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As Two Ships Passing in the Night: a History of American State and Local Economic Development

PART 1: Classic Era of Economic Development

Chapter I

In the Beginning was Chapter One

The History, the Drivers of Economic Development, the Chapter One Model—and the Two Ships Privatism and Progressivism

Chapter II

As the Twig is Bent: Pre-Civil War Migration & Political Culture

Penn and Philadelphia, Winthrop and Massachusetts—the Migration of Political Cultures and How Culture Impacted Economic Development

ALERT: Chapter 2 is being expanded into a book, As the Twig is Bent, currently under development. The reader can return to Home Page and Select As the Twig is Bent to explore more deeply

Available Topics (Footnotes Excluded): General Introduction; Penn’s Privatism and Warner’s Private City–Philadelphia and Pennsylvania; Boston and Massachusetts: Puritan-Yankee Political Culture, Winthrop and Josiah Quincy; Cultural Migrations: the Scots-Irish; the New England Yankee Diaspora; Southern Cultural Migrations; Immigration: Irish and Germans; Summary and Observation on Political Culture and Migrations

CHAPTER III

Early Republic Economic Development

The Tools of the Trade; Early Republic Competitive Hierarchy, Transportation Infrastructure; Corporate Charters and “the gifts that keeps on giving”: Constitutional Gift and Loan Restrictions and Dillon’s Law

Available Topics (Footnotes Excluded): Intro to Early Republic Economic Development and Role of the National Federal Government, Clay’s American System; “Tools of the ED Trade” Tax Abatement and Eminent Domain’s Historical Roots; Competitive Urban Hierarchy, Transportation Infrastructure the First EDO–the Corporate State-Charter, Canals and Steamboats; Railroads as an EDO, Off to the Races, Case Study of the Illinois Central RR the ED Innovator; Big City-Building, Chicago and Ogden as City Builder: Dominant ED Strategy of the Nineteenth Century; Gift and Loan Clauses: Regulating the Public/Private Partnership; Dillon’s Law

Chapter IV

Industrial Big City: Primeval Soup of Big City Economic Development

The Jurisdictional Economic Base and Profit Life Cycle, Agglomerations; Railroads to Subways; what the heck are Big Cities? The Development of the Industrial Era Big City, Industrial Era Big City Economic Development Policy System

Available Topics (Footnotes Excluded): the Gilded Age: Birth of the Northern, Industrial “Big City” and its Economic Base by Sector Agglomeration; Railroads Lead the Way for Managerial Professionalization and Robber Baron Capitalism; Growth and Infrastructure (Water and Internal Transportation): Midwives of Big City Economic Development; the Great Boston and New York City Race to Build the First Subway; the Utility and Streetcar Franchise: the Public-Private Hybrid EDO; Birth of “Places” for Big City Place-Based Economic Development: Big City CBD and Neighborhoods; Gilded Age Suburbs–Annexation and Suburban Autonomy; Policy-Makers in Gilded Age Municipal Policy Systems: Political Machines, Businessmen Mayors, Real Estate Boards, Municipal Bureaucracies, the New York City Department of Docks

Chapter V

Big City Economic Development

Beyond Boosterism, Chamber-Style Economic Development; Shifting, but not Shifty Business Elites, “First Wave” Chambers; Big City Policy System Capacity-Building, City Efficient, Structural Reformers, City Managers, and Selling Frozen Water

Available Topics (Footnotes Excluded): First Wave Chambers of Commerce: Much More than Boosterism, First Wave Chamber-led Economic Development; Gilded Age Mainstream Economic Development: Boards of Trade, Exposition Fever, Attraction and Promotion, Tourism, Tax Abatement & Deal-Making; City-Building–Gilded Age Planned Communities: Company Towns, Garden Cities (Frederic Howe); Professionalization, the Second Wave of Chamber-Led Mainstream Economic Development: New York City COC, Ryerson Ritchie, Diffusion of Second Wave Chambers; Second Wave Signature ED Strategies: Chamber Industrial Bureau and the Industrial Park; a Critique of Current “Waves of Economic Development Theory”: First and Second Wave Chambers Much More than Boosters and Tax Abaters; Development of the Twentieth Century “Modern” Policy System: Mugwumps, National Municipal League, Commission, City Manager Forms of Government, Municipal Research Bureaus; Structural Reformers, the City Efficient, and Selling Frozen Water as Economic Development

Chapter VI

Two Paths Diverge: Take One

Early twentieth century community development, from settlement house to neighborhood revitalization; social reform and socialist mayors; African-American economic and community development; Path to City Beautiful, City Beautiful and Boston’s Noble Experiment

