Gatton's Troske Speaks to Future of Kentucky Economy

LOUISVILLE, Ky. (Nov. 3, 2009) -- The chair of the Department of Economics in the University of Kentucky's Gatton College of Business and Economics, Ken Troske, Tuesday presented a strong case that the Commonwealth must find a way to make a definitive commitment to a long-term investment in education if the state ever hopes to have a future of sustained economic growth.

Troske, director of UK's Center for Business and Economic Research and the Sturgill Endowed Professor of Economics in the Gatton College, spoke at the Economic Teamwork forum held at the Kentucky International Convention Center in downtown Louisville.  The event, billed as a candid regional outlook, was sponsored by the Louisville Branch of the Federal Reserve Bank of St. Louis.

"The people of Kentucky need to view education as an investment that pays dividends over time, and not simply as an entity to be consumed," said Troske.

Troske cited statistics which show that attaining a four-year college degree results in an individual earning an average of 400 to 500 percent more over a working lifetime than does a person without such a degree.  Turning to the audience of more than 150 regional economic leaders, Troske said, "I am certain that anyone in this room would be thrillled with a stock investment that grew by 400 to 500 percent over time."

Troske said that innovative activity resulting in faster economic growth is directly tied to a state's level of educational attainment.  

Other researchers speaking at the Economic Teamwork forum included University of Louisville economist and professor Paul Coomes, and Michelle Trawick, chair of the Department of Economics at Western Kentucky University. 

In addition, Tom Garrett, assistant vice president in research at the St. Louis Fed, gave a report on the current state of the national economy and the outlook for the near term.  Garrett said unemployment is likely to stay at a high rate for the next year or so.