> Yet in the short term, significant transformations have often also produced lower wages for many, hollowed out regional economies, and deepened inequality.
"Short term" being rather loosely used? Most industrial regions have never recovered. Look at Gary Indiana, Detroit and surrounding towns, Toledo, other regions that were dependant on manufacturing or mining. Most have been stagnating for decades; few have found a path back to a thriving economy.
Those places aren’t isolated though. Many of their residents (and especially their children) have left and found opportunities in other parts of the country.
Economists tend to prefer policies that help people, not places. Gary, Indiana just doesn’t have any geographical advantages that make it competitive.
I think, if anything, the mistake was to allow people in those places to believe there would be an eventual turnaround by trying to prop up uncompetitive manufacturing industries.
Gary has a huge geographical advantage in being located on the Great Lakes. This really cuts the cost of transport for bulk materials. And it gives them a reliable source of fresh water. It could be a great site for a nuclear power plant. Regardless of how AI economic policy shakes out, we're going to need a lot more electrical power.
SoftTalker · · focus · HN ↗
"Short term" being rather loosely used? Most industrial regions have never recovered. Look at Gary Indiana, Detroit and surrounding towns, Toledo, other regions that were dependant on manufacturing or mining. Most have been stagnating for decades; few have found a path back to a thriving economy.
baron816 · · focus · HN ↗
Economists tend to prefer policies that help people, not places. Gary, Indiana just doesn’t have any geographical advantages that make it competitive.
I think, if anything, the mistake was to allow people in those places to believe there would be an eventual turnaround by trying to prop up uncompetitive manufacturing industries.
nradov · · focus · HN ↗