by Don Smith
Professor Michael Hemesath is the chair of the Carleton economics department. He received his doctorate in economics from Harvard and began his time at Carleton in 1992. He was interviewed by a representative from the Carleton Ethanol Project to discuss the possible economic impacts and ramifications in reference to the construction of a large ethanol production plant in Bridgewater.
In this interview, Professor Hemesath explains the current economic state of the Rice County area, discusses the possible immigration of new workers, and the local infrastructure’s ability to support new residents. Professor Hemesath also talks about economic stability, education, class stratification, and the problems of the phenomenon known as N.I.M.B.Y., or Not In My Back Yard. Hemesath relates critical empirical and historical information regarding traditional effects of large new employers in small rural areas; he expresses his belief that the Ethanol plant is not necessary, but would also probably not be harmful on a local level. Professor Hemesath also cautions that there is no easy solution to this type of problem, regardless of whether the solution is economic, social, or otherwise: he is of the opinion that the possible effects of the construction are highly unpredictable.
The Carleton “Our Ethanol Debate” Project sincerely thanks Professor Hemesath for his insight and cooperation.
Click To Play Interview with Michael Hemesath
Hotspots: Points of Special Interest in the Interview
The mix between capital inputs and labor inputs (1:23)
Characteristic analysis and possible benefits of any new employer (3:36)
Possible immigration of new workers into the local area (4:32)
The variances in average cost of living in different areas in Rice County (4:59)
The effects of possible new workers on local infrastructure (6:23)
The historical empirical effects of an influx of new workers (8:22)
Local economic stability and character, the effects of education (9:16)
The ‘necessity’ of a large new local employer (10:16)
Professor Hemesath explains two relevant fundamental principles (11:25)
Effects of Ethanol on Global Warming and N.I.M.B.Y. (12:57)
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