This week in 1997, The Notorious B.I.G.'s (Biggie Smalls) "Mo Money Mo Problems" hit #1 on the charts. The song delivered one of life’s essential truths: Success creates more drama than legislators capping development in the Black Hills. The song, released after Biggie's tragic death, captured the paradox that haunts anyone who's ever achieved something good: the more you grow, the more complicated stuff gets. What started as a celebration of making it turned into a lyrical meditation on how success attracts naysayers from every fishing hole this side of the Missouri River.
The song has a few peculiarities. The first is that it’s probably the most notorious example of sampling ever created, taking lines from the classic Diana Ross song “I’m Coming Out” word for word. That’s why the original writers of Ross’s song were also credited as co-writers for “Mo Money Mo Problems”. The second, and there’s no way of sugarcoating this, is that it featured the now infamous Sean “Diddy” Combs, rapping. Back in 1997, Combs was known for being the producer who annoyingly inserted himself into his performer’s songs.
Remove Combs though, and Biggie’s song still paints a picture of paranoia, fake friends, and the exhausting need to maintain success once you've had a taste of it. It’s also become a sort of anthem for the hustle culture and its stress, but in a more ironic-tee shirt sort of way. Even Michael Scott got in on the act.
This month's economic indicators are a lot like that, staging their own Mo-Money-Mo-Problems play, with growth creating its own set of challenges. Gross sales jumped to $965 million (up 7% year-over-year) and construction is experiencing its own version of sudden wealth syndrome, with building permits jumping to 286 and valuation exploding to $65 million (nearly doubling from $33 million the month before). New housing permits also tripled to 71.
Employment reflects a more complicated story. Non-farm jobs slightly declined to 77,300 while average weekly wages dropped to $991 (down 3%). And education and health services dropped to 13,700 jobs, suggesting that even our most stable sectors are feeling a little pressure.
The real estate market is also acting strangely. Active listings surged to 403 (up 57%) while days-on-market increased to 45 days, creating a scenario where there's more inventory, but buyers are taking their time. Median prices are holding relatively steady, but the increased time on market suggests sellers are learning that mo' listings don't necessarily mean mo' sales.
What does it mean? Much like Biggie predicted, success in Rapid City is creating its own unique set of challenges. The good news is we're growing; the complicated news is that it requires constant navigation. But as any successful entrepreneur will tell you, having money problems is preferable to having no-money problems. Prosperity should never be assumed.
Stay safe and God-speed,
Tom