Available Topics (Footnotes Excluded): Two paths diverge: take one: Rise of Community Development, Social Welfare (and Faith-Based), Neighborhood-Based-Settlement House, Housing Reformers, Playground-Recreation Movement, the Pittsburgh Survey, Neighborhood Improvement Associations; Social Reform and Socialist Mayors, Henry George (New York City), Hazen Pingree (Detroit), and Tom Johnson (Cleveland); Schism in African-American Community Development: Booker T. Washington and W.E.B Du Bois; the City Beautiful: Parks Movement, Columbian Exposition (1893), Charles Mulford Robinson, Cleveland “Beautiful” as a City on a Hill; Daniel Burnham, the Chicago Plan; Kansas City’s Bipolar City Beautiful, the Pendergast Machine, Park Bureaus as CDO; Boston’s Noble Experiment–the CD Chamber: Boston Plan, Honey Fitz (RFK would be proud), Port of Boston Movement, 1915 Boston Plan

Chapter VII

Pre-Depression South

Where is the South’s Industrial City? South as a Colony; Southern-fried Economic Development: Redeemers, the “Divided South” and City-Building; Southern Chamber-Style ED; Rise of Southern Textile Industry; the Early Rise of Big City Texas

Available Topics (Footnotes Excluded): Pre-Depression South: South’s lack of industrial cities, South and immigration: the prototypical “Cotton Town”; The South as a Colony; Southern-Fried Economic Development: Reconstruction, Southern-style gift and loans experience, and Redeemer-New South reformer-led policy systems; Northern Banks and Railroads Imposed Southern industrial infrastructure and city-building: Birmingham, Miami; Southern Chamber Economic Development: Charleston, Atlanta, and New Orleans Port Authority; Southern self-development: the Southern Textile Industry; the Southern pre Depression Diaspora; Texas: Early Rise of Texan Cities and Texas Business Culture: Houston Port Authority, Dallas-Fort Worth Rivalry, Dallas City Beautiful

Chapter VIII

Western Economic Development into the Twenties

“You Ain’t in Philadelphia Now, Darling”, Western City-Building, Eastern Hegemony and Beyond Boosterism; Early Pacific Coast Cities, Earthquakes; Port Authorities; Los Angeles—the City ED Built; Federal Infrastructure; Fortress California and Pacific Coast Regional Hegemony

Available Topics (Footnotes Excluded): Western economic development into the twenties: Golden Age of City-building (1880-1920) and Instant Cities; Western-style City-building: Land Speculation and Railroad-led ED: Denver, Wichita, Oklahoma, the East Imposes its Hegemony-the mercantile model; Western City-Building, City-Builders and Business Elites, Way More than Boosterism; Baby Big Cities of the Pacific: San Francisco; Baby Big Cities of the Pacific: the Northwest, Portland and Seattle and their city-building Port Authorities; Baby Big Cities of the Pacific: Los Angeles, City that ED Built; the Federal Government as Western City-Builder: Infrastructure, San Diego’s Fortress Strategy, Fortress Strategy and the Pacific Urban Hierarchy

CHAPTER IX

The Twenties: Not So Calm Before the Storm

Chamber’s Golden Age; Onionization and a Pinch of Siloization; States and ED; the Oligopolistic Profit Cycle Grinds, Lehigh Valley, Second Phase of New England’s Textile War; Pre-Depression Community Development; Decentralization and the Twenties Suburb; Importance of “Growth” as ED’s Primary Goal

Available Topics (Footnotes Excluded): Back to the Northern Big Cities and the Last Chapter in Part 1: the 1920’s; the EDO/CDOs of the 1920’s, the American Industrial Development Council, the States and 20th Century Substate ED, the State Business Climate; the Oligopolistic Profit Cycle Grinds On: the First Auto Alley and Agglomeration, Wilkes Barre and Decline of Pennsylvania’s Anthracite Coal Cluster; Broken Cluster: Second Phase of New England’s Textile Industry Decline; Quo Vadis Community Development: Neighborhoods and the Chicago School, Planned Neighborhoods-Clarence Arthur Perry, CD and the Regional Plan of New York, Lewis Mumford and the Suburbs, Fracturing of Progressive Economic/Community Development and the Regional Plan of New York; the Suburbs in the 1920’s, Growth, Central Cities Deal with a Growing Suburbia, J.C. Nicholls and his Kansas City Mall and Country Club

PART II: “RED SKY IN THE MORNING, SAILOR TAKE WARNING”

The Transition: 1930-1961

CHAPTER X

Big Cities: New Deal, War Years

Big Cities Cope with the Depression, New Deal and Big City ED, Le Corbusier dukes it out with Frank Lloyd Wright, Robert Moses vs Catherine Bauer; Alinsky and the Second Ghetto; War Comes to Big Cities and Big Suburbs; what is Industrial Decentralization?

