NewGeography.com blogs

Listening to public radio, the host was interviewing a college professor as to why China has brought more innovation and progress in many areas of its growth, leaving other countries behind. In particular they mentioned high speed rail, low energy vehicles, and construction. The entire show was based solely upon how China’s universities educate differently than America, as if somehow a graduate student would suddenly posses the knowledge, experience, and drive to make major changes in transportation, science, design, and construction.

When I hire American college students either as interns or graduates, what they have learned has little practical application as to the tasks that my business needs. Thus, we need to educate them on design (land surveying, civil engineering, planning and architecture), presentation techniques and the latest technology. What students do posses is a strong desire to make a difference in the world. I’m sure it is similar in China.

China has made explosive progress by the process required of American companies who must comply with their restrictions to do business in their country. Let me explain:

About 4 years ago we looked into designing neighborhoods in China. What we discovered is that an American company cannot do business directly in China. Instead of working directly, we would be required to enter into a partnership with an existing consulting firm in China. There is a problem with that requirement. If I would pursue business in China, I’d have to partner with a firm that did not have our talent, methods, or technologies we possessed. To work with an unknown firm would require us to share information that would have been exclusive to our firm, essentially training them in the strengths we took so long to accumulate. I figured that this would be a quick (and cheap) way their government could force American businesses to train their companies in our methods, and in most cases our advancements.

Why would a company with a competitive edge want to provide privileged information to gain business? What is there to prevent that “partnering” business to break off relationships once they drain the knowledge base? Certainly they do not hire us because we have a larger workforce.

American progress has been fostered by questioning why. Why is something being done this way? How can we make it better? This leads to innovation. Innovation was a major reason our country progressed more aggressively compared to countries that teach their students to think in only one way. China could see us as a knowledge base to farm information from our corporations wanting China’s riches.

China seems to present an image of more progress. By forcing partnerships to do business in China we may have taught their corporations our best secrets. “We” being not just the United States, but every other country with their top designers, scientists, and technologies sharing knowledge.

Once they have this knowledge and know-how, why would they need us? That is the foundational problem, and one reason I have not pursued work in China.

The American way is innovation – something which I’ve seen little of in the development of our land and the building of our housing by the largest of American corporations. We should be going back to the drawing boards to accelerate American innovation and technology, and this time, not hand over this competitive edge so easily.

The Eurostar, the high speed rail service that links London with Paris and Brussels remains more than 60 percent below its ridership projections as of 2010, according to recently released ridership information. This is despite a double digit (12 percent increase in ridership between 2009 and 2010.

According to a Parliamentary inquiry, consultants projected that Eurostar ridership would reach nearly 25 million passengers by 2006. As of 2010, ridership still languishes below 10 million, at 9.5 million. Rosy ridership and revenue estimates have often occurred with major infrastructure projects, especially rail projects, as has been documented in research by Flyvbjerg et al.

In 2009, the government of the United Kingdom has assumed £5.2 billion in debts of the builder/operator of the high-speed rail Channel Tunnel link to St. Pancras Station. This is in addition to the £1.7 billion that had been granted by the government to the builder/operator to extend the line.

Could the next zone of opportunity exist in the middle of the country? Census unemployment figures seem to signify this notion, especially in the Great Plains.

State-wise, November 2010 unemployment rates were lowest in North Dakota at 3.6%; South Dakota at 4.6%; Nebraska at 4.9%; Kansas at 6.5%; and Iowa at 6.8%. Compare these numbers to the ever-growing Sunbelt states where unemployment is at its most dismal with Arizona at 9.6%, California at 12.4%, and Nevada at a depressing 14%.

The top ten cities with the lowest unemployment rates are all found in the Midwest and the Great Plains, with the exception of Burlington, VT and Portsmouth, NH. The strength of the growing, younger manufacturing industry that escaped the huge manufacturing employment declines in the 80s and 90s may be fueling the prosperity in the plains.

Upon closer inspection of the economies of these cities, a few common denominators are revealed. Health care is a prevailing industry recurrent across many of the cities. Unsurprisingly, agribusiness and manufacturing also dominate, along with insurance services, food processing, and, in some cases, higher education.

Metromonitor prepared this interesting piece using data from the Bureau of Labor Statistics allowing one to see unemployement rates throughout the Midwest and the Rust Belt that appear to be on the rebound. The bottom map is of particular interest: One year’s growth has shown a decrease in unemployment throughout much of the Rust Belt, while cities in California and Florida consistently flounder. As far as overall performance, many cities in the Midwest – and much of the Great Plains – remain strong out of the recession and are comparable to the sturdy Texan cities that possess surging economies.

