Income and Wealth

Our 3.5 hour truck tour yesterday of Canyon de Chelly yielded another insight about income that doesn't show in the official income numbers. The tour started 20 minutes late and ended an hour late. Canyon de Chelly is a National Monument run under a trust agreement, we were told by our driver / guide, between the Navajo Nation and the federal government. The canyon entrance is the access point. Transportation is truck, horse or foot. Tourists may not come in on their own. 

The first stop was a small privately owned farm. The ownership is a legacy of the Navajos return from exile at Fort Sumner. Some land was provided as recompense. When the truck, carrying about 20 people, stopped, four children made their way from the farmhouse, equipped with smiles, bead necklaces and small rugs. The passengers purchased maybe $100 worth of goods, all using cash. Tour demand surely varies. On our day, Sunday, May 11, there were two half-day tours and an all-day tour. Figure 60 people and as a pure guess, perhaps $250 in sales. I would be very surprised if any of that money was reported. To a fair degree, this family is off the economic grid. They are also off the power and water grids, our guide said. The money allows the family to live better than their probably small officially measured income allows.

The tale is repeated here because of my recent syndicated column that raised a number of issues about a report, released in New Mexico by Voices for Children, One of my points is that a few people have cash income that brings them a better life than their reported income would allow.  The VC spokeswoman complained about some of my column points. However, I got flack about the basic problem with the report which was unhappy that the increasing income gap between the lowest 20% of earners and the highest 20%. I said that the two groups earnings could not be compared over time because membership in each group changes. It it not inconceivable, for example, that someone could be in the low group and then a few years later be in the top group. I got no argument from VC on this point.

Income that probably shows in the numbers goes to the craftspeople producing jewelry sold by traders and other retailers. The income probably shows because the businesses keep records. A long-time Shiprock area trader told us that increasing prices of gas and silver are making it very tough on the craftspeople. The work is done by hand which means volume is low. Traditionally, they have used a variety of outlets, meaning they must drive among the outlets. The driving is done in pickups and SUVs, neither known for high gas mileage. Chevron gas prices were $3.64 / gallon in Chinle yesterday and $3.83 in Cuba today.