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The fall and revival of pittsburgh: lesson for america
by truthbetold Sat Apr 26, 2014 9:59 am
These article provide a glimpse of a real world experience of Pittsburgh provides lessons in reviving a shattered economy.
http://www.washingtonpost.com/wp-dyn/content/article/2009/03/12/AR2009031202480.html
By 1988, the industry that had made Pittsburgh, battered by competition from new producers with better technology and better products, had shed 56,000 workers, or 61 percent of its workforce. This loss would reverberate through the economy, draining an equal number of other manufacturing jobs from the region. The resulting shock would drive thousands of young people away, straining an already aging population. And the effects of that exodus are still being felt.
http://en.wikipedia.org/wiki/Pittsburgh
The industrial base continued to expand through the 1970s, but beginning in the early 1980s both the area's steel and electronics industries imploded, with massive layoffs from mill and plant closures.[6]
In the latter 20th century the area shifted its economic base to education, tourism, and services, largely based on healthcare/medicine, finance and high technology such as robotics. Although Pittsburgh successfully shifted its economy and remained viable, the city's population never rebounded to its industrial-era highs. While 680,000 people lived in the city proper in 1950, a combination of suburbanization and economic turbulence caused a decrease in city population.
During the late 2000s recession Pittsburgh was economically strong, adding jobs when most cities were losing them, and one of the few cities in the United States to see housing property values rise. Between 2006 and 2011, the Pittsburgh MSA experienced over 10% appreciation in housing prices—the highest appreciation of the largest 25 MSAs in the United States as 22 of the top 25 MSAs saw a depreciation of housing values.[41] Pittsburgh's story of economic regeneration was the inspiration for President Barack Obama to host the 2009 G-20 Pittsburgh summit.[42]
http://www.economist.com/node/14460542
When the steel industry collapsed in the early 1980s, the city and region lost 120,000, or about half, of all its manufacturing jobs. Some 50,000 Pittsburghers left the region annually. The city's revival since then has been part organic and part good long-term planning. State and local officials provided investment, while universities and community and corporate leaders came together to develop economic and business strategies for the region. Pittsburgh's employment has, over the ensuing three decades, diversified quite well.
Today, its main industries, health care and education, are thriving. Pittsburgh's health-services business has almost tripled in size since 1979, creating more than 100,000 jobs. More than 70,000 work in research and development in the metro area's 35 universities (Jonas Salk produced the polio vaccine at the University of Pittsburgh in 1955) and 100 corporate research centres, such as that of Bayer usa, a pharmaceuticals company. Greg Babe, its head, says six jobs rely on one Bayer job.
http://www.washingtonpost.com/wp-dyn/content/article/2009/03/12/AR2009031202480.html
By 1988, the industry that had made Pittsburgh, battered by competition from new producers with better technology and better products, had shed 56,000 workers, or 61 percent of its workforce. This loss would reverberate through the economy, draining an equal number of other manufacturing jobs from the region. The resulting shock would drive thousands of young people away, straining an already aging population. And the effects of that exodus are still being felt.
http://en.wikipedia.org/wiki/Pittsburgh
The industrial base continued to expand through the 1970s, but beginning in the early 1980s both the area's steel and electronics industries imploded, with massive layoffs from mill and plant closures.[6]
In the latter 20th century the area shifted its economic base to education, tourism, and services, largely based on healthcare/medicine, finance and high technology such as robotics. Although Pittsburgh successfully shifted its economy and remained viable, the city's population never rebounded to its industrial-era highs. While 680,000 people lived in the city proper in 1950, a combination of suburbanization and economic turbulence caused a decrease in city population.
During the late 2000s recession Pittsburgh was economically strong, adding jobs when most cities were losing them, and one of the few cities in the United States to see housing property values rise. Between 2006 and 2011, the Pittsburgh MSA experienced over 10% appreciation in housing prices—the highest appreciation of the largest 25 MSAs in the United States as 22 of the top 25 MSAs saw a depreciation of housing values.[41] Pittsburgh's story of economic regeneration was the inspiration for President Barack Obama to host the 2009 G-20 Pittsburgh summit.[42]
http://www.economist.com/node/14460542
When the steel industry collapsed in the early 1980s, the city and region lost 120,000, or about half, of all its manufacturing jobs. Some 50,000 Pittsburghers left the region annually. The city's revival since then has been part organic and part good long-term planning. State and local officials provided investment, while universities and community and corporate leaders came together to develop economic and business strategies for the region. Pittsburgh's employment has, over the ensuing three decades, diversified quite well.
Today, its main industries, health care and education, are thriving. Pittsburgh's health-services business has almost tripled in size since 1979, creating more than 100,000 jobs. More than 70,000 work in research and development in the metro area's 35 universities (Jonas Salk produced the polio vaccine at the University of Pittsburgh in 1955) and 100 corporate research centres, such as that of Bayer usa, a pharmaceuticals company. Greg Babe, its head, says six jobs rely on one Bayer job.
truthbetold- Posts : 6799
Join date : 2011-06-07
Re: The fall and revival of pittsburgh: lesson for america
by truthbetold Sat Apr 26, 2014 10:03 am
Important characteristics of Pittsburgh revival:
1. It took a long time.
2. It is a mix of multiple change experiments.
3. It is not a single government , single solution approach.
4. Significant number of manufacturing jobs were lost.
5. Significant number of service, high tech and health care jobs came in.
6. Associated with the revival is also the environmental change of city with parks and museums.
1. It took a long time.
2. It is a mix of multiple change experiments.
3. It is not a single government , single solution approach.
4. Significant number of manufacturing jobs were lost.
5. Significant number of service, high tech and health care jobs came in.
6. Associated with the revival is also the environmental change of city with parks and museums.
truthbetold- Posts : 6799
Join date : 2011-06-07
Re: The fall and revival of pittsburgh: lesson for america
by Marathadi-Saamiyaar Sat Apr 26, 2014 10:07 am
truthbetold wrote:These article provide a glimpse of a real world experience of Pittsburgh provides lessons in reviving a shattered economy.
http://www.washingtonpost.com/wp-dyn/content/article/2009/03/12/AR2009031202480.html
Same thing can be said about Houston in the 80s - it recovered and reformed much faster due to many reasons, and southern California - when scores of military bases were closed in the 90s and military expenditure was cut.
