Jobs Are Up, but Is the U.S. Competitive Enough?

Oct. 07, 2007 -- This week, Opportunity 08 takes a closer look at how the next president can focus on integrated regional economies and help produce the talent needed to keep the United States competitive in the 21st century.

Last week, the Labor Department reported that employment rates rose in August and September. President Bush reacted by saying, "It's an indicator that this economy is a vibrant and strong economy," and gave the nation's economic health a thumbs up.

But policy experts say there's reason to worry. National prosperity is driven by regional economics and in this new age of globalization and knowledge-based economies the outlook for many regions isn't good.

John Austin leads the Great Lakes Economic Initiative at the Brookings Institution — focusing on the 12-state region that reaches from Buffalo, N.Y., and Pittsburgh in the east, to Minneapolis-St. Paul and St. Louis in the west.

"America's Great Lakes region is losing ground rapidly," said Austin. "Some parts of the region, such as Chicago and the Twin Cities, are thriving in the knowledge economy, while other communities, like Buffalo, Detroit, Cleveland and Milwaukee, are losing jobs, talent and economic vitality."

Austin and other experts say presidential candidates' investment strategies should seek to nurture regional economies.

"At this critical moment, federal investment in U.S. competitiveness lacks a regional focus," said Bruce Katz, vice president and director of the Metropolitan Policy Program at the Brookings Institution. "The next president should recognize the Great Lakes region's national economic importance and adopt policies that speed its economic transition and growth."