12/09/08
I wrote yesterday on New North Summit keynote speaker Richard Longworth and his book, Caught in the Middle. Now that I’ve heard him and read his interesting and thoroughly researched book, I’m going to try to pick apart a few of his views. (If our roles were reversed, I’m sure he’d do the same thing, because that’s what journalists and commentators do.) But these are not just my views; these are also some of the views of those with whom I enjoyed the Taste of Entrepreneurship. (Can’t go wrong with crab rangoon, or bacon, or shrimp.) One thing Longworth is correct about is the net positive influence of immigration. The current wave of immigration from Spanish-speaking countries is just the latest phase of immigration to the U.S., and immigrants have always taken jobs that more-established people refuse to do. (In Iowa, it’s working in meatpacking plants, apparently.) There has yet to be an immigrant group in this nation’s history that hasn’t assimilated into our culture, including primarily speaking English, by its second generation. (And how has the Republican Party’s majority anti-immigration stand worked out for the GOP?) Longworth believes the Midwest must work together as a region to market itself and deal with globalization’s negative effects. Working together is laudable, but the problem with that approach is that the rewards of growing businesses don’t go to a region as a whole, only to whatever state is the home of a growing business. Unlike a regional in-state approach such as the New North, where growing, profitable businesses and their employees pay various state taxes that benefit the state as a whole and thus everyone in that region, if A Corp. decides on Wisconsin instead of Minnesota, Minnesota doesn’t get very many benefits unless A Corp. is located on near the Minnesota state line and some of its employees live in Minnesota. (That is the case for some Chicago-area, Twin Cities-area and Dubuque, Iowa, businesses.) The fact that only two governors in (Longworth’s definition of) the Midwest are Republican makes no difference — until Wisconsin voters vote for Illinois’ governor, Illinois’ governor will see every business that moves into Wisconsin (particularly those who choose Wisconsin over Illinois) as a loss for Illinois. Longworth is probably right in his assertion that state government is inadequate to deal with globalization’s negative effects, and he’s certainly right in his assertion that every Midwest state has far too many units of government. (Note how many of them assess various taxes on your property.) But one person at the Taste of Entrepreneurship noted that businesses dominate involvement in the New North; if the New North was a government venture, he said, it would undoubtedly fail. So either a majority of voters in each state of the Midwest needs to give the signal that their states’ elected officials need to work together with their across-the-state-line counterparts with each other, or else watch their political careers fail, or these efforts need to start from the ground up — organizations like the New North and the Milwaukee Seven, and others throughout the Midwest. Longworth may be right that having Illinois Sen. Barack Obama as our next president will help the Midwest. Then again, Obama has lived in the Midwest for less than half of his life, which makes one wonder what his commitment to the Midwest really is. (In case you think that’s excessively cynical, recall that Democratic presidential candidate Robert Kennedy represented not Massachusetts, where he was born, but New York, where he lived for less than four years, in the U.S. Senate.) And to believe that a majority of Midwestern voters choosing Obama for president is a sign of unity seems an overstatement, particularly because, if our economy is not better by November 2012, those same voters are likely to choose whoever opposes Obama. I wrote Monday that I felt that Longworth had spent too much time in Iowa, not enough time in Wisconsin, and apparently no time outside Madison and Milwaukee. Northeast Wisconsin businesses have proven marvelously innovative over the decades, as Marketplace has reported in our 20 years. Note that Koch Industries, the largest privately held U.S. company and a global energy company, purchased Georgia–Pacific in 2005. As someone pointed out to me a few months ago, why would Koch purchase a paper company? Perhaps Koch sees Georgia–Pacific’s paper mills as sources of biomass for biofuels, and paper machines secondly. I also have a hard time thinking of Chicago as being the “global city” that Longworth claims it is. Chicago has a lot going for it, but Chicago also has high crime rates and, particularly important for business, an endemic, pervasive culture of political corruption, both in Chicago and in Illinois. (So do many other countries, but I doubt that fits Longworth’s definition of “global city.”) That corruption, by the way, is found in both political parties — Obama got help of several varieties from Democratic fixer Anton “Tony” Rezko, while former Republican Gov. George Ryan is now serving federal prison time in Oxford on various corruption charges while he was Illinois’ secretary of state. (Illinois has the dubious honor of having three governors imprisoned in 30 years, and its current governor, a former Chicago congressman, is under investigation. Longworth is a fan of “global cities,” which are full of the “creative class” touted by George Mason