Posted inPhoenix

It’s morning (after) in Glendale

News item: Glendale is stuck figuring out, in a shifting economic landscape, how to deal with roughly $500 million in borrowing for the sports district. By the time Glendale pays interest over three decades, the city will have spent close to $1 billion.

The common cover story, bought into by the Republic, goes like this: "Glendale had been on track to stunningly remake itself into a sports mecca with four major sports: hockey, baseball, basketball and football. Then the economy collapsed." In fact, Glendale epitomizes everything nearly wrong with metro Phoenix economic development. It was not so much a victim of the Great Recession as it invited a reckoning no matter that happened to the national economy. That's why, aside from its dark comedic value, this disaster is worth dwelling upon.

This was once one of the sweet and distinct farm towns of the Salt River Valley. It depended on a diverse array of crops grown in the surrounding fields, which were then packed in town and loaded on the Santa Fe Railway for shipment back east (a passenger train stopped daily, too). Other businesses supported the ag sector with supplies and equipment. The railroad itself had a large icing dock in the days before mechanical refrigerator cars. Nearly every retailer was local. The population was about 15,700 in 1960. This was the most scalable and sustainable it would ever be. Then it was absorbed by the Growth Machine and became just another Phoenix suburb with all the attendant drawbacks.

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Posted inPhoenix

More beer saves Arizona economy

Today's installment of the Phoenix Laff Riot begins with Tuesday's truly pathetic story in the Arizona Republic headlined "Big game proves a winner for state economy." Ordered up, no doubt, by the "say something positive about the community" bosses, here's the gist:

Consumers who had been watching their pennies splurged in
celebration of the Arizona Cardinals in the Super Bowl, giving the
state's ailing economy an unexpected shot in the arm. Fans bought hats, T-shirts, televisions, snack trays and beer. They
partied at sports bars and in homes around the state, cheering on the
Cardinals.

Let's apply a little critical thinking not allowed in news meetings. The story has no data to back up this claim. And even if people spent more on beer and chips for the game, it simply changes the shape of the water balloon. In other words, that consumer spending was diverted from other areas; the Big Game didn't represent an increase in purchasing power or living standards. That would require, oh, a diverse economy with well-paid jobs and an educated workforce. In any event, even Super Bowl economic impact reports by real economists are always suspect, requiring a skepticism that was once required of journalists.

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Posted inPhoenix

Super Bowl of steaming dog poo

Pardon me if I'm not excited about the Arizona Cardinals going to the Super Bowl. This is a team deliberately from nowhere. It doesn't have the city's name. This is…
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