Wednesday, July 20, 2016

Let Rust Belt Cities Die?


The latest from a junior professor who lives in Texas and thinks rust belt cities need to die off, or at least go fallow.

In The Atlantic, Professor Galen Newman of Texas A & M opines on his vacant land research.



The research has led to a discussion of "smart shrinkage" and "smart decline."


We cannot ignore this kind of thinking, as it might influence politicians, and new solutions are needed. Detroit has something approaching 60 square miles of wasteland, so this is not so far fetched. 

We do not have to surrender though.

Unless there is some drastic change in Washington, the rust belt economies are in trouble for a long, long time.

Not something to make one cheerful.


Friday, July 8, 2016

Are We Too Late?


A hot phrase among the economists  and analysts who analyze the Rust Belt is "post-industrial."

This implies we have reached a tipping point at which advanced economies will dramatically reduce manufacturing activity and jobs (although output may not drop as far)  and will focus on service, health care, research and etc.

When NAFTA was passed we were told the displaced manufacturing workers would soon enough be moved to high value service jobs (apparently this meant pushing shopping carts around the parking lot of Wal-Mart).

Does the post-industrial mind set dominate Washington, guaranteeing policy hurting the Rust Belt?

Are Donald Trump's policies to bring back manufacturing jobs just a fantasy? Will Hillary Clinton's new found populism make a difference?

Can every Rust Belt city be like Pittsburgh?

Does anyone outside the Rust Belt really care?