University economist Richard Florida. Big cities can be exciting places to live. Big cities are not necessarily where you want to raise your family, however, for many reasons. (Here’s just one: Note that the Obamas are having their children attend the private school that Chelsea Clinton attended, not the Washington, D.C., public schools.) What is exciting and cool at 25 often is not by 35. Then again, I also have a hard time believing things are as dire in at least Wisconsin as Longworth believes. Another Taste of Entrepreneurship hors d’oeuvres companion, who used to work in outplacement, pointed out that people resist change less than fear uncertainty. And these are very uncertain times, both for reasons noted in Longworth’s book and because of our current economic situation. But people are much more adaptable than they often are given credit for being. If they weren’t, there would be only one fire truck manufacturer in Northeast Wisconsin, instead of several. If they weren’t, the Midwest would have emptied out a long time ago. To say that Midwesterners are particularly resistant to change than other parts of this country is, I think, to engage in a bit of stereotyping. My father worked for one bank (with three different owners) in his 40-year banking career. I’ve had six different employers (one twice, as you know) in my 20-year journalism career, and I am far from unique among my generation. And values and work ethic are two things that, if they’re good, should not change. Every person at Monday’s New North Summit has chosen, for one reason or another, to live here. There has never been, in our nation’s history, as much economic and transportation mobility as we enjoy today. And yet, regardless of rotten weather, or high taxes, or Northeast Wisconsin’s other challenges, we have chosen not just to live here, but to make a living and a life here. Initiatives like, but far from limited to, the New North also are the efforts and results of people working to make this a better place to live. If this area wasn’t worth being here, these efforts wouldn’t be taking place. Update: The aforementioned investigation of Illinois Gov. Rod Blagojevich has resulted in his arrest this morning on corruption charges. That would be four governors indicted and three imprisoned in the past three decades. Trackback address for this postTrackback URL (right click and copy shortcut/link location) 1 comment
Comment from: Richard Longworth [Visitor] · http://www.thechicagocouncil.org
As an author, I’m properly grateful for the attention you gave to my book and to my ideas, laid out at the NEWNorth Summit. I’d be bored and disappointed if you did nothing but agree. It’s nice to have people nodding in agreement, but sometimes they’re just nodding. Much better to have a debate. Let me join in, by commenting on your comments. (As you said, that’s what journalists do.)
You say a regional Midwestern marketing and development strategy won’t work, because the only benefits go to the state or locality that actually gets the investment, not to the Midwest as a whole. Narrowly conceived, that’s true. But it assumes that individual states and localities can thrive in a rusting, dying region. Granted, economic lightning might strike a region like New North, while the rest of Wisconsin or the rest of the Midwest crumbles. But don’t bet on it. Regions do rise and fall together. Look at New England: boomtime in shoes, textiles and other industries, busttime when those industries went south, renewed boom (except for the far reaches, like Maine) when New England recovered on the basis of high tech. Or look at the South: a bad century, somewhat like the Cubs, from the Civil War to the 1960s, when air conditioning was invented and the Old South became the Sun Belt. Some places, like Atlanta, have done better than others, like the Delta. But overall, the South has drawn in industry, investment, people and money as a region. Or look at the Midwest: we’ve been living for the past century on the explosion of innovation and entrepreneurialism that burst from the region as a whole, with one good idea (the invention of the car, for instance) spawning tons of other ideas (ignitions, tires, ball bearings, etc.) and creating industries, like steel, across the Midwest to feed these entrepreneurial businesses. Steel mills in Chicago, in turn, created demand for iron and coal throughout the Midwest and, in time, spawned the farm equipment businesses in Wisconsin and elsewhere. In other words, the Midwest rose as a region, thrived as a region and, alas, is now declining as a region. My point: economic development seldom happens in isolation. So what if Minnesota gets that factory? Wisconsin will get the next one. Better for the two states to work together. You’re right, though, that whenever a factory gets built somewhere in the Midwest, the governors and state governments of the neighboring states see this as a defeat. My point is that this idea is just dumb – and is a really good reason why we have to stop looking to state governments to lead the next generation of economic development. They haven’t learned yet, and probably never will learn. (Talk a bit to some ex-governors, and they’ll tell you that they know it’s dumb.) You quote a visitor to the Taste of Entrepreneurship to the effect that, if New North was a government venture, it would fail: instead, it succeeds as a collaboration between business, education and other players, with governments