Robert Whitcomb: New Main Streets; Lifespan’s Threat; & University Bloat

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Robert Whitcomb: New Main Streets; Lifespan’s Threat; & University Bloat

Robert Whitcomb
Louis Hyman, an economic historian and the director of the Institute for Workplace Studies at  Cornell University’s School of Industrial and Labor Relations, has a useful piece in the April 9 New York Times headlined “The Myth of Main Street: Don’t Listen to President Trump. Going back to the good old days will cost us.’’ (The article is accompanied by charming (if, er, manipulated) pictures of the old mill town of Dover, N.H.).

 

Mr. Hyman’s basic argument is that it’s far too late to try to reconstitute the small, inefficient stores with high prices that used to characterize small-town retailing. Many of these establishments thrived back when there were “fair trade laws’’ {set by state legislators to keep a floor under the prices of goods} and  before the acceleration of globalization, when so many U.S. companies, including manufacturers, discovered foreign suppliers.

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The Main Street-style stores also prospered before the invasion of huge U.S.  big-box chain stores with lower prices (in part because of cheap foreign suppliers) and a much wider variety of stuff for sale and usually built at the periphery of communities where there was lots of parking space. Now many of those chains are suffering as Amazon and other Internet operations steal a lot of their business.

 

Professor Hyman says that small towns have plenty to be hopeful about.

 

 “It’s true that the digital economy, centered in a few high-tech cities, has left Main Street America behind. But it does not need to be this way. Today, for the first time, thanks to the Internet, small-town America can pull back money from Wall Street (and big cities more generally). Through global freelancing platforms like Upwork, for example, rural and small-town Americans can find jobs anywhere in the world, using abilities and talents they already have. …Through an e-commerce website like Etsy, an Appalachian woodworker can create custom pieces and sell them anywhere in the world.

Main Street, East Greenwich
‘’Americans, regardless of education or geographical location, have marketable skills in the global economy: They speak English and understand the nuances of communicating with Americans — something that cannot be easily shipped overseas. The United States remains the largest consumer market in the world, and Americans can (and some already do) sell these services abroad.

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 But, “…. Right now we are too fixated on ‘upskilling’ coal miners into data miners. We should instead be showing people how to get work via digital platforms with their existing skills.

 

‘’The reality of global economics means that Main Street is a place of nostalgia, but again, that has long been the case. What’s novel is that today, the underlying values of Main Street — living and working with autonomy in your own small community — can be attained, as long as you are willing to find that work online.’’

 

In New England, more than in most of the United States there are many attractive (even “quaint’’) and socially and environmentally stable towns and small cities.  Thus there are powerful social and aesthetic reasons to try to stay in them. The Internet offers many ways to make that economically plausible.

 

Meanwhile, spiffed up (faux?) versions of Main Street can be found in affluent parts of big and mid-size cities and in college towns. (A good example in Providence is Wayland Square, close to Brown University and high-end retirement communities.) There, the mostly well-heeled residents can afford the high prices of local, nonfranchised stores and restaurants. But the idea of restoring the 1920s idea of Main Street for everybody is delusional.

 

I remember the tail end of the model in the ‘50s, before the Interstate Highway System. The little town I lived had a cute downtown, with post office, grocery store with sawdust on the floor (before OSHA!), a clothing store  and liquor store (often the busiest place in town) but a remarkably narrow range of things to buy.

 

You’d very often run into people you knew in this village center, but that wasn’t always such a great thing. Most of these small towns were closer to Peyton Place than the precious small towns (e.g., Stockbridge, Mass.) evoked by Norman Rockwell, who had plenty of demons himself. But there were three old churches at our village center, and in the Eisenhower administration they were often filled, with ambiguous effects on local behavior.

 

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Lifespan
Lifespan is making another run at taking over Care New England: If such a merger is approved, there would be at least two almost inevitable results.  CNE senior executives would get big golden parachutes and the post-merger Lifespan would use its near-monopoly pricing power to jack up prices, as has happened with other hospital-system mergers around America.

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New York State, like Rhode Island and some other states,  has been getting into the “free’’ (or partly free) college tuition business. I wonder how effective such deals will be in educating, and retaining in-state,  future workers if K-12 isn’t adequate. I also wonder whether the idea, which seems associated with these “free college’’ plans, that everyone should become members of the “professional’’ class is as silly as it sounds. But that’s what politicians often seem to be implying when they back such programs.

