The "Greener Pastures" of Market Flexibility

With the advent of NIMBYism and protected knowledge sources, we sometimes forget how earlier forms of market flexibility made it easier for individuals to move more freely from place to place. How might we recreate "greener pastures" for new economic opportunities, especially for those with the greatest incentive to put them to good use?

The mid twentieth century U.S. economy was a time of considerable market flexibility, which helps explain some of the nostalgia surrounding this period. Clearly, its tradable sector dominance also contributed to social mobility. What were relatively flexible organizational patterns and divisions of labour in particular, helped local environments adapt to changing economic and social circumstance. Small business production was extensive, and it made feasible a wide range of wealth creation diversity. Even the smallest and most isolated of communities were often able to create their own roles, in what was an open and dynamic domestic economy.

Chances are, today's sticky domestic markets are a bigger problem for social mobility than is generally recognized. While social mobility is more often described as realizing income gains over time, our ability to move about freely as needed without accruing excessive costs or personal risks, is likely just as important. How much social mobility is negatively impacted, by the rigid requirements of non tradable sectors? Especially since these sectors tend to set the rules for economic participation in general. Even though tradable sector factory closings are an obvious hardship, citizens of hard hit regions face additional long term difficulties, when they try to start over in new environs only to find the costs of economic engagement beyond their reach. Unfortunately, non tradable sector rigidity is shutting off too many economic opportunities in domestic markets.

An interesting way to think about these issues, is the nature of risk taking in light of current market barriers. How so? Presently it is not uncommon, to hear that people aren't as willing to invest or take risks as was once the case. Yet this supposed lack of desire to invest further for continued economic progress, links economic stagnation with an assumed unwillingness on everyone's part. But why expect millions who are basically satisfied with their lives, to be the primary risk takers in society?

Plenty of individuals who are willing to assume risks and invest in new possibilities, aren't being noticed. Paradoxically, many who seek greener pastures are derided for doing so. Supposedly they aren't the ones to be pursuing better realities! Perhaps instead of expecting the already successful to do the heavy lifting of innovation and furthering progress, we might ask them instead to have more patience with others who aren't quite as content with present circumstance. We might discover how people who are content with their gains, could become more willing to make room for others who wish to create successes in their lives as well. In many instances, it simply isn't necessary for everyone to struggle with competing platforms and goals in the same physical locations. No one need force extensive market changes on those who understandably resist, when new spaces could be freed instead, for greener pastures of economic opportunity.