Why is Atlanta on such a decline? (Washington: crime rate, tax)

[WilliamM]

Originally Posted by Angel713

Some interesting information you're providing here Indentured Servant.

Yeah, this is the big question everybody around here seems to be nervously watching.

But I wonder if people aren't looking at this a little too narrowly.

For example, what would happen if instead of Atlanta simply setting its heart on the construction market coming back it instead started investing in growing some other options.

By contrast, check out what Pittsburgh has done to reinent itself after its main industry went into decline.http://tinyurl.com/8zlf6c (broken link)

[Indentured Servant]

I think eventually we are going to come back to the basics. I think that the boom or solid areas of the future will be areas with natural resources. One has to realize wealth and opportunity is the product of surplus. Wealth seems infinite when there is a surplus of the factors that create it. However, when there is no longer surplus, it’s a different calculus.

The earth’s population is growing exponentially and placing greater demands on finite resources, such as oil, land, fresh water, relative to demand for it. So I feel the places to be, in the next 25 years, are places with natural resources such as oil, natural gas, fresh water supplies, rich agricultural lands, natural trading location to markets…..ect.

I think we will see areas that were never really on the map, in regards to size, see large population increases percentage wise.....like South Dakota, Wyoming, Iowa....and places like that.

[WilliamM]

Originally Posted by Indentured Servant

I think we will see areas that were never really on the map, in regards to size, see large population increases percentage wise.....like South Dakota, Wyoming, Iowa....and places like that.

Boy would that be a turnaround. They can't pay people to stay in these places right now.

[DeaconJ]

Originally Posted by WilliamM

Yeah, this is the big question everybody around here seems to be nervously watching.

But I wonder if people aren't looking at this a little too narrowly.

For example, what would happen if instead of Atlanta simply setting its heart on the construction market coming back it instead started investing in growing some other options.

By contrast, check out what Pittsburgh has done to reinent itself after its main industry went into decline.http://tinyurl.com/8zlf6c (broken link)

BIG difference in Atlanta and Pittsburgh...Atlanta doesn't have a "main industry". The economy in Atlanta is very diversified; it has absorbed huge losses in the past (i.e. GM and Ford plants closed/BellSouth buyout/Delta bankruptcy/multiple bank butouts...First Atlanta, C&S, etc.) and because of the strong diversity Atlanta will absorb any future losses and continue to thrive. Atlanta is not in decline...like the rest of the country, the economy is in the toilet and most of the U.S. is hurting. There is still major construction throughout the city and the job market/housing market will rebound - people have to work and they have to live somewhere.

[Indentured Servant]

Well, diversity is a two double edged sword. Remember, Cities like Detroit, Pittsburgh and others became the behemoths that they are today from specializing, in effect if not intent, in one industry. When they were booming, diversified economies were not doing as well as everyone one moving to the North to factories. So simply not being diversified is not always bad and being diversified can work against you as well, relative to the competition. If all of a sudden a certain industry starts to boom in the US, the area that specializes the most will benefit the most. If your economy is diversified, and the decline economically in the nation is impacting all sectors of the economy…..diversification does not help you. The only time diversification helps you is when certain sectors of the economy or employment are doing bad, while others are doing good. That which is transpiring now is that most sectors of the economy are doing poorly…..so diversification does not help.

Again, let me reiterate that I believe that natural resources are the key for the future. Many regions of the country have problems with fresh water supplies and cannot sustain growth for very long. The world is reaching a point that it will have trouble feeding the billions of people, due to soil and top soil degradation from over farming. Cheap crude oil is the life blood of every major economy on earth and its reaching its peak out, which means rapidly rising prices will create huge opportunities in areas that have natural deposits, even if its tar sands or other more difficult to get at deposits, because the price rise of oil will make the investment cost effective.

[WilliamM]

Originally Posted by DeaconJ

BIG difference in Atlanta and Pittsburgh...Atlanta doesn't have a "main industry". The economy in Atlanta is very diversified; it has absorbed huge losses in the past (i.e. GM and Ford plants closed/BellSouth buyout/Delta bankruptcy/multiple bank butouts...First Atlanta, C&S, etc.) and because of the strong diversity Atlanta will absorb any future losses and continue to thrive. Atlanta is not in decline...like the rest of the country, the economy is in the toilet and most of the U.S. is hurting. There is still major construction throughout the city and the job market/housing market will rebound - people have to work and they have to live somewhere.

Glad for your optimism. That's certainly how I've always seen Atlanta. But these numbers about how reliant the region had become on its housing market over recent yrs did give me some pause. But I hope you're right!

Oh, and don't forget the Eastern Airlines bankruptcy. I remember what a trauma that was. But you're right. The city got through it.

[J2rescue]

Originally Posted by DeaconJ

BIG difference in Atlanta and Pittsburgh...Atlanta doesn't have a "main industry". The economy in Atlanta is very diversified; it has absorbed huge losses in the past (i.e. GM and Ford plants closed/BellSouth buyout/Delta bankruptcy/multiple bank butouts...First Atlanta, C&S, etc.) and because of the strong diversity Atlanta will absorb any future losses and continue to thrive. Atlanta is not in decline...like the rest of the country, the economy is in the toilet and most of the U.S. is hurting. There is still major construction throughout the city and the job market/housing market will rebound - people have to work and they have to live somewhere.

And that diversity is not by accident. Metro and state leaders pursue any and every kind of business that makes sense for Atlanta. In fact one recent bright spot that has yet to have an effect on the local economy is businesses from China and elswhere in Asia that are locating US facilities here.

It is true that the metro relied too much on growth as an industry since the last recession but that in no way mandates that that will be the case going forward.

[DeaconJ]

Originally Posted by WilliamM

Glad for your optimism. That's certainly how I've always seen Atlanta. But these numbers about how reliant the region had become on its housing market over recent yrs did give me some pause. But I hope you're right!

Oh, and don't forget the Eastern Airlines bankruptcy. I remember what a trauma that was. But you're right. The city got through it.

That's the one I was trying to think of! Eastern Airlines...even though it wasn't based in Atlanta, it had major operations here.

I always try to be optimistic...it can't hurt.

[WilliamM]

Originally Posted by DeaconJ

That's the one I was trying to think of! Eastern Airlines...even though it wasn't based in Atlanta, it had major operations here.

I always try to be optimistic...it can't hurt.

Maybe optimism itself is an industry. Hey. I think we're on to something.

What if that's been Atlanta's secret industry all along? Hmm.

[Trae713]

Originally Posted by WilliamM

Boy would that be a turnaround. They can't pay people to stay in these places right now.

Definitely not true. Especially Iowa and SD.