The Main Thing:

A Healthy Community Is Like a Well-Toned Body (But With Fewer Sit-Ups)

Have you ever considered your city or town and thought, "This place needs to hit the gym?" I'm not talking about the people, although America is one of the most obese countries in the world (40 to 45% of all Americans are obese or considered overweight). I'm talking as if the city itself were a person and needed to tone up.

You're not alone. In this month's blog post, I consider a topic that's close to home for all of us-how communities are surprisingly similar to living organisms—some parts are nicely toned, while others might carry a little extra weight.

Just like you wouldn't run a marathon without training (or at least stretching... and maybe a pep talk), our communities urgently need conditioning. We'll examine how to identify community "open wounds" that need attention, why genuine passion trumps flashy motivation tactics, and why starting small is the secret sauce to sustainable change.

One can ignore the human body and the feedback it provides. We all know that we will get less mileage if we abuse it. Ignoring the sore foot or deep pain only causes potential future harm. The same goes for your community. It's a difficult task, but economic development professionals are best suited to do something about it.

​Read more here. ​

Focus on AI

Haste makes Waste

Northwestern professors Liz Gerber and Hatim Rahman offer a fresh perspective on incorporating AI into organizations by approaching it through the lens of product development rather than rushing to adopt technology out of anxiety or FOMO. 3 Questions to Ask Before Launching a New AI Tool (KelloggInsight) provides real-world examples and emphasizes the importance of clearly defining end goals and understanding how AI tools will integrate with existing human workflows before implementation.

Successful AI implementation requires careful consideration of human factors, including staff retraining and potential resistance to change. It also requires maintaining realistic expectations about implementation challenges and having systems in place to address inevitable setbacks.

Why this Matters -- Economic development professionals are increasingly involved in helping businesses and communities navigate technological transitions, particularly in the rapidly evolving landscape of artificial intelligence.

The article's product development approach provides a practical framework for understanding how Leaders can meaningfully integrate AI into existing business operations without disrupting productive workflows or alienating workers.

Furthermore, understanding the challenges and best practices of AI implementation can help economic developers better structure support programs and technical assistance for businesses in their communities, ultimately contributing to more resilient local economies.

The Willing Will Win

A compelling overview of AI's growing impact in government operations reveals how various cities and counties are successfully implementing artificial intelligence to enhance public services and improve efficiency. From Palm Beach County, Collier County, Indiana, and Arkansas, 4 ways local governments are harnessing AI to transform operations by Jeff Green (SmartCitiesDive) demonstrates how AI is changing everything from document processing to budgeting, resident communication, and field operations.

The implementations have yielded significant results, including millions in cost savings, improved resource allocation, and enhanced service delivery. The article acknowledges implementation challenges, including legacy system integration and privacy concerns, while advocating for a measured, phased approach to AI adoption that emphasizes stakeholder engagement and pilot testing.

Why this Matters -- This transformation of local government operations through AI has significant implications for economic development practitioners. Improved efficiency in government services can enhance a region's business climate by reducing bureaucratic friction and speeding up processes critical to business operations, such as permits and licenses.

The success stories provide economic developers with concrete examples to help build support for similar AI initiatives in their own communities, potentially leading to more efficient and responsive government services that can enhance economic competitiveness.

The Real Impact of AI

A research report from IDC reveals that business investment in artificial intelligence will generate $19.9 trillion in global economic impact through 2030, contributing to 3.5% of global GDP. The study projects that every dollar invested in AI will yield $4.60 in economic returns through direct, indirect, and induced effects across the global economy. The research addresses workforce concerns, indicating that 63% of employees expect some AI automation within two years, and only 3% anticipate complete job automation. Importantly, the study highlights the resilience of jobs requiring strong human social and emotional capabilities, reassuring workers in these roles. It also underscores the emergence of new AI-specific roles.

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​Why this Matters -- For economic development practitioners, this research underscores the urgent need for AI-focused economic development strategies. The projected economic multiplier effect ($4.60 return for every dollar invested) offers a compelling case for attracting AI-related businesses and supporting existing companies in their AI adoption efforts.

Economic developers can use these findings to develop targeted workforce programs that prepare their communities for emerging AI-related jobs while helping workers in potentially affected industries transition to roles that leverage human capabilities.

