I hope you enjoy the current issue of the Gallatin History Quarterly  https://www.gallatinhistorymuseum.org/ Two of the articles came directly from FREE's programs.  These are my "Bozeman Must be a Chicago hotel..." and MSU Professor Jerry Johnson's account of Grizzly Bear restoration and economic progress in Greater Yellowstone.  FREE supported half of the printing costs of this issue.  Why?  This issue promotes our theme; entrepreneurship, the rule of law, and the market process conjoin liberty, ecology and prosperity.  These values are well expressed in FREE's home territory.  

It's no accident that for the past few years Bozeman has been America's fastest growing city under 50,000.  Here’s Money Magazine in 2017:  

Throughout our history Montana's prosperity was thwarted by two major liabilities.  Montana is the most remote of the 48 states and it suffers from a harsh climate.  This is changing.  In addition to the internet, Fed EX and UPS, eight major airlines now have direct flights from Bozeman-Yellowstone International Field to many major American cities.  Technological improvements in clothing, buildings, and vehicles has also tempered the adverse effects of frigid and torrid weather while a warming climate has been beneficial on net.  We no longer face weeks of feeding and starting machinery in negative 25 F degree weather.

Fifty years ago, Bozeman and the Gallatin Valley was a remote area with a small cow college noted mainly for it rodeo team.  It has evolved to become a highly attractive place, a magnet for high human capital.  It's known as a safe place in a beautiful, romantic land with good to excellent medical care and a wholesome culture.  No longer would a Los Angeles sophisticate say, "Bozeman? That must be a Chicago Hotel.  I've never heard of it."

“Bozeman? Must Be A Chicago Hotel. I’ve Never Heard Of It.”

Four decades ago Jack Cox, president of the Foundation for American Communications (FACS) in Pasadena, California called to discuss a program I was developing at MSU.*  

Here’s the proposal’s overview.  

My colleagues in economics and I would produce a set of seminars to help nationally significant editorial page editors better understand environmental policy. The emphasis would be on the “romance” sector; parks, wildlands, range and wildlife. Our innovation was to explain how responsible liberty and modest prosperity can foster sustainable ecology.  

Mr. Cox seemed enthused by our proposal and approach. This was mainly because in the 1970s linking ecology and economics was alien to conventional thinking about environmental policy. Now, in part due to work at MSU, this understanding is central to mainstream environmentalism.  

Mr. Cox asked me whether we’d hold the seminars in New York or in Los Angeles. I said no, they’d be in Bozeman. “Bozeman,” he replied, “That must be a Chicago hotel. I’ve never heard of it.”

I told Mr. Cox that Montana State University is in Bozeman and that some of America’s most loved romance lands surround it. Mr. Cox then explained that the editorial page editors of national papers and magazines would know nothing about Bozeman, had never heard of it, and surely would not accept my invitations. 

However, he had a suggestion: “If you want to hold the seminars in a hick town pick Denver.” Naturally, I rejected his invitation.  

Our first seminar attracted editors and writers from Business Week, The New York Times, The Wall Street Journal, Denver Post, and even the L. A. Times. Our seminar received high reviews and the supporting foundation renewed funding. The seminar series had a highly successful run until derailed by political interference with a university program.** 

Still, Mr. Cox had a point: Only 40 years ago Bozeman was an unknown town unless you followed college rodeo. Now it’s on many lists of “Top 10 towns.” Here’s MONEY MAGAZINE in 2017: 

 “It doesn’t get much more scenic than Bozeman, Mont., a picturesque college town nestled between four mountain ranges and located just 90 minutes from Yellowstone National Park. A paradise for outdoor enthusiasts, Bozeman boasts easy access to world-class skiing, fishing, hiking, rafting, and more.”

That’s the place we offered to editors and writers interested in environmental issues. Further, we had an innovative perspective, harmonizing responsible liberty with prosperity and sustainable ecology. It now seems odd, but these environmental policies were heretical in 1979. The logic is clear and compelling to those with open minds. Here is how it works.

Liberty permits and fosters environmental entrepreneurship. Consider the progress in stream restoration and solar applications. Liberty also encourages wealth creation over redistribution. And prosperous people often favor and can afford policies that promote environmental quality. In contrast, poor people worldwide are more willing to sacrifice ecology for income or basic subsistence.   

Forty years ago, most Greens were allergic to economic thinking. In contrast, my colleagues and I understood that people’s sensitivity to environmental quality increases with education and income. This is especially true of rural places blessed with the Gallatin Valley’s qualities of wildlife, scenery, and topography.  

Our population is not a random sample of America. People elect to live here, often at some cost in foregone opportunities and comfort. Montana remains the most remote of the contiguous 48 states. It’s also largely arid having only half the average precipitation of the Midwest. Further, it long had an extremely harsh climate with subzero temperatures common throughout the winter which seemed to last months too long. However, geography is no longer destiny.  

For historical and technological reasons involving communication, culture, education, and transportation, all of the costs listed above have declined throughout the Gallatin Valley area. Some dramatically.  

Consider the internet, MSU’s $100 million research programs, Bozeman Yellowstone International Airport, FedEX and UPS. Gore-Tex for clothing and Tyvek for housing protect from the elements. A conjunction of improvements has made our valley increasingly attractive. It’s a magnet for high human capital. Today’s problems involve crowding, congestion, and fears of losing paradise. This stands in sharp contrast with towns and counties in our region, the great majority of which are losing population.

Ramona and I enjoy traveling, observing, and interviewing people in our region. Several towns have environmental amenities similar to ours, White Sulphur Springs for example. Yet, White Sulphur doesn’t attract and retain the high human capital so evident in the Gallatin Valley. Why? Bozeman: “…also offers a charming downtown area and a surprisingly vibrant cultural scene, thanks to the presence of Montana State University and a number of art and music events like the annual Sweet Pea Festival.”  

The Gallatin Valley also offers good to excellent medical care, especially for a town under 50,000. Quality attracts quality. Human capital is contagious and self-replicating. The boom we enjoy, and fear is not a mere accident. Rather, it’s the consequence of natural endowments and human capital.  

Here is an oft overlooked blessing: Our highly attractive environment lacks any rich vein of gold, copper, or other precious mineral or energy. These resources drive and direct local economies for short periods, usually with outside control. Hence local social and business investments favor brains over bullion or BTUs.  

The results are evident in our top ten rankings. Dangers lie in the fruits of success.