Traveling back to my hometown for Christmas reminded me that economies don't just cover large regions. They're small and localized, too. In Latrobe, Pennsylvania - the home of Arnold Palmer - during 2006 the famed Rolling Rock Beer brewery was shut down when it was bought by that beer company in St. Louis.
The few hundred workers were given a year's severance pay and now many have returned to a plant operating at a smaller capacity, but operating nevertheless.
My sister, Chrisia Simkovich, a real estate agent with Northwood Realty in Latrobe and Westmoreland County, said about 80% of the workers had returned. Then she told me about plans UPS has to operate a distribution center out of the Westmoreland County airport. It may be 3 - 5 years distant but there are plans to expand the airport.
Currently, Northwest Airlines flies from Latrobe to Detroit two times per day and Continental Airlines may be operating from there as well.
In all, Latrobe isn't doing too badly. I can't say it's great. I'll research exact figures. But I heard from several sources that the Latrobe area and Westmoreland County has benefitted from the high taxes of Allegheny County and what appears to be mismanagement of Pittsburgh city government.
The other point is we're looking to buy a piece of real estate there. Why not? In Southern California, properties have appreciated to a ridiculous degree. Our house has more than tripled in value in 14 years.
Why is it important to understand local economies and not just national or global economies?
Partly as a defense against news reports which so often report negative news. And if you keep your personal finances in order - keeping high interest debt to a minimum, investing small amounts reguarly - then you begin to have more control and understanding of your financial abilities.
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