The Megatrend That Stems From Three Others
Of the ten megatrends described by John Naisbitt, it is the North-South shift that is actually the result of three other trends. Naisbitt stated that it was "organically rooted" in three separate megatrends: the change from an industrial to an informa-tion society; the change from a national to a global economy; and the trend from centralization to decentralization. (p. 232.)
The change to an information society has had a pronounced negative impact on many industrial centers. Industrial operations were highly concentrated in the North and East -- for example, Detroit has been the heart of the auto industry, and Ohio has been a center for steel making. A decline in the relative importance of manufacturing as a component of the economy, led to job losses and falling levels of household incomes in these areas. However, "old" industry was so highly concentrated in these areas that there is a shortage of alternative jobs. With large numbers of people laid off or unemployed, local purchasing power falls and the entire local economy becomes depressed. By the early-1980s, people living in Northeast cities had the lowest living standards in the country, while per capita income was increasing most rapid-ly in the Southwest. (p. 242.) This created incentives for many to leave the North and head South or West in hope of a better life.
The changing nature of the economy also fueled the migration. In the emerging global economy, industrial production is shifting rapidly toward Third World nations. This has increased the compe-tition for major U.S. industries. Many competitors have lower labor costs and more modern and more efficient plant and equip-ment. The rise of these competitors only hastened the decline of U.S. manufacturing -- adding to the layoffs and plant closings that inspired people to move to greener pastures.
Decentralization has affected businesses and the work force. Wh...