In my hometown, a new economic order may be emerging on an empty piece of land. Growing up in Syracuse, New York in the early 2000s had its highlights: sledding after a blizzard, attending minor-league baseball games, and catching glimpses of Syracuse University basketball players at Wegmans. However, it was apparent that the area’s best days were becoming a thing of the past. Major employers continuously left the region in search of cheaper labor and foreign opportunities. For young people like myself, the message was clear: if we wanted success and security, we had to leave. And many of us did, leaving our homes and families behind for the bustling cities where lucrative jobs awaited (in my case, New York City).
This story of decline and exodus was a common one in various cities and towns across the country during those years. It was largely driven by policy choices that prioritized job relocation based solely on market forces. As a result, growth became concentrated in a few major cities, while regions like Central New York and much of the Midwest faced stagnation or worse. This created resentment among those who felt abandoned, providing fertile ground for the rise of Donald Trump and his politics of resentment.
But perhaps this narrative is starting to change. In October, semiconductor manufacturer Micron Technology announced plans to invest $100 billion over the next 20 years in a new plant just outside Syracuse. This unprecedented amount of money would have a transformative impact on the region. The deal was made possible by the CHIPS and Science Act, a bipartisan $50 billion investment in American-made semiconductor chips passed last summer. This act represents the Biden administration’s recognition that geography plays a crucial role in fostering growth and opportunity. If successful in places like Syracuse, this approach could reshape the American economic and political landscape.
Syracuse has a history of being shaped by government policy. In the 19th century, leaders like Henry Clay advocated for an “American System” that supported domestic industries and built vital infrastructure. The Erie Canal, which connected Albany to Buffalo, was a shining example of this system and brought prosperity to Syracuse. The city became a thriving manufacturing hub, producing a range of goods from automotive gears to typewriters. The name of my hometown and Micron’s new base, Clay, New York, pays tribute to this heritage.
During the Great Depression, Syracuse benefitted from New Deal policies that focused on regional development. Governor Franklin D. Roosevelt’s legislation in 1931 created jobs for hundreds of residents by building a park and parkway along Onondaga Lake. This approach was later expanded at the national level through programs like the Works Progress Administration and the Tennessee Valley Authority. In the 1940s, the newly constructed parkway facilitated transportation to General Electric’s Electronics Park, a massive campus that employed thousands of workers and became a cornerstone of the local economy.
However, the 1970s brought challenges as competitors in Europe and Japan began to catch up to American industry. The rise of laissez-faire economics and inflation further strained Syracuse’s industrial sector. Policy makers prioritized national growth and low consumer prices, paying little attention to where the growth occurred or goods were produced. This resulted in job shifts and outsourcing, including the relocation of production to China after its admission to the World Trade Organization in 2001. Carrier, a prominent employer in Syracuse, moved its operations overseas, citing significantly lower production costs in Asia.
Deindustrialization had a lasting impact on Syracuse, leaving a void that has been difficult to fill. Private-sector employment in the area has decreased since 2001, and the city has experienced population decline and high child poverty rates. The once-thriving Electronics Park now sits with mostly empty parking lots, a stark contrast to its former glory. Carrier’s name continued to adorn the university’s sports dome, even though the company stopped manufacturing air conditioners in Syracuse two decades ago.
The economic inequality that has surged since the 1980s not only created a vertical divide between top earners and everyone else but also profoundly affected regions in a horizontal manner. Mergers and acquisitions led to regional businesses being absorbed by multinational corporations headquartered in coastal cities, leaving the Midwest in a prolonged recession. Meanwhile, the cities experiencing job growth became increasingly unaffordable to live in. The COVID-19 pandemic further exposed the vulnerabilities of place-agnostic economics, as disruptions in one area could reverberate across entire economies through disrupted supply chains.
In response to these challenges, President Joe Biden’s administration has embraced industrial policy as a means of supporting specific domestic industries. Legislation has been passed to invest in semiconductors, clean energy, and infrastructure, with a focus on revitalizing areas that have been left behind. The administration aims to invest in places and communities that face the risk of further decline. These efforts are expected to bring about a reversal of decades-long geographic redistribution. The CHIPS Act, in particular, has been instrumental in attracting Micron’s investment in Syracuse.
The impact of the CHIPS Act and other place-based programs in Biden’s laws is already becoming apparent. Micron’s chief executive recognizes the significance of the act in enabling their investment in Syracuse. The project is estimated to create 9,000 high-paying jobs directly, generate an additional 40,000 jobs in local companies, and generate $17 billion in state tax revenue during its 20-year span. Micron has also committed to funding local child care, achieving carbon neutrality by 2050, and making other community investments. These commitments were mandated by the state of New York to secure subsidies and avoid the backlash experienced with the failed Amazon HQ2 deal in Queens.
While some in Syracuse remain cautiously optimistic about Micron’s promises, signs of hope are already emerging. The county is preparing for a surge in residential and commercial development, public transit is being expanded, educational institutions are adapting their programs to meet the demand for a semiconductor workforce, and local businesses are getting involved by creating semiconductor-themed products.
President Biden, a Syracuse University law school alum, has been an enthusiastic supporter of the Micron project. Successful place-based economic policies could prove to be politically advantageous for him and the Democratic Party, as they have seen strong support from economically vibrant regions. If more areas experience growth and revitalization, the electoral map could undergo a transformation for the party.
In the end, the success of Bidenomics will be measured by its ability to deliver real change for the people and places that have suffered under previous economic policies. The investment in Syracuse represents a step in the right direction, demonstrating the potential impact of strategic government intervention in neglected areas. By prioritizing geography and fostering growth in regions that have been left behind, Biden’s administration seeks to create a more inclusive and equitable American economy.
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