The value of local control and local capital far exceed the pathetic “savings” reaped from shoddy commoditized goods. What do we make of an economy in which a handful of bubblicious urban areas are magnets for jobs and capital while rural communities have been hollowed out? The short answer is that this progression of urbanization has been one of the core dynamics of civilization for thousands of years: opportunities are greater in cities, and so people move from rural areas with few opportunities to cities with greater opportunities. But that’s not the only dynamic hollowing out America’s rural communities: globalization plays a key role, too. Rural economies can rarely muster economies of scale that enable globally
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Proponents of globalization overlook the intrinsic value of local control and local capital. Once control of the local economy has been ceded to global corporations, the community has lost control of its destiny: the global corporation has only one goal and reason to exist: to increase capital and maximize profits by any means available.
Once the local production can be undercut by production elsewhere in the world, the corporation will shutter the local facility and move on.
Globalization has offered up the shoddy baubles of cheap goods at Walmart and Amazon at the cost of hollowing out local economies everywhere. Those urban areas that specialize in globalized distribution, software, design and data attract mountains of global capital that then distort the cost structure to the point that only the already-wealthy can afford to live there.
You won’t find credit-housing bubbles like this in rural towns, except those favored by the urban wealthy (Telluride, Jackson Hole, etc.): consider the Case-Shiller housing indices of Dallas and Seattle:
Case Shiller Dallas, 2000 - 2018
|The value of local control and local capital far exceed the pathetic “savings” reaped from shoddy commoditized goods. At some point we might recognize this and act on it.||
Case Shiller Seattle, 1990 - 2018