We're Not Alone

No, I'm not talking about alternative forms of intelligent life in the universe.  I'm talking about Vermont's long-term, structural problem.  Charles Whelan, economist and author of Naked Economics and a columnist for Yahoo!Finance, writes about rural America's demographic decline in an article titled Small Towns, Big Problems.

Whelan points to fundamental problems facing rural America.  One, that America needs fewer farms due to rising agricultural productivity, is clearly evident in Vermont, with only 1,000 dairy farms in the state. 

The second is that

highly skilled people are more productive when they're in close proximity to other highly skilled, productive people.  This makes it hard to live in a rural area. Surgeons need to be near major medical centers. Graphic designers need to be near advertising firms. Securities lawyers need to be near investment banks. As an economy gets more productive, it also gets more specialized. Each of us gets very good at a highly specific task, but that usually means that we need to be around other workers with complementary skills.

And that's nearly impossible for Vermont to overcome.  Even Chittenden County's population is small potatoes when it comes to these issues, to say nothing of Rutland, Springfield, St. Johnsbury, or Avery's Gore (population in 2006:  1).

Few people in Vermont are talking about these fundamental problems, especially the second, and what, if anything, can be done about them. 

Comments

[GreggB]

It's a curious problem. There are several people now writing stuff making the claim that a critical mass of people is needed for prosperity in the current economy. Assuming they are right what is VT to do? The way things are we won't attract more people and we have neither the housing nor the political will to build enough housing for more people. I guess VT needs a plan for poverty plan. A friend often claims that the new VT- poor and expensive is far worse than the old VT that was poorer but cheap and without onerous rules. Rural states need to figure out they are going to do to get by. I'm betting we all know of a few things that won't work...