Graves County vs. Kentucky Comparative Trends Analysis: Per Capita Personal Income Growth and Change, 1969-2022 Introduction Graves County: 2022 PCI = $50,193 2022 Percent of State = 96.67% Kentucky: 2022 PCI = $51,921 Per Capita Income (PCI) is one of the most widely used indicators for gauging the economic performance and changing fortunes of local economies. It is used as a yardstick to assess the economic well being of a region's residents and the quality of consumer markets. It serves as a barometer for calibrating the economic performance of a region over time and to judge differences in relative economic prosperity between regions. Shifting trends in local per capita income growth have important social and political ramifications and significant implications in formulating local economic development strategies and initiatives. Data Definition: This measure of income is calculated as the total personal income of the residents of an area divided by the population of the area. Per capita personal income is often used as an indicator of consumers' purchasing power and of the economic well-being of the residents of an area. Personal income is measured as a flow throughout the year, while the measurement of population is at one point in mid-year. Therefore, per capita income is distorted if a significant change in population occurs during the year. For smaller counties in particular, per capita income in any given year may be exceptionally high or low for the short run because of unusual local conditions, such as a bumper crop, a catastrophe, or a major construction project as the building of a dam or nuclear power plant. Farm incomes are notorious for being especially volatile year-to-year, owing to changing weather, commodity market conditions, and alterations in government programs. Therefore, the per capita income of farm-dependent counties may exhibit sharp fluctuations over time. The presence of large institutional populations--such as residents attending a local college or the residents of a local prison or state mental institution--can significantly lower the per capita income estimates of an area. Such results may not reflect the relative economic well being of the non-institutional population and may mislead if care is not given to their interpretation. Graves County Per Capita Personal Income, 1970-2022 Current vs. Constant Dollars Figure 1. Figure 1 depicts Graves County's annual per capita personal income over 1970-2022 in current and constant (2017) dollars. Constant dollar measurements remove the effects of inflation. They allow for comparison of changes in the real purchasing power of Graves County over time. When measured in current dollars, Graves County's per capita personal income increased 1,539.53%, from $3,061 in 1970 to $50,193 in 2022. When measured in constant 2017 dollars to adjust for inflation, it advanced 179.27%, from $15,488 in 1970 to $43,254 in 2022. Real Per Capita Personal Income, 1969-2022 Figure 2. Figure 2 traces Graves County's and Kentucky's annual real per capita personal income for the period 1969-2022 to illustrate real per capita personal income patterns over time. During this 54-year period, Graves County's real per capita personal income rose from $14,700 in 1969 to $43,254 in 2022, for a net gain of $28,554, or 194.24%. In comparison, Kentucky's real per capita personal income increased from $16,082 in 1969 to $44,743 in 2022, for a net gain of $28,660, or 178.21%. Real Per Capita Personal Income Indices (1969=100): 1969-2022 Figure 3. Figure 3 portrays Graves County's real per capita personal income growth in a broader context by offering direct comparisons across time with Kentucky, the United States. The growth indices shown here express each region's real per capita personal income in 1969 as a base figure of 100, and the real per capita personal incomes in later years as a percentage of the 1969 base figure. This method allows for more direct comparison of differences in real per capita personal income growth between regions that may differ vastly in size. Graves County's overall real per capita personal income growth was 194.24% over 1969-2022 outpaced Kentucky's increase of 178.21%, and topped the United States' increase of 171.04%. Per Capita Personal Income as a Percent of the U.S. Average: 1969-2022 Figure 4. Figure 4 portrays the trends for per capita personal income relative to the national average by tracing Graves County and Kentucky per capita personal income as a percent of the national average over 1969-2022. In 1969, Graves County's per capita personal income amounted to 70.62% of the national average; in 2022, it approximated 76.67%. Similarly, in 1969, Kentucky's per capita personal income totaled 77.26% of the national average; in 2022, it consisted of 79.30%. Graves County Real Per Capita Personal Income: Annual Percent Change, 1970-2022 Figure 5. Figure 5 highlights the short-run pattern of Graves County's real per capita personal income growth by tracking the year-to-year percent change over 1970-2022. The average annual percent change for the entire 53-year period is also traced on this chart to provide a benchmark for gauging periods of relative high--and relative low--growth against the backdrop of the long-term average. On average, Graves County's real per capita personal income grew at an annual rate of 2.15% over 1970-2022. The county recorded its highest growth in 1984 (14.77%) and posted its lowest growth in 1980 (-8.03%). In 2022, Graves County's real per capita personal income declined by -2.84% Graves County Real Per Capita Personal Income: Annual Percent Change and Decade Averages Over 1970-2022 Figure 6. Over the past five decades some counties have experienced extreme swings in growth, and often such swings have tended to coincide with the decades themselves. Figure 6 again depicts the annual percent change in Graves County's real per capita personal income since 1970, but this time they are displayed with average growth rates for the decade of the 1970s, 1980s, 1990s, 2000s, 2010s, and 2020-2022. During the 1970s, Graves County's annual real per capita personal income growth rate averaged 4.04%. It averaged 1.48% throughout the 1980s, 1.31% throughout the 1990s, 1.94% in the 2000s, 1.17% in the 2010s, 4.79% thus far this decade (2020-2022). Real Per Capita Personal Income Growth: Average Annual Percent Change by Decade Figure 7. Figure 7 compares the decade average growth rates for Graves County noted in the previous graph with the corresponding decade averages for Kentucky and the nation. As the chart reveals, Graves County's average annual real per capita personal income growth outpaced Kentucky's average during the 1970s (4.04% vs. 2.94%), trailed Kentucky's average in the 1980s (1.48% vs. 1.90%), fell below Kentucky's average during the 1990s (1.31% vs. 2.25%), led Kentucky's average during the 2000s (1.94% vs. 1.19%), recorded under Kentucky's average in the 2010s (1.17% vs. 1.50%), and recorded above Kentucky's average over the 3 year period of the current decade, 2020-2022 (4.79% vs. 2.31%). Finally, relative to nationwide real per capita personal income growth trends, Graves County registered above the nation in the 1970s (4.04% vs. 2.37%), trailed the nation during the 1980s (1.48% vs. 2.19%), fell under the nation during the 1990s (1.31% vs. 2.01%), outperformed the nation in the 2000s (1.94% vs. 1.10%), lagged the nation during the 2010s (1.17% vs. 1.97%), and recorded above the nation over 2020-2022 (4.79% vs. 1.78%).
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