The "region" here is mainly based on the state. In the United States, local governments are more "grounded" than the federal government, and their various decisions and policies are often closer to the needs of the local people. These regional policies adapted to local conditions enable them to improve employment, promote innovation, and consolidate the economic development of the United States from the grassroots.
Regional economy in the United States
In the United States, local governments have a lot of power. For example, there are many differences between the federal laws and the local laws of each state. On some sensitive issues, each state in the United States has different laws and regulations. In terms of tax, the federal tax and the tax of each state are also distinguished. The individual income tax rate of each state is different. Seven states do not collect individual income tax at all, but the individual income tax rate of some states is as high as 13.3%. This gives each state in the United States a very high degree of political and economic freedom, but at the same time, there is always a sense of "going their own way" among the states in the United States.
For example, when Amazon's second headquarters is located, there are many times when different cities and regions in the same region submit multiple proposals. In the Greater Washington area, that is, the surrounding areas of the same city, there are as many as three different proposals - this is because Washington is not only a city, but also a special district, which borders Maryland and Virginia, so the three states submitted their own proposals separately. Because every state's governor and congressman has to bear the expectations of the voters in the region - to create local jobs and improve the state's economy.
There are not only political considerations but also the result of the uneven distribution of wealth among states in the United States. According to a report of Brookings Institution in 2017, half of the workers in the United States have not experienced the rise of pre tax wages since 1980; meanwhile, only 11 of the 100 metropolitan areas in the United States have experienced the recovery of employment rate, the increase of labor productivity and the rise of wages at the same time.
There seems to be a fault between California with Silicon Valley blessing and other neighboring states. Not surprisingly, most of the differences between states are related to geographical location, topography and industrial layout.
Because of this, some of the federal government's unified policies often do not benefit all States and regions equally, and sometimes may even have the opposite effect. At the beginning of this year, a member of the U.S. Federal Communications Commission (FCC) and the mayor of San Jose, California, launched a tug of war on the issue of laying 5g network: the FCC hopes that there will be unified regulations on the time, place and even price of the project, while the mayor has discussed a separate treaty with the wireless network provider according to the requirements of his own city. In this case, the local government's plan is obviously better.
Especially in the United States, the types of economy are more and more diverse, and the political situation is more and more complicated as trump competes with the democratic and Republican parties in Congress. Therefore, the states in the United States have become the units that can make the fastest response to any change in the market. They can control their own fiscal policies, and also let the state governments open their hands in attracting investment. Whether it's the battle of Amazon's second headquarters this year or the direct investment of some foreign capital, it's actually the ability of the state governments to test their tax preferences, talent investment, community and infrastructure construction. The flexible response of states actually increases the flexibility of the U.S. economy and enhances its ability to adapt to various challenges.
Innovative thinking of regional economy
One of the challenges, of course, is the impact of the rapid development of various new technologies on the economy. Many governors of the United States have put forward their own reform plans on this issue.
In the United States, every year, in addition to the president's state of the Union address, governors will also make relevant speeches on the state situation. In this year's governors' speeches, how to encourage innovation, apply new technologies to improve production efficiency, and prevent data leakage caused by technological innovation are hot topics. For example, New York governor Cuomo proposed to build an "innovative new York" network, bringing together academics, venture capitalists, business leaders, patent lawyers, entrepreneurs and experts to develop artificial intelligence and quantum computing in New York. The governor of Wisconsin, the central state, has also proposed the establishment of an innovation and entrepreneurship commission to serve and support small and medium-sized enterprises, seed funds and technology research and development in the state.
As for the governor of California, the technology center of the United States, he proposed to establish a "data dividend", that is, to get paid when personal data and data are used. At present, this is a leading idea in the world, and it is also a new manifestation that the top technology R & D groups in the United States attach importance to privacy and personal information.
In addition, some state governments specifically mentioned the development of 5g, and explicitly wrote relevant investment plans into the development blueprint of the new year. The Brookings Institution concluded that at least 18 governors have proposed significant new investments to help residents access broadband - only six in 2013. Among them, the governor of Missouri promised to use 250 million US dollars of federal and state funds to develop the broadband network in the state, while the governor of Connecticut also indicated that 5g would be included in the future investment plan for the city core.
In terms of promoting local scientific and technological progress, many states in the United States started with the reform within their own governments. The governor of Connecticut in the East proposed the establishment of the first fully electronic government; the governor of Ohio proposed a very inclusive "innovative Ohio" plan, including the electronic government operating system, the establishment of a public-private data sharing company, the improvement of the scope and standard of science and technology education, the establishment of employment platform, the provision of programming and business analysis training programs, and so on.
It's not just big tech states that value technology and innovation. The governor of Maine, which is famous for its fishing, timber and tourism industries, has also proposed to build a modern office environment, and help the residents of the state get in touch with and adapt to the wave of UAVs, driverless cars, 3D printing and other technologies.
This emphasis on technology transcends party and regional boundaries. Although the policies issued by different regions are different, their core is the same, which is to help local residents and enterprises adapt to the development of science and technology. The standard of adjusting measures to local conditions can also be shown here. California, which has a high degree of technology popularization, can pursue some more advanced concepts, while regions which are more inclined to the traditional economy are more progressive.
More than that, the Brookings Institution is in February this year Taking California as an example, a report in May suggested that the government should increase its support for some companies. Those companies that can provide more high-quality jobs, are conducive to trade, and attach importance to innovation can receive more attention and help from local governments. At the same time, local governments should also invest more in providing education and infrastructure construction.
In other words, in the United States, the development of regional economy can not be separated from the support of the government and the drive of enterprises. Only with the government's targeted policy encouragement, can each region better adjust the direction of development. The most "hot" areas in the United States, such as the bay area of California, where Silicon Valley is located, and the greater New York area in the west, are actually the product of the unique geographical location, educational resources and government policies. That's why, at that time, the location of Amazon's headquarters attracted the attention of the whole people: its location actually selected the sum of these factors and the "golden belt" of the United States.