Successful place-based policies require what we used to call "local boosters". One problem with so much of the so-called "Red States" is that the local rich are no longer boosters for their communities—indeed, no longer feel a part of the community in any meaningful way: Noah Smith: How to Save the Troubled American Heartland: "James Fallows and Deborah Fallows... notice a number of common approaches among towns that are on the mend. Two of these... universities and immigration...
...Creating a skilled workforce and making a town an attractive destination for companies looking to invest... is a function best served by community colleges and specialized public schools.... Universities’ function is different—they draw highly skilled individuals to a town, some of whom then start businesses and do other high-value work.... Immigrants, meanwhile, support a declining region’s tax base.... The authors describe a number of places where immigrants... provided a local labor force to lure business investment, and provided a shot of energy and cultural vitality.... Other successful approaches... local leaders who bring together government, business and nonprofits to carry out big projects.... I was reminded of Pike Powers, the consultant who helped create the public-private partnerships that made Austin, Texas, a world-class tech cluster.... The most successful cities are those where the government, the private sector and nonprofits all work in concert....
Although they don’t explicitly say it, Fallows and Fallows also provide a road map for how the American heartland needs to change. A landscape of small towns with populations in the hundreds or thousands needs to consolidate into a patchwork of small cities with populations in the tens of thousands. Small cities like the ones the authors visit offer much of the comfort, space and friendliness of the small-town atmosphere, while also taking advantage of agglomeration economies...
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