Slashdot Mirror
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."
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.