Moving to Change

Throughout history, one of the major drivers of change has been the development of transportation systems. The Roman Empire grew so rapidly because the Romans built a network of roads across their territory that facilitated both commerce and the rapid movement of their legions. Britain grew from an island into an enormous empire because the British mastered the seas. For centuries, no other nation could challenge British domination of sea transportation. New York City grew to prominence because it had the two main transportation needs of its time: a first class seaport and a relatively easy route for travel to the west, i.e., a way to reach the American heartland. The other large 18th century American cities could not compete. Railroads drove the industrialization of America. Even the shape of cities changed due to transportation. In New York, for example, the subway system allowed the population that had clustered into lower Manhattan to spread across the entire city. Highway systems made possible the development of the suburbs as a major destination for regional populations. Those same highway systems made the migration of American industry away from the old centers a reality. Fabric made in southern textile mills could be shipped north for manufacture and still compete with other mills because transportation costs fell sufficiently to allow that system to work. The recent exodus of much manufacturing from the United States to other countries is also the result of the development of inexpensive transportation systems. Fourty years ago, it was insufficient to have low cost manufacturing in Asia if the cost to ship the finished product to America was so high as to make the goods unmarketable. In other words, globalization is principally a revolution in transportation systems and costs.

Another way to look at transportation is to say that the new global networks actually allow much wider competition for world markets. Supermarkets sell blueberries that were grown in Chile and lamb from New Zealand. Fifty years ago, this just did not happen.

The strange thing is that a big chunk of America seems to just ignore the changes that the transportation revolution has wrought. Labor can fight against the right to work laws in Michigan without ever addressing how Michigan is supposed to compete with manufactures in Asia or South America if the cost of workers in Michigan is much higher. The choice here seems to be between "right to work" on the one hand and "right to unemployment" on the other. Government stimulus programs funnel funds into projects built with imported products. Even electric car and other green energy grants ended up going to manufacturers outside the USA.

I will not attempt here to present an answer to how to deal with the issue of globalization. I merely point out that this is an issue that needs a response other than ignoring it. The first step to solving this problem is recognizing that it exists.