‘Basic employment’ key for Northern Colorado

Employment in the goods-producing sectors is especially important to the export-base theory of growth of a region. Employment in these industries is often called “basic employment.”

The export-base theory says that a region grows by exporting goods and services, but especially goods, which generates a flow of money back to the region as the goods are paid for by consumers. This revenue is used to pay for the workers producing the goods, for expansion of the manufacturing companies – both facilities and employees – and for the taxes that support local government and infrastructure development. Secondary employee expenditures support all sectors…