technology, monopoly, and labor: the urban/rural divide phillip longman€¦ · 08-01-2018 ·...
TRANSCRIPT
![Page 1: Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman€¦ · 08-01-2018 · Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman! Address!to!the!Summit!on!Technology!and!Jobs!](https://reader033.vdocuments.us/reader033/viewer/2022050400/5f7e57901d149d70be2c678c/html5/thumbnails/1.jpg)
Technology, Monopoly, and Labor: The Urban/Rural Divide
Phillip Longman
Address to the Summit on Technology and Jobs December 12, 2017 Washington Monthly Open Markets InsCtute
Johns Hopkins [email protected]
![Page 2: Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman€¦ · 08-01-2018 · Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman! Address!to!the!Summit!on!Technology!and!Jobs!](https://reader033.vdocuments.us/reader033/viewer/2022050400/5f7e57901d149d70be2c678c/html5/thumbnails/2.jpg)
Mega Trend of American Economic History: 1865-‐1980
Inequality of wealth and income among regions declines
![Page 3: Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman€¦ · 08-01-2018 · Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman! Address!to!the!Summit!on!Technology!and!Jobs!](https://reader033.vdocuments.us/reader033/viewer/2022050400/5f7e57901d149d70be2c678c/html5/thumbnails/3.jpg)
Emergence of a Single American Standard of Living: Regional Per Capita Income as a Percentage of Na<onal Average 1929-‐1982
![Page 4: Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman€¦ · 08-01-2018 · Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman! Address!to!the!Summit!on!Technology!and!Jobs!](https://reader033.vdocuments.us/reader033/viewer/2022050400/5f7e57901d149d70be2c678c/html5/thumbnails/4.jpg)
Increasing regional equality was a major factor driving down the gap between rich and poor.
• According to the Harvard economists Peter Ganong and Daniel Shoag, approximately 30 percent of the increase in hourly-‐wage equality that occurred in the United States between 1940 and 1980 was the result of the convergence in wage income among the different states.
![Page 5: Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman€¦ · 08-01-2018 · Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman! Address!to!the!Summit!on!Technology!and!Jobs!](https://reader033.vdocuments.us/reader033/viewer/2022050400/5f7e57901d149d70be2c678c/html5/thumbnails/5.jpg)
Why Futurist in the 70s thought regional inequality would decline sLll more radically…
• Rise of the service economy diminishes importance of geography.
• Digital technology will bring the ”death of distance”
![Page 6: Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman€¦ · 08-01-2018 · Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman! Address!to!the!Summit!on!Technology!and!Jobs!](https://reader033.vdocuments.us/reader033/viewer/2022050400/5f7e57901d149d70be2c678c/html5/thumbnails/6.jpg)
But then comes the big inflecLon point…
![Page 7: Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman€¦ · 08-01-2018 · Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman! Address!to!the!Summit!on!Technology!and!Jobs!](https://reader033.vdocuments.us/reader033/viewer/2022050400/5f7e57901d149d70be2c678c/html5/thumbnails/7.jpg)
Rich Ci<es Get richer
Rise in the Per Capita Income of NY, SF, and DC compared to American average: 1980-‐2014.
![Page 8: Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman€¦ · 08-01-2018 · Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman! Address!to!the!Summit!on!Technology!and!Jobs!](https://reader033.vdocuments.us/reader033/viewer/2022050400/5f7e57901d149d70be2c678c/html5/thumbnails/8.jpg)
Per Capita Personal Income of Selected Regions Compared to the New York Metropolitan Area
![Page 9: Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman€¦ · 08-01-2018 · Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman! Address!to!the!Summit!on!Technology!and!Jobs!](https://reader033.vdocuments.us/reader033/viewer/2022050400/5f7e57901d149d70be2c678c/html5/thumbnails/9.jpg)
Nearly two-‐thirds of U.S. metro areas saw more firms close than open in 2014.
![Page 10: Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman€¦ · 08-01-2018 · Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman! Address!to!the!Summit!on!Technology!and!Jobs!](https://reader033.vdocuments.us/reader033/viewer/2022050400/5f7e57901d149d70be2c678c/html5/thumbnails/10.jpg)
Number of metro areas with higher firm death rates than birth rates
![Page 11: Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman€¦ · 08-01-2018 · Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman! Address!to!the!Summit!on!Technology!and!Jobs!](https://reader033.vdocuments.us/reader033/viewer/2022050400/5f7e57901d149d70be2c678c/html5/thumbnails/11.jpg)
![Page 12: Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman€¦ · 08-01-2018 · Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman! Address!to!the!Summit!on!Technology!and!Jobs!](https://reader033.vdocuments.us/reader033/viewer/2022050400/5f7e57901d149d70be2c678c/html5/thumbnails/12.jpg)
Some explanaLons offered by others
Decline of Rust Belt? But sunbelt is also falling behind NY, SF, DC
Rise of CreaRve Class?
But why would creaRves need cluster more today than in the past? Rising rewards to innovaRon?
But with the “death of distance,” can’t innovators live anywhere?
![Page 13: Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman€¦ · 08-01-2018 · Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman! Address!to!the!Summit!on!Technology!and!Jobs!](https://reader033.vdocuments.us/reader033/viewer/2022050400/5f7e57901d149d70be2c678c/html5/thumbnails/13.jpg)
AlternaLve explanaLon for rising regional inequality aWer 1980: Retreat from America’s anL-‐monopoly policy tradiLon.