The research also suggests opportunities for economic developers to create programs that support local businesses, particularly small and medium-sized enterprises, to understand and implement AI solutions effectively to remain competitive in an increasingly AI-driven economy. This data can be particularly valuable when making the case for AI-focused infrastructure investments or developing incentive programs targeted at AI-related business attraction and retention.

Site Selection and AI: You've been wondering...Here's the Answer

Check out the Webcast on AI and site selection on Wednesday, March 19th at 12:00 ET. It is designed especially for economic developers.

Dean Whittaker is an economic development strategist and AI researcher with Whittaker Associates. He will discuss the use of AI in the Site Selection process, examining AI tools, their benefits, and their challenges. He will also cover the who, what, when, why, and how of using AI in the decision-making process of choosing a location for expansion, relocation, or relocation.

Here is what you will learn:

• How AI is driving better site selection decisions.
• The most powerful AI tools being used today.
• Who is leveraging AI for competitive advantage.
• Where AI is making the biggest impact in site selection.
• How economic development organizations (EDOs) can stay relevant in the AI era.

​To register, click here​

Sleep is taking over.

BREAKING: Wise Elders Declare State of Emergency as Consciousness Becomes Endangered Species

In a troubling development atop Mount Know-It-All, the Council of Wise Elders has been caught in an unprecedented narcolepsy epidemic. Sources close to the situation report these sagacious seniors are spontaneously slipping into slumber not only during their scheduled afternoon hibernation but also amid their most intellectually stimulating activities - including high-stakes crossword puzzles, artistically demanding paint-by-numbers masterpieces, and cutthroat cribbage tournaments.

Investigators have identified the root cause: a severe deficiency of challenging questions from the outside world. Without mental stimulation, these knowledge-hoarders are reduced to nursing a single Manhattan during their so-called “happy hour” (which, in a suspicious departure from tradition, begins at 4:00 PM, the geriatric-friendly time, and concludes precisely when Wheel of Fortune begins).

“We’ve tried everything,” whispered one concerned caretaker, pausing to gently remove a drool-soaked crossword puzzle from beneath a snoring elder’s face. “We’ve increased the difficulty of their word searches, hidden their reading glasses to create an element of challenge, and even replaced their regular denture adhesive with extra-strength. Nothing works. They need your questions like they need their prune juice – desperately and daily.”

When briefly conscious, the Wise Elders claim to possess the collective wisdom of the ages, including solutions to all economic development conundrums and the mysterious whereabouts of everyone’s missing socks. Their expertise allegedly knows no bounds – except, apparently, the ability to stay awake past 4:37 PM.

Please immediately submit your most perplexing questions to save these precious repositories of wisdom from permanent hibernation. The future of afternoon cribbage depends on it.

​Please send your questions here, preferably in large print and before bedtime.

(Disclaimer: The Council of Wise Elders accepts no responsibility for advice given during micro-sleeping or while under the influence of butterscotch candies.)

Other Articles of Interest this week:

Economic Development -- America’s “First Car-Free Neighborhood” Is Going Pretty Good, Actually? By Ben Ikenson | Dwell -- Since breaking ground in 2021, Culdesac Tempe has had its share of detractors and skeptics. But none of them live there.

Green Economy-- Is CO2 plant food? Why are we still talking about this? By Andrew Dessler | The Climate Brink -- the climate-denier zombie argument that, unlike plants, won't die. Recent interviews with Trump administration officials have revived a persistent myth in climate change discussions: “CO2 is plant food”. This is one of those zombie climate-denial arguments that just never goes away because 1) it’s a simple argument and 2) it seems intuitive — after all, plants need carbon dioxide, so more of it must be good, right?

Leadership-- Navigating the new geopolitical uncertainty - McKinsey Podcast with Cindy Levy and Shubham Singhal -- Yes, the changing geopolitical reality presents new risks—but like all disruptions, it may also create new opportunities. Here’s how.

Mentoring-- Lessons in mentoring from the bus garage by Russ Olwell | Community College Daily -- Drawing from his personal experience with his grandfather, a former bus mechanic who learned his trade through apprenticeship, author Russ Olwell connects this traditional learning model to modern educational innovation through a new degree apprenticeship program for paraprofessionals seeking to become teachers.

