It once was thought that economically lagging regions and more successful ones would converge over time, and that the government should focus on helping people navigate a changing economy rather than try to save faltering communities, says The New York Times’ Neil Irwin.
But, he says, it's become increasingly apparent that there are big problems when a handful of superstar cities thrive and much of the country struggles:
"It means vast human potential goes untapped and lots of capital — existing cities and towns — goes underutilized. And it can fuel political polarization and damage democracy, as people in declining regions feel less connected to their more prosperous countrymen.”
The debate often is framed as between “people” (policies to help individuals affected by economic change) and “places” (policies aimed at communities that are languishing).
“I don’t think we can ignore the role of place in public policy any longer and just allocate investments to people,” says Ross DeVol, president of Heartland Forward, a think tank based in Bentonville, Ark. “Because that creates a hollowing out in places that affects the entire country negatively."
The Biden administration’s American Jobs Plan incorporates ideas from the bipartisan Endless Frontier Act, a bill reintroduced in Congress last month. Among other things, it aims to provide "opportunities for the regions across the country – most importantly the Midwest – to become a global center of emerging industry.”
The idea is to invest in cutting-edge research with potential for commercial spinoffs, worker training and other steps to create the kinds of virtuous cycles of innovation and jobs that already occur in places like Boston, Irwin says.
And financial help for cities and states was included in the American Rescue Plan enacted in March.
"Many of those directly involved ... are downright giddy with the possibility that they can seize this moment to prepare their cities and towns for the future,” says Irwin.
“I think there was a sigh of collective relief among mayors of cities this size you could hear around the country” when the American Rescue Plan passed with money for local governments, says Leirion Gaylor Baird, mayor of Lincoln, Neb. “Everything about this moment feels like it has the potential to be transformational.”
Steve Williams, the mayor of Huntington, W.Va., says, “Covid was a once-in-a-lifetime pandemic, but it’s also a once-in-a-lifetime opportunity as people realize they can work remotely if they have access to broadband and clean water and a safe and solid community.”