A discussion of the new trade theory in the context of the US economy

There are a lot of ideas to go around, and I'm not inclined to argue that American cities are "vulnerable" in the sense that Silicon Valley is on the verge of evaporation and reconstitution in India. At the same time, it's clear that agglomeration is important in these industries and that there are increasing returns to scale. So in the end, Mr Smith's policy recommendations are the right ones; economic success now depends on loosening immigration rules, making it easy to build in cities, in part by investing in the infrastructure that supports them, and continuing to support research and education.

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