employees, employing 57,887


• Annual payroll of 1.1 billion.


• From 15 percent of all firms in 1997 to 18 percent of all firms in 2002.


• Overall firms grew 11 percent during the same period.


• However Black firms grew 56 percent, Asian 28 percent and Hispanic 15 percent. American Indian firms had negative growth rates.

In terms of number of firms Black firms were 11th in the nation for Black firms, Hispanics 20th, Asian 21st and American Indian 22nd for their respective groups.

Ethnic Trends: Economic Contributions of Hmong in Wisconsin

Bruce P. Corrie, Ph.D
corrie@csp.edu
Emerging Markets Series
http://ethnictrends.blogspot.com

 
Hmong are adding much to the economic base wherever they live in Wisconsin. The data below compiled from Census 2000 illustrates ways in which they contribute to their local economies  as consumers, homeowners, renters and property owners.
 

• Buying Power of Hmong in Wisconsin: 234 million dollars


• Real Estate Taxes: 3. 3 million dollars


• Rental Payments: 1.3 million dollars

• Economic Contributions of Hmong in Selected Wisconsin MSAs

• Appleton-Oshkosh-Neonah MSA: Hmong have 32 million dollars in consumer buying power, pay 207 thousand dollars in gross rent and 434 thousand dollars in real estate taxes. 41 percent own their homes.

• Eau Claire, MSA: Hmong have 12 million dollars in consumer buying power, pay 68 thousand dollars in rent and 223 thousand dollars in real estate taxes. 51 percent own their homes.

• Green Bay, MSA: Hmong have 21 million dollars in consumer buying power, pay 145 thousand dollars in rent and 298 thousand dollars in real estate taxes. 34 percent own their homes.

• La Crosse, MSA: Hmong have 12 million in consumer buying power, pay 74 thousand dollars in rent and 226 thousand dollars in real estate taxes. 48 percent own their homes.

• Madison, MSA: Hmong have 21 million dollars in consumer buying power, pay 164 thousand dollars in rent and 405 thousand dollars in real estate taxes. 40 percent own their homes.

• Milwaukee-Racine, MSA:  Hmong have 69 million dollars in consumer buying power, pay 263 thousand in rent and 759 thousand dollars in real estate tazes. 58 percent own their homes.

• Wasau, MSA:  Hmong have 21 million dollars in consumer buying power, pay 155 thousand in rent and 363 thousand in real estate taxes. 44 percent own their homes.

Ethnic Trends: Minority Female Entrepreneurs, 2002

Take the Quiz: Minority Female Entrepreneurs 2002
Bruce P. Corrie, PhD, corrie@csp.edu.
Tel: 651 641 8226

What is the total number of minority female entrepreneurs in the USA?


Answer:  1. 5 million or 23 percent of all female owned firms with $119 billion in sales and employing almost a million people with an annual payroll of $21 billion.

Which minority group has the largest number of female entrepreneurs?

Answer:  547, 341 Black Female firms or 46 percent of Black firms. There were almost the same number of Latina firms, 540, 909.

Which minority group had the largest percentage of female minority firms with paid employees?

Answer: American Indian female firms – 30 %.

Which minority group had largest employment among female owned firms?

Answer: Asian female owned firms employed 430,884 people.

Which minority group had largest annual payroll among female owned firms?

Answer: Asian female owned firms over $10 million in annual payroll

How many female owned firms are there in Minnesota?

Answer:123 928 or 17 highest number in the nation

How many minority female owned firms are there in Minnesota?

Answer: Report is not yet out..check back at this site over the next few months.
Source: Survey of Business Owners, 2002. Author calculations.

