Sustainable Economies

There are many things I never expected to write in one sentence.  The following is one of them: Pittsburgh, Pennsylvania may be an example of sustainable economies.  In a fascinating article from January 8, 2009 New York Times, Pittsburgh appears to have brought itself back from economic ruin when the steel mills closed and everyone ran from the city in the 1980s.

But the renewal of Pittsburgh's economy was not because of some instant "stimulus" but rather because of diligent efforts over years and years from dozens of sources to diversify the economy and to ensure that the region does not fall prey to boom and bust urges.

The down side to Pittsburgh's renewal has been a deindustrialization, which, I think, does a disservice to any economy.  Folks, we simply have to acknowledge that we need to make things.  It's one of the only ways for us to provide middle class jobs for skilled labor.

But much of the renewal of Pittsburgh came from retraining of steel workers.  And I think one of the most important elements of any "stimulus" plan has got to be a commitment to ensure we are providing employment, not just jobs, for people.  Hiring folks for construction jobs which may terminate when the bridge is built or for other infrastructure jobs is great as long as we are providing skills which can be translated into long term employment.  If we fail to do that, we are back at looming and chronic unemployment, which is, of course, not a good thing.

One  huge hurdle for any stimulus to work is the fact this economic melt down has crossed all sectors.  Journalists, mechanics from Boeing, aluminum workers, bankers, medical professionals, retailers, construction workers, real estate salespeople...and while education seems to so-far be insulated, we know that is not long.  Even the government, state, local, and federal agencies are at least in hiring freezes.  It is going to be very difficult to find areas where cash infusions are going to initiate long term employment.

In the meantime, maybe we need to really look at communities like Pittsburgh, long ago declared dead, rising from the ashes, and seemingly sustainable.