Atlanta Economics

It’s impossible to describe the ups and downs of Atlanta economics without a history lesson covering the growth of Atlanta from 3 million to 6 million residents between 1980 and 2004 and its decline back to 4 million residents.   This spike in residents came as “high tech” companies built offices and factories in Atlanta’s suburban office parks and receded as companies moved off-shore to other countries.  These were companies headquartered elsewhere, but recognized Atlanta as a good place to go.  Atlanta had good weather, affordable housing and Georgia Tech.  The products produced by these “high tech” companies were both in high demand and extremely useful.

The elements missing in most Atlanta economy media accounts are product demand and usefulness.  Atlanta boomed in the 1980s, largely due to the introduction of the Personal Computer and the beginning of the telecom rebuild.  Several R&D projects enabled engineers to make the most of these phenomena.  These included digital signal processing, microprocessor development, fiber optics, RF and Laser technology, manufacturing automation, the Ethernet and the internet.  The goal was “smaller, cheaper, faster and reliable”. 
Our defense industry advances took place during the same timeframe.  DARPA funded unmanned aircraft technology, DOD funded stealth aircraft, radar jammers and un-jammers, finding radar for missiles, laser targeting and high powered laser and electromagnetic pulse weapons development. The amount of engineering and manufacturing work required to fuel this leap in capability was similar to Henry Ford’s production line.  Ford’s ability to produce enough automobiles enabled ordinary citizens to purchase them.  American productivity got the advantages of more rapid and accessible transportation.  

The computer revolution would not have been possible without the recognition that these devices needed to be affordable and useful to businesses and regular consumers.  The increases the PC allowed in business productivity were huge and the prediction that every home would have a PC came true.

The telecom rebuild was predictable.  Its current equipment needed to be upgraded. Telecom needed to develop its equipment to be able to support mobile phones.

Goodbye Jobs

NAFTA, passed in 1993 encouraged companies to move overseas and they did.  In 2000 and again in 2004, many companies closed their Atlanta operations and moved back to their headquarter cities. Many more moved operations to other countries.  Engineers migrated from company to company as this exodus progressed.  One of the last engineering tasks remaining was to expand cell phones to take pictures and videos and serve as a pocket PC for messages.  They also automated the test process for this cell phone.  Then they closed. 

Current Opportunities Stymied

Our electric grid is in need of upgrading, but the alternative green energy movement is meddling and slowing down the progress.  At the same time, fracking has enabled us to become energy independent, but the same group is slowing down the process.  Despite government obstructions, oil and gas production are on the rise and States with these resources are reporting full employment.  Obama wants to shut down hydro and coal-fired electric power plants, where 70% of our electricity comes from.

Atlanta’s Future

Unless manufacturing returns to the U.S. and until investors are ready to gather up and analyze current R&D projects for future applications, we will languish.  The answers to returning prosperity include rolling back job-killing regulations and taxes.  Reports of “more jobs” are anemic.

Norb Leahy, Dunwoody GA Tea Party Leader