Radio Iowa, IA
12-26-07
Economist says economic impact of Iowa Caucuses hard to pin down
By Darwin Danielson
An Iowa State University economist says while the spotlight is on Iowa for the
first presidential test, it's it's impossible to put a dollar amount on the economic
impact of the Iowa Caucuses. David Swenson says most of the money
generated comes from the campaigns and the national media that descend on
the state.
Swenson says the amount of money spent in the state's economy is "really
small" compared to the state's gross product of 115-billion or more per year. He
says this year's longer caucus season doesn't necessarily translate to a greater
economic boost.
Swenson says the season may look longer, but he doesn't really think it is, as the
spending has to coincide with tapping into the awareness and consciousness of
the caucus goers and it's a very short window. Swenson says the direct
economic impact is felt in the state's two largest cities- Des Moines and Cedar
Rapids. Swenson says hotels, restaurants and car rentals will see the greatest
bump in spending.