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Can Tech Save Small Town America?
theodp writes "Declaring that small town life no longer has to be separate from financial success thanks to technology, Amazon.com CEO Jeff Bezos told North Dakota state officials to take hope in people such as Napster's Shawn Fanning. Interesting remarks, considering that Fanning conceived Napster in small-town Boston and the jobs Amazon's brought to rural areas don't exactly scream financial success."
Can technology ever solve social problems?
And now, for no additional charge, I provide the answer!
No!
"Live as if you'll die tomorrow." Ridiculous. You could die later today.
All of these articles drive me crazy. I ran a business in "small town" America -- it was a retail store. I made sure my prices were just as competitive as Amazon or other dotcoms, and the local customers loved it to a point.
Yet the small town was the reason I had to leave the business. They wanted more sales tax revenue (which made me less competitive than the dotcoms once you factored in almost 9% additional cost). They wanted to raise minimum wages, which made it impossible to stay competitive with the dotcoms. They wanted me to add a bathroom once I doubled my square footage (I was the most successful ma-and-pa retail store in that town's history). They wanted me to add an additional handicapped parking spot (which ended up occupying more than 22% of my total available parking spots even though I had never had one handicapped customer in 4 years of business -- we sold sporting equipment).
In the end, I wouldn't surive even if a paperwork error forced us out of business anyway. The demands of small town USA made it so I couldn't be make it in small town USA.
People move to small towns often to get away from the high overhead of living in the urban areas. Rural living can often mean rural salaries. Yet the rural communities that I ran 2 out of my 3 retail stores in were trying very hard not to be rural. Taxes went up (sales, property and residual regulatory user fees). Citizen services went WAY up (volunteer fire and ambulance squads because taxpayer funded unions).
In the end, small town USA will destroy itself by pretending it can mimic the high debt, high tax world of the big city. The only thing they don't realize is that they will chase away the customers that drove to small town USA to save a buck or three. Who will pay for the "gentrification" changes then? Tech companies? Ha!
Funny, I was just reading a paper on this exact subject. A couple of economists, having noticed that similar businesses tend to clump together even on an intra-city scale, studied the pattern of business siting decisions in New York. (For instance, graphic design-related businesses are concentrated in Chelsea and along 23rd Street. Why?) Skip the boring regression analyses, which just formalize what you already know intuitively, and you have a good summary of why geography still matters--and always will.
Did anyone read this link from the summary?
The folks get to ride a bus for 3 hours each day to/from work. Their shift is really a 12-hour shift because of this, since they get it at 15:00 and get home around 03:00. The day shifters get 9.50$ US/Hour, and night people get 50 cents more (a whole 4$ more/day; 1,040$ more/year).
Given 52 weeks with 5 business days, 8 hours/day, gives a salary of $19,760 before taxes for the day shifters. Is that above the US poverty line? In Saskatchewan (where most of basic healthcare is taken care of, and things like food are a bit cheaper), our poverty line is around $16,000/year. Any medical problem in the US is going to cost hundreds (if not thousands) of dollars -- I've seen what your drugs cost at the corner store. If you adjust it, I'd say they're probably pretty close to the poverty line.
Adjusting the 8/hour wages for the true 12/hour day with commute, the poor folks are actually earning $6.34 an hour, which is a lot closer to minimum wage. You can argue that the time on the bus isn't lost to them, but I don't see them being able to pursue most hobbies, clean their houses, or be there for their children in that time.
So, in fact, tech is not saving small town America. These folks are just as poor and not well off as any inner-city folks who have to bus for hours to work for almost nothing, while their children are home alone. They live in poverty, and they have no time to themselves for self development.
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Internet Explorer (n): Another bug -- that is, a feature that can't be turned off -- in Windows.
I just moved from Washington DC to a small riverfront town in Maryland to start my business. A large component of this decision -- aside from the reduction in stress -- was the ability to function on less money than I could in the city. A new business doesn't make a lot of money, but when your overhead is low you have more time to make it work for you. In the city, my overhead would have been too much. It's also cheaper to buy property in a small town than a city like DC.
Well duh. All businesses want to increase profits. In fact, I greatly suspect you're not much different, and you even do stuff to try to increase your own salary. Shame on you!
I would LOVE to live in a small town. I was born and raised in one, and I hate the big city life. I would gladly trade a third of my salary for the same job in a small town. No commute, no traffic, no crime, affordable homes, friendly people. Someone, please exploit me!
Don't blame me, I didn't vote for either of them!