The standard diagnosis of the trouble with supply regions, abandoned regions, and clearance regions as well as stagnated and declining cities is "not enough industry." To be sure. But the standard prescription for the deficiency is "attract industry." What are these industries that can be lured and hooked? Where do they come from and why?
For the most part they are industries that originally developed in cities or city regions but are no longer tethered there by localized markets or by everyday dependence upon multitudes of producers and services close by. Their markets have become far -flung, and they supply so many of their own everyday needs for producers' goods and services internally and have become so practiced at acquiring those they must buy from others, whatever the source, that these enterprises have developed great freedom in choosing where to expand or to relocate. They can move to virtually any place providing other special advantages they seek: for instance, exceptionally cheap labor, close proximity to raw materials they use, release from environmental regulations, or the chance to cash in on tax forgiveness and other subsidies commonly offered to enterprises that will move into depressed areas.
The very freedom of location that enables these industries to leave city regions for distant regions means freedom from local markets and freedom from symbiotic nests of other producers. Therefore, their presence does nothing, or little, to stimulate creation of other, symbiotic enterprises. This outcome becomes starkly obvious whenever these transplants pull up stakes and leave for yet a different location, perhaps one with still cheaper labor or still lower electric rates. What they leave behind when they move are merely economic vacuums, very different from what they left behind originally in the cities or city regions of their origin. And as long as they remain in a region with a transplant economy of this sort, they produce only little and only narrowly for the local economy itself. Their markets are distant. In effect, such transplants shape a kind of industrialized supply region incapable of producing amply and diversely for its own people and producers as well as for others.
LINE AND PATTERN
15 hours ago
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