helping out but not leading. Absolutely right. This is the kind of collaboration we need not just within regions like New North but across the Midwest. Bobby Kennedy moved to New York specifically to get elected to the Senate. He’d never lived there before he declared for the Senate. Obama’s been around Illinois, Chicago and the Midwest for more than 20 years, working in the nabes, practicing law, teaching at the U of Chicago, serving in the state legislature. He has indeed lived here only half his life – but that’s longer than he ever lived anywhere, and the Midwest is truly home to him and his family. So yes, I think the Midwest can push this administration’s Midwestern buttons, especially since the entire region voted for him. Granted, we’re as fickle as any voters, so you’re right that if he doesn’t come through, we’ll vote against him next time. But that’s life. That’s politics. Let’s hope he comes through. You say I spent too much time in my native Iowa, not enough time in Wisconsin. There’s no such thing as too much time in Iowa. But you’re right. Mea culpa. I plead guilty to doing too little reporting and research in Wisconsin. You can’t go everywhere, but Wisconsin deserved better. But I’ve been spending a lot more time in Wisconsin since the book came out – surprisingly, given that I ignored too much of the state, I’ve had more demands for speaking and more good newspaper articles in Wisconsin than anywhere else. And everywhere I go, I’m told that I accurately described towns and cities that I never visited. I think this is the point – that the Midwest is truly a region and is suffering now as a region. The problems and potential of cities in Ohio or Iowa or Michigan are very much the same as those of cities like Appleton or Green Bay. A note on Chicago as a global city, and whether it deserves the title. It does. If it’s not quite the global metropolis that New York or London is, it ranks right up there with Los Angeles and Shanghai and Toronto and Frankfurt and Singapore and all those other global cities. You point out that it has crime and political corruption (no argument on that point just now) and a lot of other bad things, like congestion and high taxes and problematic schools and stress. OK, that’s life in the global city. You say that other places have the same drawbacks but I wouldn’t rank them as “global cities.” Wrong, A city’s “globality” doesn’t have much to do with these attributes. Many great cities have corruption (the last governor to get in trouble was the New York one, Spitzer): some have autocratic governments (Singapore) and some have out-and-out dictatorships (Shanghai). All great cities are congested, because so many people want to be there. All great cities have high costs, for the same reason. All great cities are high-stress places, because they’re so busy. Many have lousy schools, to their shame: so many bright and creative young people want to come there to live and work that they don’t have to create their own home-grown pool of talent. Many, for all these reasons, are not particularly pleasant places to live (although they’re all exciting places to be.) No, global cities are the places where the world’s business gets done – the home of headquarters, global law and accounting firms, trading marts and global universities and huge influxes of immigrants. They are big economic centers and, because they draw in so much of the world’s money, they are often cultural and recreational centers, too. You’re right that there certainly are easier places to live. But they aren’t global cities. But not everybody wants to be there. As you note, Wisconsin and the New North region have a lot of great people, including entrepreneurs, who have chosen to live there and are creating not only good lives but an economy. A lot of these people came to the New North summit, and I could see that they are thriving in the region. More power to them – literally. More power, and more money, and more investment. You, like Chicago and everywhere else, need all you can get. So are you getting enough? Is Wisconsin thriving? How’s Janesville? Or Racine? Or the towns in the center of the west of the state? Or Milwaukee, where no less than 70 percent of the town’s African-American males are unemployed? Or the towns in the far north, or the small farm towns too far from cities to be bedroom suburbs? Are all your best and brightest young people staying in their home towns, because these towns offer them the best chance to use their brains and talents? Or are they grabbing their diplomas and heading for the cities? Be sure, I’m not pointing any fingers at Wisconsin here. As Midwestern states go, Wisconsin is doing better than most. But my point is that the entire Midwest is lagging the rest of the nation, is falling behind in the global race, and Wisconsin is part of the Midwest and can’t escape this malaise. Everyone who lives in the New North is there because, as you say, they chose to be there. Anybody who spends any time in the Fox Valley can see what those reasons are. But will their kids make the same choice? My goal is to get the Midwest and Midwesterners working together again, to built a truly regional economy, to leverage their many strengths, to re-create lives of economic decency for everyone here. Again, thanks for commenting on my thoughts, and I hope you’ll fire away at these comments on your comments.
12/15/08 @ 10:51
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