[FoRK] Transportation as a location factor, Was: "The World Is Not Flat"
Ken Ganshirt @ Yahoo
ken_ganshirt at yahoo.ca
Tue Jan 19 14:28:28 PST 2010
What's the sudden fascination with distances and transportation as an offshoot of Jeff's post??? (Comments below...)
--- On Tue, 1/19/10, David Kammeyer <kammeyer at rocketmail.com> wrote:
> This is an interesting way to look at
> things. The systems are definitely statically
> unstable, and maybe oscliatory over long periods of
> time. For example, the auto manufacturing supply chain
> grew up in Michigan, Indiana, and Ohio. When railroads
> grew up, the southern states realized that they could
> attract auto manufacturers with right to work laws and
> financial incentives. Now that auto manufacturing has
> largely left Michigan, Michigan is falling all over itself
> to offer incentives for companies to relocate there.
> Maybe the incentives have to get higher every round though.
> All of this has happened largely due to cheaper
> transportation. ...
Well, no. Not really. It's generally coming out of tax dollars or artificially reduced wages and other individual and/or collective benefits.
It has little, if anything to do with transportation costs; only its availability, e.g. in your example, transportation has to be available or there's no deal to be made. But it doesn't much matter what it costs. It's cost can and will be offset, if necessary, by the other giveaways^h^h^h^h^h^h^h^h^h incentives such as reduced or forgiven taxes, licenses and other fees, free infrastructure, regulations that restrict labour's power to negotiate wages and benefits or absolutely reduce the wages and benefits, and regulations that reduce or remove penalties for transgressions against the commons.
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