Debunking the Growth Myth, Part 2

Myth Number 2
We have to grow to provide jobs for people in the community

Reality Check: We can't grow our way out of local unemployment problems. Growth makes the problem bigger.

The overly simplistic logic goes like this: Everybody agrees that people need jobs, therefore, anything that creates jobs must be good. If you oppose growth, then "you don't care about people who need jobs." According to University of California, Santa Barbara Professor Harvey Molotch, "A key ideological prop for the growth machine, especially in appealing to the working class, is the assertion that local growth 'makes jobs.' This claim is aggressively promulgated by developers, bankers, and Chamber of Commerce officials. "

The real question is not whether growth creates jobs, but whether it reduces local unemployment. Presumably, if growth reduced unemployment, a fast-growing city would tend to have a lower unemployment rate than a slow-growing one. To test this, Molotch examined two decades of census data on growth rates and unployment. He compared unemployment rates in the 25 fastest growing cities in the U.S. with the 25 slowest growing. He found no statistical correlation between the growth rate and the unemployment rate. Faster-growing cities are undoubtedly creating new jobs, but, it seems they are also attracting new residents who don't find jobs. The faster-growing city ends up being a bigger city, with a similar unemployment rate and a larger number of people unemployed.

Economic booms may provide temporary relief from unemployment woes, but experience clearly indicates that growth is not the long-term solution to unemployment.

Click here for the rest of the argument against Myth Number 2.

Clone Town

Think we're the only one's dealing with the onslaught of big-box retail and the bland, monotonous environments they create? Think again. Across the pond in the UK, London's New Econoomics Foundation (nef) is leading the charge for local economic development.

They are an independent think-and-do tank that inspires and demonstrates real economic well-being by aiming to improve quality of life by promoting innovative solutions that challenge mainstream thinking on economic, environment and social issues. nef works with all sections of society in the UK and internationally - civil society, government, individuals, businesses and academia - to create more understanding and strategies for change. Clone Town is one of their latest campaigns.

Economic systems that favour the large, remote and uniform threaten our local economies and communities, diversity and choice.

Creating the right balance between local and global economies will help to increase individual well-being, reduce inequalities and promote environmental sustainability. nef is pushing to fight ghost town britain and relocalise the economy through the local works campaign and by empowering communities through enterprise and innovation.

The tools for local economic renewal help people create their own futures. Our flagship inner city 100 project shows the power and dynamism of inner city business, and our work on access to finance addresses the problem of people being excluded from mainstream finance.