The Economic Impact of the Horse Industry
THE ECONOMIC IMPACT OF THE HORSE INDUSTRY
by MARIA A. CERASI
submitted to Mr. Henry Ryder
PRINCIPLES OF ECONOMICS II
GLOUCESTER COUNTY COLLEGE
APRIL 2012
People often view the equine industry as nothing more than simply an expensive hobby. However, in actuality it is far more than just that. The horse industry has an enormous impact on the United States economy and covers a vast horizon of different areas. From top-notch Thoroughbred racing to the simplicity of a backyard companion horse, the industry provides about 460,000 full-time equivalent jobs and has a direct economic effect on the United States of about 39 billion dollars annually. After taking into account the money multiplier effect of spending by suppliers and employees in the industry, this number grows even larger to create about 1.4 million full-time equivalent jobs nationally with a 102 billion dollar annual impact on the United States economy (“National Economic Impact”). Studies show that the equine industry has a direct effect on gross domestic product (GDP) in the United States. Between the different areas of the horse business, including but not limited to racing, showing, and leisurely riding, about 38.8 billion dollars of goods and services are produced, leaving an impact of 101.5 billion dollars on US GDP. Taxes paid by the equine industry also affect the economy in the United States, with approximately 1.9 billion dollars total in taxes coming from this industry. Federal taxes amount to 588 million dollars, state taxes are 1,017 million dollars, and last but not least, local taxes are equal to 275 million dollars (“National Economic Impact”). Many studies have been done in different states to determine the economic impact of the horse industry, including a study from the Rutgers Equine Science Center (“New Jersey Equine”), a study from Alabama
by MARIA A. CERASI
submitted to Mr. Henry Ryder
PRINCIPLES OF ECONOMICS II
GLOUCESTER COUNTY COLLEGE
APRIL 2012
People often view the equine industry as nothing more than simply an expensive hobby. However, in actuality it is far more than just that. The horse industry has an enormous impact on the United States economy and covers a vast horizon of different areas. From top-notch Thoroughbred racing to the simplicity of a backyard companion horse, the industry provides about 460,000 full-time equivalent jobs and has a direct economic effect on the United States of about 39 billion dollars annually. After taking into account the money multiplier effect of spending by suppliers and employees in the industry, this number grows even larger to create about 1.4 million full-time equivalent jobs nationally with a 102 billion dollar annual impact on the United States economy (“National Economic Impact”). Studies show that the equine industry has a direct effect on gross domestic product (GDP) in the United States. Between the different areas of the horse business, including but not limited to racing, showing, and leisurely riding, about 38.8 billion dollars of goods and services are produced, leaving an impact of 101.5 billion dollars on US GDP. Taxes paid by the equine industry also affect the economy in the United States, with approximately 1.9 billion dollars total in taxes coming from this industry. Federal taxes amount to 588 million dollars, state taxes are 1,017 million dollars, and last but not least, local taxes are equal to 275 million dollars (“National Economic Impact”). Many studies have been done in different states to determine the economic impact of the horse industry, including a study from the Rutgers Equine Science Center (“New Jersey Equine”), a study from Alabama
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