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Missing the family

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Great Information, a Little Incomplete

Here's a great fish story!

Stories of (austere) spiritual practice

The Education of Gordon K-Gordon Durnil's book is about the tensions between his role as a problem-solver and the Kafkaesque operations of government which usually have little to do with solving problems. A lawyer from Indiana and former Republican State Chairman, Durnil was appointed to an international commission to investigate toxic substances in the Great Lakes region. Of particular concern was the growing evidence that persistent toxic substances were having a dire effect on human health, as demonstrated by increases in cancer, reproductive problems, and in children, learning disabilities and immune deficiencies.
Durnil spent most of his time going to meetings and writing reports. He interviewed scientists from the U.S. and Canada from industry, government, environmental groups, and academia. Although it appears that one of the purposes of the commission was to figure out its purpose, Durnil believed that the commission functioned best as a catalyst for action by gathering these groups together, trying to get them to listen to each other, and then releasing information to the public. More specifically, he found sufficient evidence that the commission ought to do what it could to eliminate toxic substances from the region.
The reader gets taken into this world of government almost as if it were a science fiction novel. There is the strange, legal language of abstractions and acronyms; the tangled web of authority and numerous committees, where responsibility is difficult to locate; the contradictions and illogic of numerous actions and inactions; the exasperation that Durnil felt from trying to negotiate this maze. The incompetence of government might be comic if it didn't have dire consequences. There are numerous obstacles to the truth, which Durnil divides into separate chapters as reactions from government, industry, environmental groups, public, press, and health-care professionals. Sometimes it seems there are nothing but barriers, leaving Durnil with nothing but questions.
One of the more interesting obstacles was the resistance by fellow Republicans. Few were interested in the consistency between conservatism and conservation, the constitutional obligation of government to protect its citizens, or the common-sense desire for clean air and water. On this issue there ought to be nonpartisan consensus. But then that would imply that problem-solving is a high priority among politicians, and politicians tend not to be problem-solvers.


Solid but not much new.He knocks the widely held belief that Rust Belt manufacturing employment has declined since the 1970s because it was home to several troubled industries: steel, machine tools, and motor vehicles. He shows that employment growth rates were much higher for the nation in these key two-digit SICs than they were the Rust Belt states between 1977 and 1989. Crandall skirts any further analytical detail in this investigation by acknowledging that intraindustry demand shifts could largely explain the interregional growth rate differentials for these industries, thus requiring data at the three- and four-digit SIC level. Duffy (1994), who was able to make a stab at two-digit SIC analysis, showed that the Rust Belt's relatively higher wage (caused by its increasing relative unionization rate?) and tax rates are largely responsible for its higher rate of employment decline in these sectors. Crandall reworks Wheat's (1986) analysis of manufacturing employment change at the labor-market (metropolitan) and state levels. He repeats this analysis for new plants, plant expansions, plant contractions, and plant closures by using the Small Business Administration's database, which is known for its dubious integrity (it is also no longer produced). He also repeats the state-level analysis for nonfarm employment and gross state product. Little new is gained from these additional exercises. Two novel explanations of manufacturing employment shifts to which Crandall draws attention are the costs of compliance to environmental standards and the effects of exchange rate fluctuations. Unfortunately he opted not to include these variables in his regressions, despite revealing evidence of their strong relationships to interregional employment shifts.
The weakest part of Manufacturing on the Move is the motivation for its existence. Crandall acknowledges the research that explains U.S. interregional manufacturing shifts, but fails to note the new contributions his book offers this large literature. Indeed, the book is mostly an update of Wheat (1986) but with an eye toward explaining income convergence/divergence among census regions. The link between employment and income made through an analysis of relationships between employment and earnings.
In summarizing the book, Crandall simply notes that labor market variables are key to interregional employment shifts. This finding is not new nor was it ever much of a surprise to industrial location analysts, especially in light of the increasing influence that world markets have been levying on the U.S. economy. This is because, on average, labor costs compose approximately 70 percent of the value a firm adds to its product (by definition, the value a firm adds to its product is the sum of the price components over which it can directly impose cost controls).
In summary, I found Manufacturing on the Move a solid book that offered little new in the form of substance. Hence, it would serve as a good class room text on industrial location that should be supplemented by articles with more detail on selected topics. Since it is easy to read and also rather brief, I also recommend it to the economic development practitioner, despite its lack of new contributions to the literature.


Marine Invertebrates and Plants

An excellent introductions to wetland habitats

A wonderful journey on the North flowing Mississippi River