tag:blogger.com,1999:blog-30130444.post1422430302202882660..comments2024-02-16T09:00:32.845-06:00Comments on FromDC2Iowa: How To (And Not To) Grow Iowa's EconomyUnknownnoreply@blogger.comBlogger4125tag:blogger.com,1999:blog-30130444.post-14059494988189230432008-08-31T23:02:00.000-05:002008-08-31T23:02:00.000-05:00This comment has been removed by a blog administrator.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-30130444.post-15686160596965687462008-03-05T07:29:00.000-06:002008-03-05T07:29:00.000-06:00Like a teenager trying to "find themselves," (or o...Like a teenager trying to "find themselves," (or others would say create themselves), articulating an economic development vision for any community is a search for authenticity.<BR/><BR/>The problem I see with a lot of states is that similar to people who aren't sure what to do with their lives, they look for a "formula" they can follow that will "bring in the money" rather than digging deeper before asking "who am I and what do I really love doing that I'm better at than most?"<BR/><BR/>Paul Graham for instance writes a great piece on how to be [a] Silicon Valley:<BR/><BR/>http://www.paulgraham.com/siliconvalley.html<BR/><BR/>The premise is that you need nerds and rich people if you want to recreate an innovation hub. But specifically, you need people who grew up with technology and startup investors with deep pockets who aren't afraid to take calculated risks and have experience under their belt.<BR/><BR/>To recreate any kind of entrepreneurial hub that can spawn new industries, and bring money in from out-of-state (which is what you want with any economic development initiative), you need more than just "the creative class." That means you need more than a lot of arts & progressive culture, you also need the "startup investor class," a point that gets less attention it seems.<BR/><BR/>So what attracts startup investors? Friendly investors who have a lot more money than they do.<BR/><BR/>What attracts nerds? More friendly nerds who are a lot smarter than they are.<BR/><BR/>But again, suggesting that Iowa try to recreate Silicon Valley is like telling a kid who has the potential to be they next great American author that they should be an investment banker "simply because the money [could be] good." The irony is that if they followed their heart, they could probably make more money in the long run, be a lot happier in the process, and create a lot of opportunities for others along the way. Or at the least they'd be happier.<BR/><BR/>On that point, with the history of the UI Writers Workshop and its national reputation, I always thought that Iowa City had the potential to turn itself into a cultural hub for writers as well as a film community. The writers are already there but after they graduate they usually leave for LA or NYC. But it's too expensive to live and make films in those two areas so they're all looking for new places to go like Vancouver or New Zealand.<BR/><BR/>Yet as Graham points out, the way this happens is [in this case] importing communities (not just individuals) of film investors (some of whom are trust fund heirs that love this stuff) and filmmakers. And make Iowa the most economically attractive place in the US to be a media entrepreneur or media artist -- then promote it. From what I understand, Hawaii is a great case study on how to use refundable film tax credits to attract this kind of business.<BR/><BR/>Already though the green economy is the "next big thing," and like the blonde in the film "A Beautiful Mind" about the economist John Nash, everyone now wants to date her. Iowa I doubt will be the leader in this boom since internationally it's so competitive, but it'll probably be on the forefront in renewable energy (it already is actually) and other types of clean technology. Which is probably closer to its agricultural heritage ethos as well. And the way you attract more companies to come in is, sure, through just selling them on the economics of it for the most part.<BR/><BR/>So in the meantime, John Barleykorn is probably right and sounds very practical. It's like the parent telling their child, "you can do whatever you want, just find a way to pay for it." So they do a job that isn't perfect, which sometimes equates to working at one of those financial services firms, but it pays the bills until they can figure out how to take the next step.<BR/><BR/>Yet I still hope that Iowa wakes up and realizes it could be another great American author.Alex Lavidgehttps://www.blogger.com/profile/03499217253836637932noreply@blogger.comtag:blogger.com,1999:blog-30130444.post-36465354470670249982008-03-05T07:05:00.000-06:002008-03-05T07:05:00.000-06:00This comment has been removed by the author.Alex Lavidgehttps://www.blogger.com/profile/03499217253836637932noreply@blogger.comtag:blogger.com,1999:blog-30130444.post-20482813401149817712008-01-28T09:32:00.000-06:002008-01-28T09:32:00.000-06:00Its a fallacy to think that more union type shops ...Its a fallacy to think that more union type shops would be a form of economic development. It isn't labor bashing that has numbers down, it is simple economics. Union Labor for manufacturing costs more than Labor in Mexico and China in particular, so Capital (K) follows the cheaper Labor (L). We can't compete with those countries consistently for manufacturing with that much of a cost of production issue. You are right about some of the things that young professionals look for. There is no denying some projects using TIF do not turn out well. However many of them do, and incentives are part of the game, not just in this state but nationally & internationally. Why would we want to handicap ourselves against other regions and countries? Aren't we having a hard enough time now?<BR/><BR/>"Fair Share" would not help Iowa's problems. It would help drive up the cost of labor to state & local government and taxpayers for the most part. Iowa needs to move away from an identity as an ag state and support the service economy. That is the driving force. We need to invest more money in the areas that generate activity like Des Moines, and Iowa City-CR. The road use tax formula would help by bringing more infrastructure dollars to the areas that need them. We have to realize that our future is not with ag as the state leader. Its the Wells Fargos, Principals & other insurance and financial firms that are.Anonymousnoreply@blogger.com