...One solution Moretti suggests is to help more people move to the innovation hubs. As things stand, many of the best-performing cities limit their populations with development restrictions. Creating more density in cities such as Austin, Texas, San Francisco and San Diego would benefit service workers and low-income people, who Moretti shows do better in these cities even after accounting for local living costs. It would also allow low-income people to move out of the depressed, stagnant towns. That would reduce rent costs in those declining areas, as well as making local job competition less intense.
...Trump's economic team needs to read Moretti's book. Writing angry tweets at companies that open factories in Mexico won't create good jobs for American workers. But expanding universities and allowing greater urban density just might do the trick. If Trump and his people can't do this, the Democrats should make it a pillar of their own economic strategy. There is no way back for the U.S. economy -- only forward, further into the innovation age."
Edited by hst2, 13 March 2017 - 08:30 PM.