Sunday, July 26, 2009

Super Steel

Milwaukee has a company - Super Steel - that actually produces train cars. We are one of a handful of cities that do not have, nor are we planning, a rail system. We are in tough economic times with a need for jobs and catalytic economic projects. Why are we not fostering and promoting this local comparative advantage (Super Steel)? Super Steel should be building train cars for a regional light-rail network as we speak. This would lead to clustering and agglomeration economies (peripheral activities/businesses connected to this project). It would lead to increased employment and establish Milwaukee's future viability for business and residents. This is a perfect stimulus project with job, infrastructure, and long-term transit, business, and regional implications. What have we been waiting for?

For Further Reading:
The Magnitude and Causes of Agglomeration Economies
State to Purchase Two Trains From Spanish Company Locating Here
State Touts No-bid Deal With Spanish Firm
Transport Investment, Agglomeration and Urban Productivity

Super Steel Could Build Trains Without Jeopardizing Contracts

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