Perhaps this is a pointer to where America’s recovery will come from. Some of the less fashionable parts of the country may quietly get on with the business of growing. Places like Chattanooga. And like Buffalo, New York, which did not experience a great boom, but may also largely miss out on the bust—while growing jobs in the public sector and health care. And like many other areas that don’t make the headlines.
— Chattanooga vrrrm vrrrm, The Economist blog
Basic economics asserts that capital flows from high-wealth areas to low-wealth areas to take advantage of the increased return on investment these areas offer. The economic miracles of southeast Asia have illustrated this principle on a global scale; as we emerge from the panic of 2008, could America’s beleaguered post-industrial cities illustrate this principle on a national scale?
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