Available Topics (Footnotes Excluded): the Pivot to Part II: From Growth to The Winds of Depression, War, and Victory, 1930–1961; Northern Big Cities Depression, New Deal and War Years: Overview, Federal Programs, La Guardia, and Depression Chamber of Commerce; Evolution of Corporation Elites: The Committee for Economic Development; From Rural to Urban, the Early New Deal: Our Cities and Feds Lead in Workforce ED; the Decentralization Crisis, Le Corbusier and Robert Moses, Frank Lloyd Wright,Tugwell/Bauer’s New Town “Multiple Nuclei” Alternative; Community Development Turns a Page: Chicago Area Project, Back of the Yards: Reveille for Radicals (Alinsky), and the Second Ghetto: A Metaphor for “Turning the Page”; Big Cities “We Saw Our Opportunities and We Took Them”, the Feds Industrial Decentralization Strategy, War Production and Suburbia

CHAPTER XI

Urban Renewal: The Scarlet Letter of Economic Development

Pre-Urban Renewal, Feds Get Involved; Phases of Urban Renewal; Urban Renewal As Anti-Suburbanization; Types of Urban Renewal; CD Urban Renewal Fights ED Urban Renewal; Last Phase of Urban Renewal: Urban Renewal

Available Topics (Footnotes Excluded): Urban renewal: the scarlet letter of economic development: Opening Statement and Purposes; Pre-New Deal Urban Renewal, aka Housing and Planning led by Community Developers, mugged in D.C. by Local Mainstream EDOs and Business Think Tanks; the New Deal and Urban Renewal (1930’s) — Creating Depression-Era Jobs, the Housing Act of 1937; Urban Renewal as War Production Housing: Let’s House the Workforce Near the Factories (the fate of the Southern Diaspora); Suburban Decentralization Rears its Ugly Head (mid-1940’s): CBD decline is the reason, the “business slum” battles it out with CD public neighborhood housing focus, the locals take the lead–Redevelopment Agency and Baltimore as a Case Study; Robert Moses Leads the Parade: Moses as an Burnham-style ED planner, Pittsburgh and David Lawrence, the United Nations Project–the Breakout; Late Forties Urban Renewal: Taft and Housing Acts, Business Steals Urban Renewal from CD; Urban Renewal? Trying to Make Sense of this Chapter

CHAPTER XII

The South: New Deal, World War II & the Fifties

BAWI. Second Reconstruction: Plantation Economy Gone with the Wind; War Production and Industrial Decentralization; Selling the South Starts the Shadow War, Civil Rights Movement and ED

Available Topics (Footnotes Excluded): Introduction and the Alleged Catalyst: BAWI (Balance Agriculture with Industry); the South and the New Deal: the Second Reconstruction (Breaking Up the Plantation Economy, TVA, the Nation’s Economic Problem Number One, Second Reconstruction with National Minimum Wage and Unions (FLSA)); War Production, Population Migration and Federal Industrial Decentralization: the South Shifts to Contemporary Forms of Economic Development; the Selling of the South: Attraction Promotion and Business Climate, the Rise of Right to Work; the Shadow War (the Industrial Revenue Bond) Schism Transforms ED into Regional Competition; the South in the Civil Rights Era from an ED Perspective

CHAPTER XIII

The West: New Deal, War Years & Fifties

Roosevelt’s Western Revolution; Federal Government and the Jurisdictional Economic Base; Western Postwar Suburbanization: Simultaneous Suburbanization; Snapshots of Western Policy Systems: Los Angeles to Honolulu

Available Topics (Footnotes Excluded): The West: New Deal, war years, and the fifties: Roosevelt’s Rural Western Revolution; War: the Unspoken and Devastatingly Effective Economic Development Strategy: Industrial Decentralization, Federal Government as City-Builder, and Federal Government Jumpstarts Airport Development; Do You Know the Way to San Jose?: Population Migration, Post-War Federal Industrial Decentralization, Colorado Springs a Mini-Case Study; Western Postwar Suburbanization: War Production and Public Housing, Demographics of In-Migration, Simultaneous Suburbanization; the Postwar Western Policy System: Business Coalitions, Western Political Leadership and the Priority of Economic/Population Growth; Snapshots of Postwar Western Cities: Los Angeles, Portland, Oklahoma City, Denver, Albuquerque, Las Vegas, Honolulu

