LIKE THE DESERTS WISH FOR RAIN, AMERICA'S LOCAL ECONOMIES WISH FOR MANUFACTURING: LOCAL ECONOMIES MUST REINVENT THEMSELVES

The purpose of this paper is to discuss modern globalization effects on U.S. local communities. Many analysts contend that over the past several decades the economic and social impacts in small town America have been both... [ view full abstract ]

The purpose of this paper is to discuss modern globalization effects on U.S. local communities. Many analysts contend that over the past several decades the economic and social impacts in small town America have been both shocking and destructive. Others contend that the promise of globalization for middle and small town America has created an avenue for capitalists and money changers to ravage the most sacred of America’s exceptionalism; that of the promise to grow middleclass opportunities with shared prosperity, cooperation and fairness. And although globalization and free-enterprise are apparently a very successful economic revolution, it seems to have contributed to the denigration of rural and small town America’s labor dynamism. Nevertheless, a resurrection and gainful opportunities for local economies is feasible. Specifically, this paper focuses on one local community, the city of Rocky Mount in the state of North Carolina, USA; its circumstances and how the city’s recovery both economically and socially hinges on reinvention.

Modern multinational manufacturing serves only the self-interest of the owners and is certainly the mantra of the day; that the public interest; local people (competitive/cooperative entrepreneurs and small businesses); who presumably operate in the public interest or the community’s interest appear to not account for very much; at least in isolation. As such, many local economies seem to be suffering from past miscalculations and continue to reason that large multinationals and globalization will come to the rescue. The challenge is they rarely do and are not likely to do so in the near term; if ever. It is because free enterprise and private ownership of production (in the context of tremendous market power) permits the movement of operations to locations with the lowest cost of production. In the simplest terms, it means that lower labor costs and associated technologies assist in swift relocations. Consequently, small localities are left with a disparate and dwindling tax base, low wages and basically economies that have created jobs that are less than authentic or dependable; all of which has brought forth massive public debt as well as private debt; including student debt, credit card debt and healthcare debt.