 

Consider a recent Bryant University survey that shows that 60 percent of Rhode Island voters back “free’’ college tuition for two years at Rhode Island public colleges and more than half  support various schemes to phase out local car taxes. The end of the car tax could deprive the localities of so much revenue that they’ll demand more state financial aid, which then might require raising state income and/or sales taxes to address a state budget deficit.

 

Ah, the joys of governing! Citizens always want more services and lower taxes.

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There’s  a move underway to require licenses for pet groomers in Rhode Island.  That would be yet another addition to the swamp of unneeded regulations in which entrepreneurialism can drown. Individuals can cut their pets’ hair for free and without the state telling them how to do it.

 

If owners want to hire someone to do it for them, they can investigate the background of the groomers and/or watch them at work. Then they can exercise their own common sense (remember that?) in deciding whether to hire them. We have allowed far too much government micro-management of too many activities. We need fewer regulations and statutes and better enforcement of the remaining ones.

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I predicted last year on my friend Bruce Newbury’s radio show on WADK that Rhode Island Gov. Gina Raimondo’s popularity would rise with the sense that the state’s economy was improving.  Rhode Islanders, famous for their pessimism and suspiciousness, now generally believe that that the state is on the upswing. The jobless rate is now below the national average and a building boom is underway in Providence. Much of the improvement is cyclical and has little to do with who the governor is. But some of it is due to the sense that Ms. Raimondo generally knows what she is doing when it comes to pumping up business.

 

But we’re past the time in a national economic cycle when the economy usually starts heading into another recession. In the last half-century, Rhode Island has more often than not been among the first states to go into recession and among the last to leave. Have there been enough structural changes to make things different this time?

 

Given the small bench of Democratic governors and senators, the improving Ocean State economy may mean that Ms. Raimondo has a chance of going on the party’s presidential ticket in 2020 – assuming, of course,  that she can win re-election by a big margin next year.

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What is President Trump’s Syria policy? Given his erratic and inexperienced administration, and near-constant contradictions, it’s impossible to know. It’s not even exactly clear why he ordered the missile attack on the Syrian air base (which I backed) from which dictator Bashar Assad’s air force flew off to murder some more civilians with poison gas, probably with the Kremlin’s assistance. 

The president seemed genuinely upset by the Assad-Putin alliance’s latest outrage. But the runway at the air field wasn’t bombed and so Assad’s pilots soon flew off again after the U.S. attack to  murder some more civilians, albeit not with poison gas that time. Why wasn’t the runway bombed?

So dishonest and sometimes crazy  have  been Mr. Trump and many of his associates about so many things that conspiracy theories are rife. One is that the attack and very recent tough talk about the Russians has been meant to divert the public attention from leading Trump administration figures’ close and corrupt ties with Vladimir Putin’s murderous kleptocracy.  But, again, who knows? Indeed different members of Mr. Trump’s foreign-policy team, including his family, seem to each have their own foreign policies. Chaos reigns.

But one thing is certain: Goldman Sachs will be involved in all major decisions.

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Sean Spicer
Sean Spicer, the White House spokesman, is both poorly informed (like his boss) and not very smart, unlike his boss, who has a sort of feral street smarts. I think I understood what Mr. Spicer was trying to say the other day when he said that even Hitler didn’t use poison gas against civilians. Of course, Hitler murdered millions of people, many of them Germans, with poison gas in his extermination camps. Mr. Spicer was, I believe, trying to say that the German military didn’t use poison gas in direct military action, unlike in  World War I, when the Germans introduced this horrific weapon on the Western Front.

 

But having dug himself into a hole, Mr. Spicer kept digging as he tried to explain his way out of his public-relations mess. It’s just another sign that he probably won’t have his job for long, whatever his loyalty to Donald Trump.

 

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The severe fiscal problems of the University of Massachusetts at Boston are pretty representative of those of much of higher education: Endless over-budget building as  college presidents seek to erect monuments to themselves; the hiring of ever more overpaid administrators with vague and trendy titles even as tuitions surge, and ever higher percentages of faculties are “adjuncts’’ who barely earn minimum wage. Meanwhile, too many schools strive to be complicated research universities instead of focusing on teaching because “research’’ sounds much more glamorous.

