Thursday, March 12, 2015

Richard Florida thinks that Rustbelt Cities can come back

He says so here.

His basic argument is that all it would take is high-speed intercity transport and revitalized downtowns to do this job. I am skeptical.

I should begin by saying I like the Midwest a lot--I grew up in a small city in Western Wisconsin, and spent most of my professional life in Madison. I have always rather liked cities like Cleveland, Milwaukee, St. Louis, and Duluth. I think Pittsburgh is absolutely lovely (you read that right) and is a terrific university town.

But these places (along with Detroit, Buffalo, Syracuse, etc.) have a history of concentrated manufacturing employment, which in turn created labor markets where workers had few incentives to become well eductated (for the classic article on this, see Benjamin Chinitz, Contrasts in Agglomeration: Pittsburgh and New York, AER (1961). All these places are, moreover, cold. Two of the most important predictors of population growth since World War II have been education levels of the population, and climate.

Cities in the Midwest with higher educational attainment levels, such as Minneapolis, Chicago and Columbus, have done better. I doubt downtown condos and high speed rail will turn Scranton into Floreance.

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