Pittsburgh has taken much longer since the demise of the steel industry in the 70s-mid 80s. There is a 30 yr properity period and 30 year revival period. Chicag and the smoke stack industries of the 70s/80s as well went through rebirth.
Detroit is going through the same pains. Anyone remembers Atlanta in the 70s ? The Wayne williams period?
Marathadi-Saamiyaar- Posts : 17675
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Age : 110
Re: The fall and revival of pittsburgh: lesson for america
by truthbetold Sat Apr 26, 2014 10:18 am
Uppili,
The examples you give provide support the long recovery model.
In context of middle class wage drop discussion in the other thread, these examples suggest, when strategic economic changes occur, it takes time to change. It is not some simple tax and spend or tax cut and grow. Both may be employed in different periods with the revival cycle to match the needs of the time.
It should be recognized that changes mean a change of character of the city. Old jobs, old demographics and old educational system have to go and news ideas take center stage.
The examples you give provide support the long recovery model.
In context of middle class wage drop discussion in the other thread, these examples suggest, when strategic economic changes occur, it takes time to change. It is not some simple tax and spend or tax cut and grow. Both may be employed in different periods with the revival cycle to match the needs of the time.
It should be recognized that changes mean a change of character of the city. Old jobs, old demographics and old educational system have to go and news ideas take center stage.
truthbetold- Posts : 6799
Join date : 2011-06-07
Re: The fall and revival of pittsburgh: lesson for america
by Vakavaka Pakapaka Sat Apr 26, 2014 10:45 am
So, Varanasi is an eternal(ly filthy) city because ........
Paan spitting, brain-dead, Aurangazeb-loving BIMARU bhaiyyas are running the show?
Paan spitting, brain-dead, Aurangazeb-loving BIMARU bhaiyyas are running the show?
Vakavaka Pakapaka- Posts : 7611
Join date : 2012-08-24
Re: The fall and revival of pittsburgh: lesson for america
by confuzzled dude Sat Apr 26, 2014 11:35 am
I am not sure Pittsburgh is a great example of revival. Every 4th person that you come across in DC metro area would be from Pennsylvania and every 5th hails form Pittsburgh. I frequently travel to Pittsburgh (for last 12-13 years), real estate market there is flat, even during the bubble it has not seen RE values appreciate much, they were always in 1-2% range. Airlines were dropping flights to that so called international Airport. Having said that it is bouncing back but not enough to cheer loudly.
I missed that line about 10% appreciation wonder if that is relegated to selective areas of the city.
I missed that line about 10% appreciation wonder if that is relegated to selective areas of the city.
confuzzled dude- Posts : 10205
Join date : 2011-05-08
Re: The fall and revival of pittsburgh: lesson for america
by truthbetold Sat Apr 26, 2014 11:57 am
Cd
if you read the links I provided, you will find discussion on the points you raised.
A revived pittsburg lost population to both suburban development and demographic shifts. It is also my experience that you will find lot of professional from pittsburgh in many of the newly expanding cities of the southern USA (ie. Charlotte and Atlanta).
In fact that is one characteristic of revival. Lost professional segment. I
t is true of many mid western rust belt cities.
In one of the links ( I think it is wiki) they talk about how Pittsburg's real estate thrived through the crisis of 2008.
Yes. The winners in revived city will be different. Also there will be losers in any revival. First among the losers are the poor and skilled labor caught up in the industry that is going down. That is why the key is the ability to relearn and acquire new skills.
It is also the reason you cannot revive Detroit by a cycle of tax increases at a time of shrinking tax base. Service cuts, tax cuts, and pension benefit cuts are all going to happen. It is only a question of an interplay between various groups of interest. One thing it won't be is that detroit will not provide more entitlements for a long time.
if you read the links I provided, you will find discussion on the points you raised.
A revived pittsburg lost population to both suburban development and demographic shifts. It is also my experience that you will find lot of professional from pittsburgh in many of the newly expanding cities of the southern USA (ie. Charlotte and Atlanta).
In fact that is one characteristic of revival. Lost professional segment. I
t is true of many mid western rust belt cities.
In one of the links ( I think it is wiki) they talk about how Pittsburg's real estate thrived through the crisis of 2008.
Yes. The winners in revived city will be different. Also there will be losers in any revival. First among the losers are the poor and skilled labor caught up in the industry that is going down. That is why the key is the ability to relearn and acquire new skills.
It is also the reason you cannot revive Detroit by a cycle of tax increases at a time of shrinking tax base. Service cuts, tax cuts, and pension benefit cuts are all going to happen. It is only a question of an interplay between various groups of interest. One thing it won't be is that detroit will not provide more entitlements for a long time.
truthbetold- Posts : 6799
Join date : 2011-06-07
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