 

What UMass Boston (and the state) needs is  for it to be a first-class local “commuter’’ school focused on teaching, and to leave the research to UMass’s flagship institution – UMass at Amherst and the state’s famous private research universities. UMass Boston will never win an arms race with UMass Amherst, let alone Harvard and MIT.

 

An example of the vacuous jobs being created at UMass Boston: Tom Sannicandro, a former state legislator from Ashland, Mass., just got the job of  “director of the Institute for Community Inclusion’’ at  a $165,000-a-year  salary, along with juicy benefits.  Keith Motley, the now ousted chancellor (basically president but chancellor sounds more royal) whose oversize ambitions  and edifice complex at the institution helped put it into a deficit of tens of millions of dollars, will now go on sabbatical with a salary of $355,059.  His salary last year was $422,000.

 

When that long vacation is over, Mr. Motley, a professional bureaucrat and former basketball coach, will return as a $240,000-a-year faculty member teaching…? Well, that hasn’t be disclosed.

 

What a scam.

 

The corruption that has produced obscene compensation for public company C-suites, regardless of how well they do their jobs, has long since infected public and private higher education, too.

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It’s sounds very sci-fi, but excitement is slowly growing about Hyperloop transportation systems, in which magnetically levitated trains carry passengers and freight inside a low-pressure tube at the speed of sound. One of the companies pushing for them is Hyperloop One, which has identified 11 routes across America where Hyperloops might be built.

 

By far the shortest and therefore the cheapest such route being proposed is Providence-Somerset- (to serve the Fall River area) -Boston – a 64-mile route that could take less than 10 minutes to travel. That this route is in a densely populated area whose residents are used to mass transit makes it more attractive. (By the way, Holly McNamara, a  Somerset selectwoman, proposed the stop in that town.)

 

How much would it cost? No one really knows, but certainly several billion dollars.

 

Still, some engineers think that Hyperloops could be cheaper than regular high-speed rail to construct. The giant consultancy  KMPG did a study that concluded that the per-mile cost of building a Hyperloop could be more than 25 percent less expensive than building California’s planned high-speed rail to link Los Angeles and San Francisco.

 

Of course it all seems surreal now, but as former U.S. Transportation Secretary Anthony Foxx said about the Hyperloop idea:

 

“The airplane was pie-in-the-sky, the car was pie-in-the-sky, virtually every mode of transportation we enjoy today was at one a point pie-in-the-sky idea. We have to accept that there’s a stretch here. But it’s a stretch that can yield pretty significant benefits. What surface transportation mode today can get 700 miles per hour? None. There’s a huge opportunity, we just have to be willing to do what it takes to get there.”

 

But, as he told Recode:  “The technology, the science behind it, is very sound, but it’s one of those examples of, the technology may be there before the government is. Will it happen some place? Absolutely, I’m sure it will. Not even sure it’s going to happen first in the U.S. to be honest, but I think there’ll be some proof points out there to show that Hyperloop is a real thing.”

 

Obviously, federal rail regulations would have to be dramatically changed to include 700-mph trains!

 

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After four years of controversy, construction of the Welcome Center, in a lovely, cozy new garden setting, at The Breakers in Newport will start in a few weeks. It's a pity that the actions of a small number of people in America’s hyper-litigious society have  prevented for so long the building of such an attractive and low-key facility, with a restaurant and restrooms, instead of the current no food and port-a-potties under a tent to deal with 400,000 visitors  year!

 

“This is a major milestone toward the creation of the kind of world class hospitality that we feel a National Historic Landmark should provide for its visitors,” said Monty Burnham, chairman of the board of the Preservation Society of Newport County. “With this step we move toward offering our visitors the hospitality they deserve, and that they enjoy at museums and historic sites around the world.’’

 

Quite right. This is great news for Newport.

 

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It doesn’t seem at all unfair to make in-state residency a requirement for firefighting and police jobs in Rhode Island. They should have a direct stake in the state where they’re charged with protecting the public and whose taxes pay their wages and benefits. But, reports GoLocalProv, state Rep. David Bennett, who has gotten more than $25,000 in donations from unions and labor political action committees since getting elected, is sponsoring irresponsible legislation to let out-of-state residents be eligible for such jobs. This bill needs to be killed now.

 

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Seeing tree buds swell and drop their red scales on the sidewalks and the smell of moist warm earth are among the nicest things about this time of year.


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