![Page 14: Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman€¦ · 08-01-2018 · Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman! Address!to!the!Summit!on!Technology!and!Jobs!](https://reader033.vdocuments.us/reader033/viewer/2022050400/5f7e57901d149d70be2c678c/html5/thumbnails/14.jpg)
The link between monopoly and regional inequality was once well understood… “the swallowing up of … small-‐business enRRes transfers control from small communiRes to a few ciRes where large companies control local desRnies. Local people lose their power to control their own local economic affairs. Local maWers are within remote control.”
RepresentaRve Emanuel Celler , 1950, explaining the need for tougher anR-‐monopoly law.
![Page 15: Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman€¦ · 08-01-2018 · Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman! Address!to!the!Summit!on!Technology!and!Jobs!](https://reader033.vdocuments.us/reader033/viewer/2022050400/5f7e57901d149d70be2c678c/html5/thumbnails/15.jpg)
“We are talking about the kind of America we want.… Do we want an America where the economic marketplace is filled with a few Frankensteins and giants? Or do we want an America where there are thousands upon thousands of small entrepreneurs, independent businessmen, and landholders who can stand on their own feet and talk back to their government or to anyone else? Humbert Humphrey, arguing for tougher anR-‐trust laws, Senate floor speech, 1952.
Link between anR-‐monopoly and liberty.
![Page 16: Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman€¦ · 08-01-2018 · Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman! Address!to!the!Summit!on!Technology!and!Jobs!](https://reader033.vdocuments.us/reader033/viewer/2022050400/5f7e57901d149d70be2c678c/html5/thumbnails/16.jpg)
Postal Clause, U.S. ConsLtuLon, 1789 “postal net neutrality”
![Page 17: Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman€¦ · 08-01-2018 · Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman! Address!to!the!Summit!on!Technology!and!Jobs!](https://reader033.vdocuments.us/reader033/viewer/2022050400/5f7e57901d149d70be2c678c/html5/thumbnails/17.jpg)
Interstate Commerce Act, 1887 “railroad net neutrality”
![Page 18: Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman€¦ · 08-01-2018 · Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman! Address!to!the!Summit!on!Technology!and!Jobs!](https://reader033.vdocuments.us/reader033/viewer/2022050400/5f7e57901d149d70be2c678c/html5/thumbnails/18.jpg)
Sherman AnL-‐trust Act 1890 “Industrial liberty” for small producers.
![Page 19: Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman€¦ · 08-01-2018 · Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman! Address!to!the!Summit!on!Technology!and!Jobs!](https://reader033.vdocuments.us/reader033/viewer/2022050400/5f7e57901d149d70be2c678c/html5/thumbnails/19.jpg)
Robinson Patman Act, 1936 No loss leading/limits on chain stores
![Page 20: Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman€¦ · 08-01-2018 · Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman! Address!to!the!Summit!on!Technology!and!Jobs!](https://reader033.vdocuments.us/reader033/viewer/2022050400/5f7e57901d149d70be2c678c/html5/thumbnails/20.jpg)
Community Banking Laws LimiLng money center power/financializaLon
![Page 21: Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman€¦ · 08-01-2018 · Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman! Address!to!the!Summit!on!Technology!and!Jobs!](https://reader033.vdocuments.us/reader033/viewer/2022050400/5f7e57901d149d70be2c678c/html5/thumbnails/21.jpg)
New Deal-‐Era Patent Monopoly Policy
![Page 22: Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman€¦ · 08-01-2018 · Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman! Address!to!the!Summit!on!Technology!and!Jobs!](https://reader033.vdocuments.us/reader033/viewer/2022050400/5f7e57901d149d70be2c678c/html5/thumbnails/22.jpg)
AnL-‐monopoly policy enables Silicon Valley
![Page 23: Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman€¦ · 08-01-2018 · Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman! Address!to!the!Summit!on!Technology!and!Jobs!](https://reader033.vdocuments.us/reader033/viewer/2022050400/5f7e57901d149d70be2c678c/html5/thumbnails/23.jpg)
Brown Shoe Co. v. United States, 1962. AnL-‐trust enforcement zenith.
![Page 24: Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman€¦ · 08-01-2018 · Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman! Address!to!the!Summit!on!Technology!and!Jobs!](https://reader033.vdocuments.us/reader033/viewer/2022050400/5f7e57901d149d70be2c678c/html5/thumbnails/24.jpg)
Retreat from anL-‐monopoly policies beginning the the 1970s hollows out the middle: • “DeregulaRon” of airlines/railroads/trucks. • “DeregulaRon” of banking/Wall Street. • Repeal of “fair trade” legislaRon. • Patent monopoly expansion.
![Page 25: Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman€¦ · 08-01-2018 · Technology, Monopoly, and Labor: The Urban/Rural Divide Phillip Longman! Address!to!the!Summit!on!Technology!and!Jobs!](https://reader033.vdocuments.us/reader033/viewer/2022050400/5f7e57901d149d70be2c678c/html5/thumbnails/25.jpg)
Causes and consequences of regional inequality
• The emergence of “colonial” economies throughout the U.S. • Hollowing out of civic capital/trust as absentee owners replace local owners. • Rising monopsony power suppress wage growth (even for programers!). • DramaRc declines in rates of entrepreneurship. • Loss of innovaRon. • Rise of the populist grievance poliRcs.