Saturday, January 18, 2014

State Of The City: Part 3

On Friday, Part 1 of this series. the 2014 State Of The City Report was made known by George Hartzman.  Included in the Executive Summary of the report by Dr Keith G Debbage was the following statement, a thinly veiled prompt to Greensboro City Council members to approve certain projects that are now before them:

"THE ARTS & ENTERTAINMENT, ACCOMMODATION, AND FOOD & DRINK SECTOR NEEDS A SHOT-IN-THE-ARM
· Greensboro has experienced a four year decline in the share of all jobs attributable to this sector, declining from a five year high of 12.8% in 2009 to 10.7% of all jobs in 2012. The ongoing efforts to build the Tanger Performing Arts Center and related hotel development may well remedy this problem. That said, this sector generated the lowest average wage rates of any major industry group included in this Report (i.e., $15,395). "

Seriously, Dr Debbage really published that?

Roch Smith Jr replied:

"Once again we see downtown bias inflicting stoopidity on our civic discussion. Despite acknowledging that the category has the lowest wages, the report says that the food and drink sector, being suppressed by higher wage job growth, needs a "shot in the arm," and pronounces, without question or qualification, that building the downtown performing arts center and hotels will "remedy" this situation. "

Roch seems to hit the nail squarely on the head.  Debbage reiterates on Page 12 of his report:

"An important part of any city economy is the arts and entertainment, accommodation and food industry particularly in downtown areas which tend to act as important focal points for the industry. However, Greensboro’s share in this industry decreased from 11.6% of all jobs in 2011 to 10.7% in 2012 – the second largest relative decline of any major industry in Greensboro for that time period and part of a four year decline in the share of jobs attributable to this sector of the economy. Although the Greensboro city center has recently experienced a rebirth of sorts – particularly the nightclubs and bars along South Elm Street – more could be done to attract young urban professionals to the city. It is likely that the ongoing efforts to the build the Tanger Performing Arts Center and related hotel development may well remedy this problem."
And on Page 13 he writes:

"The arts and entertainment/accommodation and food industry generated the lowest average wages of all the major industry groupings in this report where the average wage rate was $14,942 in 2011 compared to just $15,395 in 2012. That said, performing artists and spectator sports paid an average wage of $33,929 in 2012 compared to just $19,413 in the hotel sector and $14,443 for restaurants and bars."
On Page 18 he again writes:

"Greensboro has experienced a four year decline in the share of all jobs attributable to this sector, declining from a five year high of 12.8% in 2009 to 10.7% of all jobs in 2012. The ongoing efforts to build the Tanger Performing Arts Center and related hotel development may well remedy this problem. That said, this sector generated the lowest average wage rates of any major industry group included in this Report (i.e., $15,395)."
But nowhere in his 22 page report does Dr Keith G Debbage back up his claims that the  "Tanger Performing Arts Center and related hotel development may well remedy this problem."  No where does he offer a single shred of evidence, not a single comment or even an opinion to support his opinion. One might think the professor a talking parrot constantly repeating the same words with no idea as to their meanings. Having never met Dr Debbage I don't know but I can't help but ask, does Keith Debbage have plumage?

Three times in the course of 22 pages, Debbage pitches  the Tanger Performing Arts Center and related hotel development as a solution to the problem of arts and entertainment/accommodation and food industry generating the lowest average wages of all the major industry groupings. Well here's a little secret, Dr Debbage: the arts and entertainment/accommodation and food industry generated the lowest average wages of all the major industry groupings every freaking where and that includes every city in America that already has a downtown performing arts center.

And one needs not be an economist working on the taxpayers' dime to know those sorts of jobs pay low wages. Debbage was paid by the Greensboro Partnership to do the report. The Greensboro Partnership is funded by the City of Greensboro.

Nor does Dr Debbage take into account reports by the North Carolina Justice Center that indicate an increase in low wage jobs such as those in the arts and entertainment/accommodation and food industry actually increase unemployment overall and lead to a worsening of local economic conditions in the long term.

But then as W.E. Heasley wrote:
"...Debbage is a technocrat."

Apparently not a very good technocrat, I might add.

And of course Dr Debbage would never acknowledge that the real solution to problems in the arts and entertainment/accommodation and food industry is in reality, a regrowth and rebuilding of manufacturing and other key industries that put tangible real goods with lasting value in consumers hands. On no, he'd actually have to put the horse in front of the cart to do that.

 Please continue reading Greensboro State of the City 2014: Part 4