Ghosts of Abandoned Places
If you wander through the enchanting woods of New England and upstate New York, you’ll encounter stone walls that delineate the borders of farms long forsaken, relics of a time when they thrived. You might stumble upon the remnants of a small house, the entrance to an old mine, or the decaying walls of a once-bustling mill. These vestiges tell the story of people who departed when the opportunities for a sustainable livelihood faded away, leaving behind nothing but stones, bricks, and whispers of the past.
Two Perspectives on Economic Revitalization
Among policymakers, a divergence of thought exists regarding the fate of these forsaken places. One school of thought posits that the decline of areas that have lost their economic foundation is a natural and unavoidable process. Conversely, another perspective argues that society has a responsibility to revitalize the economies of these struggling locales, thus enabling individuals to remain in the communities where they have cultivated families and friendships.
Government’s Role in Place-Based Policy
The Biden administration has aligned itself with the latter viewpoint, advocating for assistance to places, not just individuals. This approach is not only compassionate but can also be efficient in its intent. However, there are palpable concerns regarding the implications of injecting taxpayer funds into areas that have been abandoned by the private sector. My apprehension lies in the potential for place-based economic policy to overreach in its noble aim of fostering renewal.
Historical Context of Place-Based Initiatives
When President Franklin D. Roosevelt enacted the Tennessee Valley Authority Act in 1933, it was a landmark moment in governmental intervention aimed at aiding an entire region. The initiative focused on constructing dams, roads, canals, and hydroelectric power plants, which significantly benefited Tennessee and nearby states. Nevertheless, despite these advancements, the area continues to experience poverty levels that are below the national average, with some studies indicating that the local gains may have come at the expense of economic detriments in other regions.
Shifting Political Support Post-World War II
Following World War II, the political backing for place-based initiatives began to wane. In 1953, President Dwight Eisenhower referred to the T.V.A. as an instance of “creeping socialism,” suggesting that the federal government could have utilized its resources more judiciously by allocating funds directly to impoverished individuals in Appalachia, rather than investing in regional development projects.
The Economic Debate
Many economists have echoed this sentiment, advocating that aiding individuals directly is more effective than attempting to restore the vibrancy of their communities. The perceived failures of urban renewal projects, which often fell short of reversing the decline of many cities, seemed to validate this perspective. In 2007, Harvard economist Edward Glaeser provocatively questioned in an article, “Can Buffalo Ever Come Back?” The accompanying subheadline provided a stark conclusion: “Probably Not — and Government Should Stop Bribing People to Stay There.”