Redefining the "Crowding Out" Effect
In the field of economic development, the Crowding Out Effect has been used to refer to the disruptions in labor markets, and the associated impacts, in response to energy booms. In this thought piece, we apply the Crowding Out Effect concept to the potential loss of long-term economic development capacity that can occur when there is a long and sustained economic boom that dominates a community or regional landscape. Prolonged booms that overwhelm the development leadership and investment capacity of an area in the short run can undermine long-term diversified economic and community development that is needed to ensure regional resilience and prosperity once the boom has abated.