Ethnic Trends: Income, Poverty and Health Insurance, US, 2005

Bruce P. Corrie, PhD Emerging Markets Series corrie@csp.edu

American Indian/Native Alaskan

Percent Uninsured (2002-2004 average) 29.0

Percent in Poverty (2002-2004 average) 24.3

Median Income (2002-2004 average) $ 33, 132

Black

Percent Uninsured (2002-2004 average) 19.8

Percent in Poverty (2002-2004 average) 24.4

Median Income (2002-2004 average) $ 30, 355

Hispanic (Any race)

Percent Uninsured (2002-2004 average) 32.6

Percent in Poverty (2002-2004 average) 22.1

Median Income (2002-2004 average) $ 34, 299

Asian

Percent Uninsured (2002-2004 average) 18.0

Percent in Poverty (2002-2004 average) 10.6

Median Income (2002-2004 average) $ 56, 664

White (not Hispanic)

Percent Uninsured (2002-2004 average) 11.0

Percent in Poverty (2002-2004 average) 8.3

Median Income (2002-2004 average) $ 49, 101

Foreign Born

Percent Uninsured (2003) 33.7

Percent in Poverty (Naturalized Citizen, 2003) 9.8

Percent in Poverty (Non Citizen, 2003) 21.6

Median Income (2002-2004 average) $ 39, 421

Source: U S Census, (2005), Income, Poverty,and Health Insurance Coverage in the United States, 2004.

The Dynamic Power of Ethnic Capital in Minnesota

Buying Power (Source: Selig Center)

• $ 11 billion in Minnesota
• $1.3 trillion nationally

Tax Base (Source: Author Estimates, Census 2000)

• 1.1 billion in state and local taxes
• $ 85 million real estate taxes
• $ 57 million in rent

Entrepreneurial Capital Latest Census Data from the Survey of Business Owners 2002 reveal that

• there are 22,405 minority firms in Minnesota with
• $2.7 billion in sales employing 31, 474 people
• with an annual payroll of 818 million dollars

Bruce P. Corrie, PhD, corrie@csp.edu

Latest Minority Voting Patterns, 2004

What are some trends that emerge from the latest minority voting data coming from the Current Population Survey, November 2004, U. S. Census Bureau?

A larger percentage of minorities who voted in the 2004 elections tended:

• to have some college degree or higher
• to have an income level greater than $50,000
• to be a Government Worker
• to own a house
• to have Rented a house for a few years
• to live in a no cash rental unit more than a year
• to be a Veteran
• to be 45 years and older
• to be a Naturalized Citizen

Biggest reason for not voting - Too Busy/Schedule Conflicts

There are significant ethnic differences in voting patterns among minorities.

Blacks have the highest voter turnout in Minnesota, followed by Hispanics and Asians. No data is available on American Indian voter turnout.

Bruce P. Corrie, PhD

Concordia University

Emerging Markets Series, 2005

corrie@csp.edu

Tel: 651 641 8226

Latest Cenus Data on Minority Firms in Minnesota

Bruce P. Corrie, PhD Concordia University Saint Paul corrie@csp.edu Tel: 651 641 8226 Latest Census Data from Census 2002 reveal that there are 22,405 minority firms in Minnesota with $2.7 billion in sales. 3497 of these firms had employees employing 31, 474 people with an annual payroll of 819 million dollars. Minority firms in Minnesota grew by 44 percent during 1997-2002 as compared to a growth rate of 8 percent of all firms. Minority firms as a total of all firms increased from 3.7 percent in 1997 to 5 percent of all firms in 2002. Black and Asian firms in Minnesota were among the top 10 in the nation in terms of growth in number of firms between 1997 and 2002. American Indian firms were 13th in the nation in terms of growth of firms during the same period. There were more than 4 million minority firms in the USA. Hispanics had the largest number of minority firms with over 1.5 million firms. Nationally Black firm had the highest growth rates among minority firms of 45 %- a fact not surprising and corroborated in recent national reports on entrepreneurship. Black firms also had the highest growth rate in receipts during the same period 1997-2002 among all minority firms (30%). Blacks had also the largest number of female owned minority firms. Nationally, minority firms grew much faster than the overall rate of 10 % during 1997-2002. Native Hawaiian and other Pacific Islanders had a growth rate of 67 %, Blacks 45 %, Hispanic 31 %, Asian 24 % . White firms grew by 8 %. In Minnesota, Black firms were the largest group followed by Asian, Hispanic and American Indian firms. Black firms also had the highest growth rates (95 %) during the period 1997-2002. Asian firms were the largest group of minority firms in three categories: firms with paid employees, sales volume and annual payroll. http://ethnictrends.blogspot.com/

