Gordon L. Weil
In a remote work-from-home economy,
nobody is more remote than others.
Maybe that's good news for Maine, which
has been penalized by its relatively remote location. If remote work
takes off, as seems highly possible, Maine might see its competitive
disadvantage greatly reduced.
It is too soon to know how the remote
economy will develop, but the crisis provides an opportunity to
promote it. The so-called New Economy might not equal the Industrial
Revolution, but it could mark a historic change in economic life.
Two seemingly conflicting interests
exist. Widespread concern about public health and personal risk has
led to governments and individuals to reduce normal economic
activity. At the same time, many people are anxious to return
rapidly to their former life as soon as possible. The need to
generate income through economic activity is undeniable.
Many states, including Maine, imposed
tough protective measures, and now all states have begun loosening
them. Governors have two goals: acquiescing in demands from some
residents and allowing as much economic activity as seems prudent.
Some leaders, apparently including
President Trump, motivated by unrealistic optimism and possible
political advantage, advocate virtually complete relaxation of
protective measures – opening the economy.
In states where relaxing protection has
meant significant reopening, the number of cases has increased. The
increase in Maine cases may be driven by better case reporting or
outbreaks in group homes, but the effect of opening probably counts
as well. The message is clearly that to reopen requires a new
approach.
Businesses themselves have begun to
move to the new economy. Companies like Facebook, Twitter and
Shopify have announced that, after the crisis, they will continue to
have many employees work from home.
The Wall Street Journal notes that many
workers want to get back to the office, “but there will certainly
be a growing class of workers who will never set foot in an office
again, a profound change with unknown implications.”
Much work, even in an office, is
carried out independently, but not all. Nobody will manufacture cars
without people working together in a factory. Also, creativity can
be stimulated by occasional face-to-face meetings.
The issue of social contact in not
fully understood. Some observers claim that people need social
contact, while other claim that the famous water cooler conversations
are a waste of time. Zoom seems to be proving that electronics can
go a long way as a face-to-face social substitute.
In the end, if many people worry about the health risks of viruses,
their reluctance to return to crowded work spaces may be the key
element in promoting remote work. More people will both work and
shop from home.
The move away from the central workplace is certain to improve air
quality and reduce wasteful commuting. Businesses' costs of
operation can be reduced.
Facing these obvious advantages is the
natural unwillingness to change. Excuses will be found to resist it.
Remember that people threw their wooden shoes, called sabots, into
the machine gears to try to undermine the Industrial Revolution. The
result: sabotage, but not success.
Federal and state governments can
promote remote work to stimulate change as the economy emerges from
the economic doldrums caused by the coronavirus.
Instead of merely sending survival
money to unemployed Americans, Congress could adopt a modified
version of the European approach. Many governments there subsidize
companies to retain employees on the payroll, keeping down
unemployment payments. The twist would be that this kind of aid
would go only to companies creating remote work opportunities. This
would transform public assistance into economic development.
With the economy essentially restarting
using a significantly new design, Maine economic development could
suffer less from the state's remote location.
The state could seize what is called
“first mover advantage” and, ahead of others, promote itself as
the prime “remote work state.” The quality of life is well
known and could be promoted as the ideal place for working from home.
More young people could stay in the state or move to Maine.
Of course, the state would have come to
terms with upgrading its electronic network to high-speed
communication. It could also offer incentives to businesses that
could assist remote work across the country, including by setting up
training programs at the community colleges. Education could add a
focus on remote work management.
Major national operations would no
longer have to bypass Maine because of its location. Some will be
looking to move operations from abroad back to the US. With lower
costs than many other parts of the country, Maine could be
attractive, especially if it gave itself a distinct economic
identity, linked to the new economy.
Remote work is an inevitable part of
the American economic future. It's a part where Maine can be a key
player.