Where taxes are low, jobs are plentiful and schools are starved
Aug 31st 2013 | SALT LAKE CITY |From the print edition
FEW things excite Gary Herbert, the Republican governor of Utah, more than trashing his own line of work. “Every sector is growing here except for one,” he says triumphantly. “You know which? Government!” He is right; private-sector employment in Utah grew by 4.5% in the year to July. Only the public sector shrank.
Unlike other states that have been piling on jobs, such as California, Utah is not merely rebounding; at its January 2010 peak unemployment was still well below the national average (see chart). Today it stands at 4.6%, the fifth-lowest rate in the country. And the diversity of Utah’s recovery, sniffs Mr Herbert, contrasts with the energy-fuelled boom of other low-unemployment states, like North Dakota.
Success has bred confidence; local boosters speak of the “Wall Street of the West” in Salt Lake City, anchored by a big Goldman Sachs office, or the “Silicon Slopes” around Lehi, half an hour south, where technology firms have begun to cluster. Google chose nearby Provo, one of America’s fastest-growing cities, as one of three pilot sites for its fibre-optic broadband network. Employers like Utah’s skilled workers (particularly young Mormons who learn languages on missions abroad) and its enterprising universities.
Even the state motto is “industry”
The handsome 1,100-worker Lehi campus built by Adobe, a digital publishing and marketing company, is a particular point of pride. Eye-catching murals adorn the walls; employees relax in breakout rooms with pool tables and vintage video games. Brad Rencher, an Adobe executive, says myths have been bust about Utah; potential recruits who once feared bad coffee and uptight Mormons now come for the hiking and skiing. Four miles away Stan Lockhart at IM Flash, a chipmaker, enthuses that the state government knows what business needs.
Indeed, Utah and its cities regularly top national rankings of business-friendliness. Officials gush about low taxes, wages and energy costs, light regulations and enterprising spirits. All this, along with some generous tax sweeteners, has seduced the likes of Boeing, Procter & Gamble and eBay into the state. “We really value capitalism,” says Spencer Eccles, head of the governor’s economic development office.
Yet it is a peculiarly cuddly form of capitalism. Income inequality is lower in Utah than any other state, and a recent Harvard/Berkeley study found that economic mobility was higher in Salt Lake City than in any other big American city. “People here aren’t trying to be Donald Trump,” says Stephen Kroes, president of the Utah Foundation, a think-tank. Thanks partly to the Mormon influence, Utahns volunteer more than anyone else.
Being small and homogenous probably helps; but that is changing. Between 2000 and 2010 Utah’s Latino population grew three times quicker than the state overall. They are now 13% of Utahns, and some areas are majority-minority. Some of Utah’s schools are struggling to cope: the high-school graduation rate among minorities is dreadful. Skeletal education budgets do not help; per-pupil spending has been lower than in any other state since 1988, according to the Utah Foundation.
Utah’s sky-high birth rate helps explain that; it must find an extra $75m a year just to keep up with swelling school rolls. But in neighbouring Colorado and Nevada, both swing states with higher Latino concentrations, lawmakers have seriously debated raising taxes to fund schools. In one-party Utah, by contrast, politicians with ambition speak of taxes only when they want to lower them. (Earlier this year a Republican state senator violated that rule and found himself all over the front pages.)
Businesses like the predictability of stable government, but there may be losers, too. In budget battles, says James Wood at the University of Utah, transport usually beats education. The state’s schoolchildren perform better than funding levels alone would predict. Still, Mr Herbert acknowledges the need for more money, so long as it comes from the proceeds of growth rather than new taxes.
Utah has enjoyed good luck as well as strong leadership. Like its neighbours, it has benefited from natural-resource wealth, plenty of cheap land and proximity to big population centres in California; unlike them, its biggest demographic challenge has been accommodating toddlers rather than minorities. That is changing, and Utah’s leaders will have to adapt.
Featured Guest Review: Niall Ferguson on Coming Apart
Niall Ferguson is professor of history at Harvard, a fellow of the Hoover Institution and the author of numerous books, most recently Civilization: The West and the Rest and The Ascent of Money: A Financial History of the World.
Since the advent of "Occupy Wall Street," there has been a tendency to assume that only the Left worries about inequality in America. Charles Murray's Coming Apart shows that conservatives, too, need to be concerned.
This is an immensely important and utterly gripping book. It deserves to be as much talked about as Murray's most controversial work (co-authored with Richard J. Herrnstein), The Bell Curve. Quite unjustly, that book was anathematized as "racist" because it pointed out that, on average, African-Americans had lower IQ scores than white Americans.
No doubt the same politically correct critics will complain about this book, because it is almost entirely devoted to the problem of social polarization within "white America." They will have to ignore one of Coming Apart's most surprising findings: that race is not a significant determinant of social polarization in today's America. It is class that really matters.
Murray meticulously chronicles and measures the emergence of two wholly distinct classes: a new upper class, first identified in The Bell Curve as "the cognitive elite," and a new "lower class," which he is too polite to give a name. And he vividly localizes his argument by imagining two emblematic communities: Belmont, where everyone has at least one college degree, and Fishtown, where no one has any. (Read: Tonyville and Trashtown.)
The key point is that the four great social trends of the past half-century--the decline of marriage, of the work ethic, of respect for the law and of religious observance--have affected Fishtown much more than Belmont. As a consequence, the traditional bonds of civil society have atrophied in Fishtown. And that, Murray concludes, is why people there are so very unhappy--and dysfunctional.
What can be done to reunite these two classes? Murray is dismissive of the standard liberal prescription of higher taxes on the rich and higher spending on the poor. As he points out, there could hardly be a worse moment to try to import the European welfare state, just as that system suffers fiscal collapse in its continent of origin.
What the country needs is not an even larger federal government but a kind of civic Great Awakening--a return to the republic's original foundations of family, vocation, community, and faith.
Coming Apart is a model of rigorous sociological inquiry, yet it is also highly readable. After the chronic incoherence of Occupy Wall Street, it comes as a blessed relief. Every American should read it. Too bad only the cognitive elite will. 作者: 索伦 时间: 2013-10-10 12:43