The State of Black Entrepreneurship, 2005

Bruce P. Corrie, PhD

Concordia University-St. Paul, MN

Recent national reports document interesting trends in African American entrepreneurship.

1. The Global Entrepreneurship Monitor, 2003 found that Black Entrepreneurship is the highest among all groups in the USA. Total entrepreneurial activity for Blacks was 16.5 % compared to 10.8 % for Whites. Blacks had the highest rates for both opportunity based as well as necessity based entrepreneurship. Black entrepreneurs tend to be in age group 25-34 years.
2. According to another report, The Panel Study of Entrepreneurial Dynamics, a longitudinal study of 64,622 U.S. households:

• Black men and Black women are about 50 percent more likely to engage in start-up activities than Whites.
• Education significantly predicts nascent entrepreneurship for blacks: approximately 26 of every 100 black men with graduate education experience efforts to start a new business comparing to 10 of every 100 white men.
• Blacks in urban areas show a greater tendency to start businesses.
• Black women in the middle age groups, 25-54, have a much higher rate of entrepreneurship than other groups.
• Black men and women with higher income levels are more likely to start a business. They had the highest nascent entrepreneurship rates than all groups in the income range $76 K and up.
• Blacks working in full time jobs had the highest nascent entrepreneurship rates than blacks working part time or not working.

3. According to recent studies by Small Business Administration, Office of Advocacy, during the period 1997-2001:

• The number of Black owned firms increased from 308,260 in 1982 to 780,770 in 1997.
• Total receipts of Black owned firms in 1997 was $71 billion dollars
• Black share of business ownership increased from 2.56 percent in 1982 to 4.2% in 1997. Black-owned firms made up 15 % of minority employer firms.
• Black-owned business survival rate increased with the size of the business, reaching 75 % with receipts between $500,000 and 999,999. Survival rates were the lowest in the $10-25,000 range for receipts.
• Black-owned business expansion rates were the highest in the less than $5000 range for receipts.
• The contraction rates were the lowest in the firms with low receipts.
• The receipt range of $10,000 to $50,000 appears to be a critical stage for the survival and expansion of Black-owned businesses.
• The sectors with the highest survival rates for Black-owned businesses were Finance, Insurance and Real Estate, Agriculture, Forestry and Fishing, Services, Wholesale and Manufacturing.
• Top sectors for Black owned firms were Services (53%), Retail (10 %), Transportation (8%) and Construction (7%).
• During the period 1990-2000 Blacks received 4.15 % of SBA 7 (a) loans and 1.59 % of the 504 loans.
• During the period 1997-2001, in Minnesota Black-owned businesses were the only minority group showing net gain in jobs created.
• During the period 1997-2001, in Minnesota Black-owned businesses had a survival rate of 71 % compared to the state average of 74 %.
• During the period 1997-2001, in Minnesota Black-owned businesses had an expansion rate of 33 % equal to the state average.
• During the period 1997-2001, in Minnesota Black-owned businesses had a contraction rate of 14 % lower than the state average of 23 %.
• States with the highest survival rates for Black-owned businesses were Wyoming (93.5%), Utah, D.C., North Dakota and Rhode Island (72 %).

4. According to the 2002 Economic Census:

• Blacks firms make up 1.6 % of all employer firms in the country
• 31 % of Black employer business owners have some college education
• 25 % of Black employer business owners had a post-graduate degree, the second largest group in the country after Asians.

