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• W3124786415 abstract "The usual suspects in the tragic demise of many of America's core cities are well known. For decades, scholars, politicians, and pundits have condemned the racism that led whites to flee diverse urban populations after World War II, sneered at Americans' vulgar affection for cars and expansive lawns, criticized policies that encouraged us to indulge these tastes, and blamed capitalist greed and unwholesome technological change for the deindustrialization that has wrecked urban labor markets. There is, of course, some explanatory power in these familiar stories. But they leave much unexplained, and in some cases merely describe symptoms of urban dysfunction rather than identify root causes of decline. For example, race-bias-based theories seemed quite powerful during the well-documented white flight of the 1950s through the 1970s, but less so as middle- and working-class blacks exited many core cities in recent years. Preference-based theories have a tough time explaining the enduring popularity of high-density enclaves such as Manhattan, or why cities like San Francisco and Boston depopulated and decayed for about three decades after WWII--but then revived, while others simply continued to slide downhill. If our theories need to be discarded at various times or in different places, perhaps we need new ones. In this article, I argue that a more useful and general theory about the fate of American cities in the last half of the 20th century must begin with a discussion of the treatment of capital and the security of property rights within their borders. In particular, I will focus on the powerful influence of labor institutions in reducing the returns to capital in many American cities, thus contributing to their transformation from engines of prosperity into areas afflicted by economic stagnation, chronic poverty, and all the social problems that metastasize in such circumstances. We tend to think of cities as dense concentrations of people living within a given land area, but it would be more fruitful to think of them as dense concentrations of capital that attract people to a certain locale. Physical capital some of it in the form of natural endowments such as a deep-water harbor, much of it the product of human investment in dwellings, factories, offices, and infrastructure--is, of course, a profoundly valuable partner in both our work and play. The greater the quantity and quality of such capital (all else the same), the higher will be our productivity and wages and the more stimulating, satisfying, and comfortable will be our leisure hours. Such capital will, however, always be a tempting target for interest groups seeking to redistribute some of its returns from its owners to themselves. Since physical capital is immobile, it can be taken hostage by opportunistic actors and its value appropriated in ways that will soon be described. And since it is durable, the ill effects of such actions will generally be disguised for years or decades. Accordingly, to develop an understanding of the nature and consequences of such behavior for the vast and varied concentrations of capital that we call cities we must take the long view but should not overlook the individuals and actions that have shaped real urban environments. What follows, then, combines standard economic and quantitative analysis with case evidence from what was America's first great high-tech industrial center and what is now its most destitute, violent, and politically dysfunctional major city: Detroit. Its rise and fall can tell us a great deal about the nature of industrial cities and about the way that labor institutions can affect their economies. The next section describes Detroit's golden age and the sources of its success. Succeeding sections discuss union behavior in general terms, illustrate this behavior in the context of Detroit's auto industry and the cartelization of its labor force, and enumerate the consequences of this behavior; a concluding section contains both pessimistic and optimistic speculations about the future and some policy recommendations. …" @default.
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• W3124786415 date "2010-01-01" @default.
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• W3124786415 title "Unions and the Decline of U.S. Cities" @default.
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