Texas Expects Economic Boom From Soldiers

[Snellius]

EL PASO, Texas Sept. 25, 2004 — The relocation of thousands of soldiers to Fort Bliss over the next decade could revive the economy of El Paso, which has long been one of the nation's poorest cities.

The Army announced in July that Fort Bliss, which has about 12,000 soldiers, would gain another 3,800 troops by 2006. The post could absorb up to 10,000 more over the next decade as part of President Bush's plan to bring 70,000 soldiers home from overseas posts, according to Sen. Kay Bailey Hutchison, a Republican.

The first wave of troops would bring an estimated $586 million to the city's economy each year, and more than 1,000 additional jobs, according to a University of Texas-El Paso study. The money would come from soldiers and their families buying homes, paying taxes and purchasing goods and services.

El Paso, a city of about 563,000 where the median household income in 1999 was $31,051, has struggled to replace lost jobs as its textile businesses folded over the last decade and factories across the Mexico border lost ground to China and other countries offering cheaper labor. Some retailers closed their doors as the economy sputtered along and the best and brightest left seeking better opportunities.

http://abcnews.go.com/wire/US/ap20040925_368.html

[leftchick]

1. 70,000 Home?!?

I don't think so. The US is just relocating bases overseas closer to our oil... :eyes:

[Media_Lies_Daily]

2. This article is planted disinformation of the worst kind...

...if FratBoy gets re-elected, those troops will be moved out to bases from which they will participate in the planned invasion of Iran.

This is a very cruel thing to tell those 70,000 troops and their families. It does nothing but get their hopes up that they may be living in the U. S. for a while, only to pull the rug out from under their feet.

[FLSurfer]

3. I don't understand economics

very well, but how can 3800 troops generate $586 million.
Simple math equals $154,210 per individual, per year.
Sounds exaggerated.

[GoldenOldie]

4. It's the Trickle down that Cons talk about

Even with this small number of troop movement it will justify the support that these troops need....medical, housing, maintenance, etc. Now who best will be able to furnish these needs, George and Dick's friends from Texas and with no-bid contracts. These fellar's don't come cheap.

It's "WAR Profiteering" at it's best. The trickle will quickly be be absorbed by the friends.

[Ilsa]

5. IIRC from my eco courses, it has to do with dollar velocity.

Money "turns over" multiple times, and they have a multiplier for it. So if a soldier and his/her spouse have a combined net income of $50,000, and if there is only a 3% savings rate ($1,500), then $48,500 will be disposable, much in that community. The landlord pays his taxes and mortgage, and has income on the rent, which gets disposed, the dry cleaners pays for chemicals and also has income which is disposed of, the auto mechanic gets paid for repairs, and pays for his parts and has income to dispose of, etc.

Of course, the calculations for coming up with this stuff is pretty complicated. I had to tell a friend yesterday that her son, a freshman in college, could expect to do a lot of higher level math as an economics major.

[haele]

6. It's not just the number of troops...

It's also the number of support jobs that occur, the increase in infrastructure development, etc, etc...

When an Aircraft Carrier (onboard "population" - 5000 sailors and their families, give or take a couple hundred depending on the air wings and staff assigned onboard)pulls into San Diego for a period lasting at least a year, the city can expect over one billion dollars in additional revenue for that year. That's not counting the other ships that pull in with the carrier, that usually pull in a couple million per ship.

You have to house them, feed them, entertain them, educate their kids, police them, protect them from fire, floods, earthquake, provide for their utilities and home services, service their command structures, employ their spouses and dependents, provide services for their visitors and guests...

Base closures and expansions can make or break businesses and communities.

Haele

[newyawker99]

12. Hi FLSurfer!!

Welcome to DU!! :toast:

[sr_pacifica]

7. Disgusting

That a city that's become poor through outsourcing now has to depend on a growing military base to relieve it of its poverty. The sinking economy just works so well for Bush---he gets more cannon fodder too from men and women desperate for work.

[Roy]

9. Actually....

This solves all of our economic problems.

Put a military base in every state, half of the states population is required to enlist. VOILA!!!

/SARCASM

[Iceburg]

8. Fortifying Texas in the event of secession

[mhr]

10. You Mean Fortifying Texas In Case Of Revolution

Someones got to protect the candy ass in Crawford!

[0007]

11. Things have gotta be pretty fucking bad that a city like El Paso

has to depend upon the military personnel for survival.