Did you know that 1 in 5 Americans live in small towns, on farms, across this great nation? Which is way down from when I was a kid- and way smaller still from when my grandfather reached these shores.
And, while this may be news to those of us who live on the two coasts, it’s been evident to rural America for decades. Even as the USA population has increased (75 million in the last 27 years), it’s been true for the cities- not for rural America, which lost 3 million in population. (Someone complained they did not know what MSA meant- Metropolitan Statistical Area.)
Prior to the Great Recession, small town America was doing well. The economic recovery of 1992 to 1996 for small town America involved 1/3 of all new business startups (135K). After the Great Recession, small town America lost 17.5K businesses (while larger metro areas grew by 99K entities). And, these changes are happening despite the fact that geographic mobility is at an all time low.
To be honest, this is one of the few facts that TheDonald recognizes. After all, this is the prime location from which his base emanates.
Manufacturing jobs in America haven been on the decline. The key is going to entice small manufacturers (those with 100 or fewer employees), which comprise most of our domestic manufacturing (94%), to remain in or relocate to small town America.
But, it’s really hard for those firms to find qualified workers, if they plan to be in rural domains. Skilled positions remain open for months- and unskilled positions can still require some 2 months to fill the gap.
Which is why some states are offering special incentives for smaller manufacturers. Colorado will waive income taxes for four years for those who move to rural Colorado. Kansas created 77 rural opportunity zones to help with student loan repayment and for state income tax waivers (for 5 years).
We’ll look at some other shenanigans tomorrow.
I would love to live in a small town someday. But not with Donald mini-mes.
You and I both have special problems living in small towns. They generally don’t feel compelled to play by “equal rights” rules, Jeanine!
Tax benefits and special status will help small businesses survive. It’s important for the economy. Same story everything.
I couldn’t have said it better, Dr. A. I’m thrilled you did!
How I miss our little rural town in upstate New York. I grew up in Charlton which had a handful of town folks and went to a one room school house for my first 3 grades. It was like living on The Little House in the Prairie.
Those places still exist, Martha. They just are not thriving. Part of the deal is going to be the US government (which we all now know is a BIG stretch for it to act) and the states to find a mean to entice folks who grew up in those towns to stay (subsidizing manufacturing sites with property tax credits? with employment credits when they proffer continuing ed?) and to have folks move in to said regions.
I lived in a small town (in India though) most of my life, till I started my undergrad in a big city, actually. Small town life has its charms certainly, and businesses in small towns do need a little extra help to sustain (and then to thrive).
Some of these small towns here in the US that we visited years ago on road trips were just fine at that time, but today not so much when we went back again on more recent road trips.. 🙁 and they were like you said – like ghost towns..
Thanks for bringing an international scope to the discussion, Vidya!