Streetcar, Skyscraper, Return of the Builders!

Nostalgia sounds nice, but COVID makes it impractical

You have to love Mutual of Omaha for pushing new ideas. The Midtown Complex is beautiful and the new ideas for a skyscraper and streetcar sound so nice. How can you resist? It even receives the glow of some bi-partisan support.

However, the present reality of economics will eventually erode support for these ideas. I try to follow economic trends and where money and ideas are flowing. Years ago, I expected the internet to dominate our economy quickly but it was very slow and stubborn to do so. With the increasing use of smartphones and growing sophistication of the phone users, these little black boxes began to redefine how we interact with each other and how we buy things. Yet, Iphone users had trouble shutting off notifications, and still have troubles sending attachments to an email.

But COVID came, and everything was turned over. Many work from home now. Plenty of people order food to be delivered, so why go out? Order online and save some time.

Furthermore, since urban areas are subject to mask mandates, riots, random vandalism, curfews, and other restrictions, while events are canceled, why not just move to rural areas? Merely speaking to the Douglas County Board or City Council requires security to inspect the belt of your pants. How hospitable, NOT! There is a slow but growing migration from large urban areas to avoid the problems of a big city.

Let us start with the streetcar. The main argument goes all the way back to when railroads were first being put into place. Put down the track, and people will come. Same idea is being used to sell street cars. However, street cars were popular in the past where there was a factory economy where workers had to show up at the same time at the same place to produce a product. But we now live in a digital economy with smartphones and the internet and we let the robots do the work. The economy is 24 hours a day, seven days a week.

The biggest benefactors of the streetcars will be the students but since students do not have much money to spend, they will not spur enough economic growth for areas around the street car track to justify it. Local economists and economic groups will debate this and throw out studies to the public, but much of the information will be pre-pandemic and not applicable. I suspect many students will be taking courses online and have no interest at all in visiting Omaha. Realistically, however, the City probably cannot resist the Federal money provided by the Biden/Bacon infrastructure bill.  The streetcar will be built, and a few years later, people will be upset about the costs of running it and the cost of repairs. Also, what about the carbon foot print of the project?

So what of the skyscraper? Sounds good, right? Here is the problem. I already hear complaints from people who work in downtown Omaha. They have to drive all the way downtown, and pay a high parking charge. Not fun. I suggest Mutual of Omaha parcel the project out. Put 60 percent of the building downtown and 40 percent out west, or perhaps 40 percent downtown and two places of 30 percent each somewhere else. Realistically, people know if they can work at home, they save on commute time, and can complete home choirs. The Chase Corporation understands this as they opened small offices across the country and help people with bank accounts and financing. They know, if the costs go too high in any area, they can quickly adjust. This is what causes me concern with building a brand new superstructure in downtown Omaha.

The biggest impact of the digital economy will actually end skyscrapers and parking lots. In the near future, you will walk up to a transport pole, plug in your account number and destination and be provided a list of transports. You will select one and wait a few minutes for it to arrive. You will step into a vehicle with no driver. It will ask you if you want it to play your favorite music playlist or provide the news. From there, you are on your journey. No parking lot, and hopefully a short commute to wherever you are going. You will be dropped off and the vehicle will go to its next customer.