Perhaps these urban centers across the Midwest, and especially the Great Plains, should be viewed as models for effective economic development. Large cities throughout the Great Plains offer integral services not found for miles and serve as regional havens for essential activities such as health care, education, business services, and food processing. Meanwhile, cities with declining industries, exploding real estate prices, and a surplus of workers suffer. Areas such as the Sun Belt, California, Florida, and some Northeastern cities bare the weight of this dilemma. Our focus should rest on the well-grounded economies of the often-ignored flyover states, instead of those on the crumbling coasts.

Remember cigar-smoking union leaders, those portly white guys who sat around the pool at AFL-CIO conventions in Miami Beach?

We called them the “old guard” and blamed them for allowing what looked at the time to be a very foreboding decline in union density, power and influence.

When I started in the Labor Movement in the 1980s, the struggle to replace that generation with smart, progressive and militant leadership was well underway.

Now many national unions and locals around the country are led and staffed by a new breed, schooled in strategic thinking and coalition-building, and committed to organizing members for action and recruiting workers into the ranks.

The result:

The plunge in the number and percentage of union members continues without a blip.

The latest stats show 14.7 million union members in America; that’s 11.9 percent of the “wage and salary” workforce, a drop of almost a half a percent in one year and more than eight percent since 1983, when the rate was already tumbling.

I’m not accusing my friends and colleagues of incompetence, lack of commitment or anything of the kind.  In fact, many have been – and are – involved in heroic struggles to reinvigorate and rebuild the movement.

But the labor relations framework in the U.S. – effectively manipulated by a sophisticated union avoidance industry – makes union growth almost impossible.

For true believers – you know who you are – a fleeting moment of euphoria ended two years ago when labor law reform was buried by a senate filibuster and a white house with other priorities (the president, by the way, made one oblique reference to unions in his speech to congress this week: the UAW’s support for his free trade pact with South Korea).

Another daunting challenge facing the labor movement is the growing gap between the number of public sector union members (7.6 million) and those union members working in the business economy (7.1 million).

How do we convince nonunion working class taxpayers to support government employees being scape-goated for their “budget-busting” pension payouts?

Finally, a couple of interesting numbers on union distribution by states:

Of the big ones, California has the most members (2.4 million), New York has the highest percentage (26 percent).  But two “outlier states” also share the spotlight:

Heavily democratic Hawaii (23.5 percent) is no surprise.

But, ironically, the republican state of Alaska finishes second in union density (24.8 percent).  It’s where big oil pays union wages, enabling our giant state’s ethic of  “up by your bootstraps” individualism.

This first appeared at laborlou.com

The city of Kalamazoo in southwestern Michigan may be a shining pinnacle in an otherwise economically withering state. The secret may lie within the city’s well-educated population and its incentives to support an enlightened oasis. For 25-year-olds and older in Kalamazoo, 84.2% have finished high school or higher; 32.7% have accomplished a bachelor’s degree or higher; and 14.4% can boast a graduate or professional degree.

Compare this to Detroit’s much more bleak statistics: 69.9% of 25-year-olds have graduated high school; 11% have attained a bachelor’s degree; and a petty 4.2% have acquired a graduate or professional degree. The percentage of unemployed in Detroit is 13.8%, while 12.5% are unemployed in Kalamazoo.

These numbers reflect a well-educated workforce that hasn’t had such an apparent impact from the declining industries in the area. It seems that the answer may be in Kalamazoo’s education services. The most common industries for men and women are educational services, where 13% of men and 17% of women are employed. The area also employs 4% of men and 4% of women in professional, scientific, and technical services, which may lend the city with a more developed economy. Universities such as Western Michigan University and Davenport University help diversify Kalamazoo’s employment base opposed to the historically more manufacturing dependent Michigan .

Unsurprisingly, Detroit’s leading industry for males is transportation equipment (includeing auto manufacturing) at 15% of the workforce. The share in educational services is much lower than Kalamazoo with only 4% of males and 10% of females employed in the area. Figures for professional, scientific, and technical services were not listed.

Kalamazoo also has incentive programs for students in the local school systems. The “Kalamazoo Promise” is a program funded by anonymous donors who provide scholarships for students who attend and finish high school in Kalamazoo. Scholarships can total up to 100% of the student’s college tuition. The program started in 2006 and has likely contributed to the area’s 3% growth in student enrollment. In 2008, Detroit began a similar program in hopes of replicating the small economic boom that the Kalamazoo Promise instigated.

If the city can leverage its higher education institutions and its surging base of high school students entering college, it could ultimately become a prime example of a community improving itself through education. Incentives and opportunities provide citizens with a solid and encouraging way out of a weakening economy inthe state while still providing a standard that the rest of Michigan can attempt to replicate.

For more Kalamazoo facts and figures, visit http://www.city-data.com/city/Kalamazoo-Michigan.html.