The Formula for Economic Growth on Main Street America (ASPA Series in Public Administration and Public Policy)

188 Pages·2009·1.944 MB·English

by  Gerald L. Gordon

Endorsements
“Local economic growth requires true leadership. Dr. Gordon’s 25
years of experience in Fairfax County have yielded the kinds of valu-
able insights that can benefit other communities.”
Steven L. Davis
Chairman, Fairfax County Economic Development Authority and
Former Senior Executive, Exxon Mobil Corporation
“As the Congressman from Virginia’s 11th Congressional District, I
was aware that the economic growth of the entire Washington, D.C.,
region, as well as that of the Commonwealth of Virginia, was largely
dependent upon what happened in Fairfax County, Virginia.”
The Honorable Thomas M. Davis III
Former United States Congressman
“Through a Fulbright grant for Senior Scholars, Dr. Gordon has
made invaluable contributions to the economic planning of the North
Highlands region of Scotland. His counsel to a community that is
about to lose its primary employer and financial resource has been com-
prehensive, insightful, and motivational.”
Lord Robert MacLennan
Member, British House of Lords
“Dr. Gordon has provided a comprehensive, analytic and clear look at
the importance and complexity of economic growth. His book provides
a necessary framework and concrete examples. He nicely separates facts
from opinions, and delineates both the subjective and objective aspects
of economic growth. His style makes this an important read for both
the expert and the student.”
Dr. Alan Merten
President, George Mason University, Fairfax, Virginia
“Dr. Gordon’s service as an adjunct professor at the Catholic University
of America gives our students an opportunity to hear from an acknowl-
edged expert about how local economies grow and develop. This book
will be a valuable addition to the literature in the field because it was
written by an accomplished academic and a leader in the economic
development profession.”
Dr. Phillip Henderson
Chairman, Department of Politics, Catholic University of America,
Washington, D.C.
“Fairfax County and the southeast of England have established a part-
nership that has been beneficial to both sides of the Atlantic. Fairfax
County is in the forefront of international economic development.”
Michael Dewick
Head of International Business—Americas, South East England
Development Agency
The Formula For
economic GrowTh on
main STreeT america
American Society for Public Administration
Book Series on Public Administration & Public Policy
Evan M. Berman, Ph.D.
Editor-in-Chief
Mission: Throughout its history, ASPA has sought to be true to its founding prin-
ciples of promoting scholarship and professionalism within the public service. The
ASPA Book Series on Public Administration and Public Policy publishes books that
increase national and international interest for public administration and which dis-
cuss practical or cutting edge topics in engaging ways of interest to practitioners,
policy-makers, and those concerned with bringing scholarship to the practice of pub-
lic administration.
The Formula for Economic Growth on Main Street America, Gerald L. Gordon
The New Face of Government: How Public Managers Are Forging a New
Approach to Governance, David E. McNabb
The Facilitative Leader in City Hall: Reexamining the Scope
and Contributions, James H. Svara
American Society for Public Administration
Series in Public Administration and Public Policy
The Formula For
economic GrowTh on
main STreeT america
Gerald l. Gordon
CRC Press
Taylor & Francis Group
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Library of Congress Cataloging‑in‑Publication Data
Gordon, Gerald L.
The formula for economic growth on Main Street America / Gerald L. Gordon.
p. cm. -- (American Society for Public Administration book series on public
administration & public policy)
Includes bibliographical references and index.
ISBN 978-1-4200-9389-6 (hardcover : alk. paper)
1. Economic development--United States. 2. Community development--United States.
3. Local government--United States. I. Title. II. Series.
HC110.E44G67 2010
338.973--dc22 2009022514
Visit the Taylor & Francis Web site at
http://www.taylorandfrancis.com
and the CRC Press Web site at
http://www.crcpress.com
This book is dedicated to my wife and family as well as to the men
and women of the staff and commission of the Fairfax County
Economic Development Authority. Their collective wisdom,
effectiveness, and dedication are constant sources of inspiration.

Contents
List of Figures .............................................................................................xiii
List of Tables .................................................................................................xv
Preface .........................................................................................................xvii
About the Author .........................................................................................xxi
1 Defining Economic Growth in a Changing Business Climate ...............1
1.1 Introduction ......................................................................................1
1.2 Economic Growth in Post–World War II America ............................2
1.3 Changing Views of Community Economic Growth through
the 1970s, 1980s, and 1990s ..............................................................9
1.4 Births and Deaths of Companies, Industries, and Regions ..............12
1.5 Winners and Losers: Communities at the End of the Twentieth
Century ...........................................................................................13
1.6 Twenty-First Century Growth: Do Communities Compete in a
Zero-Sum Game? ............................................................................14
1.7 A Working Definition of Local Economic Growth ..........................16
1.8 The Relevance of Economic Growth to Today’s Communities
and Leadership ................................................................................17
1.9 Concluding Thoughts ......................................................................18
Notes .........................................................................................................19
2 Viewing Economic Growth as Part of a Comprehensive
Community Strategy ............................................................................21
2.1 Introduction ....................................................................................21
2.2 Static Growth: If Communities Do Not Grow, Do They Die? ........22
2.3 Building Economic Growth into the Master Plan ...........................24
2.4 Theoretical Foundations for Local Economic Growth .....................26
2.5 Public Policies for Economic Growth: Dos and Don’t-Dos ..............29
2.5.1 Tax Policies .........................................................................32
2.5.2 Incentive Programs .............................................................32
ix