CHAPTER XIV

Dry Rot to Decay: Big City Change in the ‘Wonder Bread’ Years

Truman-Eisenhower Federal Government: SBA to Interstate Highways; Gruen/Jacobs and the CBD; Mid-Century Big City Suburbs; Third Phase of the New England Textile War; Port Authorities and Onionization

Available Topics (Footnotes Excluded): Dry rot to decay: Big City change in the “Wonder Bread” years, 1945–1960: Introductory Comments; Truman-Eisenhower Years: Employment Act of 1946, Taft-Hartley, 1945 Hays-Bailey, Operation Bootstrap, Eisenhower federalism, Agriculture and Rural ED, Small Business Administration; A Macro Look at the Interstate Highway Act: Victor Gruen and Jane Jacobs Relook the CBD in its Wake; Mid-Century Suburbs in the Northern Hegemony: Levittown, the Litany and Dilemma, the Selling of the Suburbs, the Varieties of Suburbs; the Second New England Textile War: Massachusetts, Maine and Muskie, New England, Textile Deindustrialization Shifts to Congress (Senator Kennedy), Judicial Precedents Impair Effective ED strategy; Port Authorities Evolve, the Intracoastal Waterway, Containerization, NY-NJ Port Authority, Siloization and Onionization of Port Authorities

CHAPTER XV

Hegemonic Big Cities and Rising Sunbelt

The Big Hinge; Big City Urban Renewal: Boston and Philadelphia; Postwar Sunbelt Urban Renewal: Atlanta, Norfolk, Oklahoma City and San Diego

Available Topics (Footnotes Excluded): Hegemonic Northern/Midwestern Big Cities and the Rising Sun Belt–Part II in Retrospect: Urban Renewal, Renamed Revitalization as the Big Hinge; Northern Big City UR: Overview, Boston: James Michael Curley, Hynes and his Bulldozer, the Vault, West End, Collins and Ed Logue; the Philadelphia Story: Business Coalition and Policy System Change (Joseph Clark, Richardson Dilworth), Edmund Bacon–the Planners Implement UR, Society Hill, Planners and Economic Developers Split and the “Birth of Eds and Meds”; the Postwar Sun Belt Approach to Urban Renewal/Revitalization: Simultaneous Suburbanization, Domeism, western regional hierarchy competition, Urban Policy Systems and Political Culture, Initial Contrast with Northern Big Cities; Sun Belt Urban Renewal/Revitalization Vignettes: California (Sacramento and the Origins of Tax Increment Financing), and Atlanta (Hartsfield, Allen and the Good Ole Boys); Sun Belt Urban Renewal/Revitalization Vignettes II: Norfolk and Oklahoma City; Sun Belt Urban Renewal/Revitalization Vignettes II: Sun Belt Urban Renewal/Revitalization Vignettes III: San Diego, a Pacific Coast Can’t Do Perspective–On the Cusp of Neighborhoods and Environmentalism

Part III: Foundations of Contemporary ED/CD

Mainstream ED and New Style CD; Federal Government; the Two Ships; Competitive Hierarchies and Regional Change; State Governments; Shifting Jurisdictional Economic Base; Strategies, Tools and Programs; the Policy World

Available Topics (Footnotes Excluded): Thematic Overview of Part III

Chapter XVI

The Sixties

Kennedy’s Experimentation; Innovation in Community Development: Woodlawn and Gray Areas; War on Poverty and Great Society; HUD, CUED and EDA; Nixonian Thermidor: the Feds “Permanent Role” in sub-state ED/CD

Available Topics (Footnotes Excluded): The sixties: THE KENNEDY YEARS: Area Development Act, Public Works Acceleration Act (1962), 1962 Manpower Development and Training Act (MDTA); Innovation in Community Development: Woodlawn, Gray Areas and Mobilization for Youth (MFY), Experts and Bureaucratic Bowels; the (Economic Development) Great Society: War on Poverty, SBA, Housing Act of 1964, Housing and Urban Development (HUD),Appalachian Regional Development Act: the South and Great Society,Economic Development Administration (EDA); Council of Urban Economic Development and American Economic Development Council; HUD and Model Cities, National Historic Preservation Act of 1966, RIOTS; Nixonian Thermidor: New Federalism, Comprehensive Employment and Training Act, Nixon’s Workforce Initiatives, 1974 Housing and Community Development Act,Historic Preservation Act of 1976,EDA Changes its Stripes, SBA; Last Thoughts on Great Society