5. A survey of clients of top non profits in Minnesota revealed that Blacks make up the largest percentage of their clients: MEDA (46 %), NDC (40 %), WomenVenture (21%). For the clients using the state’s Urban Initiative Funds, 46 % were Black.

Bruce P. Corrie, PhD Emerging Markets Series

651 641 8226 corrie@csp.edu

The Color of Entrepreneurs Quiz

Which population groups have a higher percentage of employer business owners relative to their share of the population?

Answer: White, Asian

Which population groups have the highest percentage of employer business owners with a post graduate degree?

Answer: Asian, Black or African American

Which population group has the highest percentage of employer business owners with an educational background of high school or less?

Answer: Hispanic

Which population group has the highest percentage of employer business owners with some college education?

Answer: American Indian and Native Alaskan

Which population group has the highest percentage of employer business owners spending more than 60 hours a week on their business?

Answer: Black or African American

Which population group has the highest percentage of employer business owners who state that their business is the primary source of their income?

Answer: Hispanic

Which population group has the highest percentage of employer business owners who state that their business is not the primary source of their income?

Answer: Black or African American

Source: Survey of Business Owners, 2002

Bruce P. Corrie, PhD

Minnesota Needs to Leverage its Dollars Spent on Construction, Professional and Other Services to Grow Small and Minority Businesses

Minnesota has an important but underutilized tool in its economic development toolkit: Statute 16c.16, states, “The commissioner shall for each fiscal year ensure that small businesses receive at least 25 percent of the value of anticipated total state procurement of goods and services, including printing and construction.”

However, in all the billions that are currently being debated in the Minnesota House and Senate, such as the recently approved construction bonding bill valued at almost a billion dollars, there is hardly a whisper how such massive state spending can help build our economic base in Minnesota by implementing state statute 16c.16.

There is tremendous potential to grow our own small businesses in Minnesota. This is particularly true for minority and new immigrant businesses. Minority businesses are one of the fastest growing segments of the local and national economies. For example, according to the Economic Census 1997 data, Hispanic firms grew 350 percent during the time period 1987-97.

If you were a venture capital investor – would you invest in minority and immigrant businesses ? Ask the nationally know Kaufman foundation: In a recent report, MINORITIES AND VENTURE CAPITAL: A New Wave in American Business, “Taken together, 117 investments tracked by Bates and Bradford from the 24 MBE-targeted venture capital funds surpassed a 20 percent rate of return. During that same time period, according to industry analysts, the S&P 500 Index had a 17 percent return. Furthermore, Venture Economics (VE) and the National Venture Capital Association derive a Private Equity Performance index. VE tracks the performance of over 1,400 US venture capital and buyout funds on a quarterly basis. As of early 2001, the ten-year trailing average annual return for the Private Equity Performance Index was 20.2 percent.”

If private capital can do it why cannot public funded projects take the cue?

Some of the major benefits that come with the growth of minority businesses enterprises are revitalization of both the low income neighborhoods as well as the high tech corridors. There is documented evidence to show that minority firms hire minority and other local people, buy supplies from local businesses, pay rent and local taxes, invest in their communities and serve as positive role models. In many instances, owning a business is an effective way for new immigrants to achieve the American dream.

The minority economic base is an estimated 11 billion dollars in consumer power according to the Selig Center. Census estimates minority paying 85 million dollars in real estate taxes and 57 million dollars in rent. Minority communities pay an estimated billion dollars in state and local taxes. Minorities and immigrants make up both a critical proportion of essential workers (roofers, food processing and hospitality industry, agricultural workers) as well as a critical proportion of high tech workers (physical scientists, nuclear engineers, physicians, computer professionals and economists). Minorities with their global links can help Minnesota tap into global markets. Some of Minnesota’s fastest growing markets in Venezuela, Mexico, Argentina, Korea, Japan, Indonesia, Colombia and South Africa can and have benefited from these local connections.

If our policy leaders rise up to the challenge we will have a strong and diverse economy in Minnesota.

Bruce P. Corrie, PhD