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different types of costs. The first are those bom by society through federal expenditures to 

 expand and then effectively manage public lands. Although the exact inventory levels are not 

 yet known, the procedures for establishing and paying these costs are laid out in the Act The 

 second are those bom by the local people and the local economy. This includes jobs lost in the 

 timber industry as well as changes in the local economy that are specifically due to the Act 

 Realistic projections of these costs are necessary to assess the true cost of the l^islation and 

 what measures would be effective in ensuring local economic vitality. 



The problem with most standard analyses of economic impacts is that they are ba^ed on 

 the industry and local economies of the 1970s and not the 1990s. Two major changes must be 

 addressed if realistic projections for the 1990s and beyond are to be developed. The first is the 

 distribution of jobs within the timber workforce itself. The second is that the timber industry 

 is no longer the m&jor engine of local economic growth in the region. My analysis of the 

 economic impact of timber harvesting in California suggests that, in some respects, a focus on 

 commodity production may have a negative or only neutral impact on overall economic vitality. 



Headwaters Forest Act Testimony, William Stewart, October 13,1993 