Chapter XVII

The Seventies: The World Turned Upside Down

Postwar Community Development: Acorn to NHS to CDFI; Big Cities Implode: Will You Play in my Sandbox? Second War Between the States; Shifting Sectors: Auto Alley, Route 128 and Silicon Valley

Available Topics (Footnotes Excluded): The seventies: Transition into a New Order; Post-Great Society Community Development I: Black Capitalism, Black Community ED, Community Development Corporations; Post-Great Society Community Development II: Acorn, National People’s Action (CRA), Alinsky CD, Settlement House to Neighborhood Services, Housing/Slum Removal to Neighborhood Revitalization, NHS, Community Land Trust, South Shore Bank, CDFI; Won’t You Play in my Sandbox: the death of cities, Myrdal’s Vicious Circle, Refunction the Central City, the Central City Fiscal Crisis, Drop Dead Cities sayeth the Feds; Second War Between the States: How Economic Development Became Ground Zero, Who’s to Blame?, Washington D.C.’s Regional Economic Development Advocacy Policy, Regional ED Competition (Sun Belt vs. Snow Belt); Shifting Sectors-Clusters: the Second Auto Alley; Rise of Technology-Route 128, Feds Pay for Tech Innovation, Silicon Valley

Chapter XVIII

Through the Eighties: Reversing Decline

Carter Years and Reagan Devolution: the Feds Regroup; Explosion in Sub-Municipal EDOs; Messiah Mayors: Big Cities Stabilize; Reagan ERA Community Development: Nehemiah to Sandtown; Polycentric Post-Suburbia

Available Topics (Footnotes Excluded): the eighties: reversing decline: Carter-style ED, CDBG, UDAG, the “earmark”, White House Conference and SBDC’s, National Agenda for the 80’s, FTZ, CERCLA-brownfields; Reagan Devolution: EDZ’s, IDB’s, JTPA, SBA, SBIR, CDBG Small Cities, PTAP, UDAG, Manufacturing Extension Partnership, Impact of Devolution; Explosion in Sub-Municipal EDOs: Main Street, Business Improvement Districts, Economic Development Zone, Tax Increment Financing Districts, Wrapping Up Sub-Local EDOs; Big Cities Push Back the Shadows: Refunction the CBD, But First “Pay the Bills”, Messiah Mayors, Rebuild the Core, Sports and Stadiums, Convention Centers and Tourism/Entertainment, Stability Achieved; Reagan Era Community Development: LISC, Nehemiah and Dudley, Issues in Neighborhood Community Development, Comprehensive Community-Building Initiatives Movement, Sandtown; Polycentrism and Post-Suburbia: Edge Cities and Boomburbs, Suburban City-Buildings, Woodlands, Privatopia, Diversity is our Middle Name, Wrapping Up Post-Suburbia

Chapter XIX

Foundations of Contemporary Practice and Policy Emerge

Great Forces at Work; Deindustrialization; Not-Ready-For-Prime Time Entrepreneurial State: Massachusetts; Big Sort Political Culture and Policy System Change: Redefining Growth; New Strategies: Economic Gardening to Casino Gambling

Available Topics (Footnotes Excluded): Great Forces at Work: a Look at the Currents of Change in Transition Era; Deindustrialization: Bluestone and Harrison, Great Reindustrialization Debate, Schumpeter and Deindustrialization,Deindustrialization: A Retrospective View; Not Yet Ready for Prime Time Entrepreneurial State: New Role for American States in ED?, Massachusetts-Case Study (Dukakis, Capital Formation Strategy, Geographic Targeting, Lowell Heritage Park, Siting Public Facilities, Prop 2 1/2 New Governor King, the Economic Developer, Mass Technology Park Corporation, Bay State Skills Corporation, Dukakis Second Administration (Centers for Excellence, Commission on Mature Industries, Assessment: Rise of the States: Fosler and Eisinger; Change in State and Local Policy System and Political Culture: the Big Sort (Bishop), Immigration, the New (new) South and the Vanishing Sun Belt, Generational Cohort Migrations (Retirement), Boomers and progeny: it depends on what growth is, Western Neighborhoods and Slow Growth; New Strategies for the Nineties: Federal Government Carves Out a Role: People v. Place, New Markets, Economic Gardening, Casino Gambling, New Urbanism