Technology -- Stellantis launches first in-house automated driving technology by Reuters -- Stellantis announced on Thursday the launch of its first in-house-developed automated driving system, STLA AutoDrive, designed to allow urban commuters to momentarily engage in non-driving tasks. The carmaker said its new system enables hands-free and eyes-off driving at speeds of up to 60 kilometers per hour (37 miles per hour).

Something You Should Read:

The Debt Scolds' Flawed Vision: How CBO's Debt Projections Rest on a Bogus Assumption

Stephanie, a prominent advocate for Modern Monetary Theory (MMT), offers a perspective that can empower governments. MMT suggests that governments with their own sovereign money need not be overly concerned about deficits but rather about interest rates and their impact on unemployment. This understanding can provide a sense of control and confidence, even in the face of political challenges. Kelton's book The Deficit Myth is a must-read for a deeper dive into MMT.

In one of her recent newsletters, Kelton challenges popular narratives about America's looming debt crisis by exposing a fundamental flaw in the Congressional Budget Office's long-term debt projections. The CBO's graphs show ever-increasing debt-to-GDP ratios over the next 30 years. These graphs assume that the government will violate its own laws by continuing to pay full benefits after program trust funds are exhausted—something it lacks legal authority to do.

Economic development professionals need accurate fiscal outlooks to effectively plan for public investment capacity and community growth. Communities developing long-term economic plans based on fears of massive federal debt burdens may unnecessarily limit their ambitions for transformative investments or public-private partnerships.

Understanding that fiscal constraints may be less severe than commonly portrayed allows economic developers to advocate more confidently for necessary funding. By focusing on the fundamental economic limits rather than artificial fiscal boundaries, they can feel reassured that their planning is guided by a more accurate understanding of federal finance mechanics.

In any case, Kelton's newsletter entry in this case makes a solid argument that CBO's' latest forecast does not precipitate a debt crisis. The real danger is in the perception of debt crises or the 'weaponization' of a debt crisis to become the rationale for the carnage the current administration is supporting under DOGE.

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​Read the article here. (It’s a short read)

Calling All Senior Economic Development Leaders Willing to Learn

No, you don't know it all...

You’ve spent decades building your communities, navigating complex deals, and fostering relationships that have shaped economic landscapes. But the field is evolving rapidly. Today’s emerging technologies, shifting workforce dynamics, and new approaches to community engagement are reshaping how we work.

To help you stay sharp, in tune and up-to-date, I have created the Seasoned/Rising Star Mastermind.

Through this mastermind, you’ll:

• Gain fresh perspectives on digital transformation and emerging economic trends
• Connect with the next generation’s innovative approaches to community development
• Create a lasting legacy by shaping tomorrow’s economic development leaders
• Stay current with evolving tools and methodologies in our field
• Build relationships with professionals who can carry forward your projects and vision

If this interests you, please let me know your interest soon. You can do it by linking here. The waiting list is filling up, so please act now.

Overheard :

“All in all it seems increasingly likely that the end of the world won’t come with a bang, but with a cringe”

– Emma Garland

Rabbit Hole:

The Underground Comedy: A Sewer System Saga

The sewer system is one of the most interesting things I've encountered working for cities and in economic development. Who knew my career would take such a draining turn?

In my first encounter in Deerfield, Illinois, as a young graduate student intern, I received my "Pipes 101" education. I learned the critical difference between storm sewers and sanitary sewers and why combining those flows was a terrible idea. Let's just say that when these two worlds collide, and heavy rainfall occurs, basements become indoor swimming pools with "mystery ingredients" nobody asked for.

Later, sewers became a big issue in making economic development projects work. Projects like potato chip factories relied on the community's ability to handle the effluent from washing potatoes. Yes, folks, before your crispy snack reaches your lips, those spuds needed a bath that would make Neptune jealous. Those underground pipes carrying rainwater or the daily constitutional contributions of thousands of citizens are secretly the unsung heroes of economic development.

I have a better grasp of sewers and their role than most people. At this point, I'm basically a "pipe influencer." If you don't share my enthusiasm and want to learn more (and who wouldn't?), consider watching "What's Inside a Manhole." It's the closest thing to a blockbuster in the underground pipe world—though I promise it contains zero horror movie scenes of clowns lurking below.

According to the Charts, It’s a Dogs Life

This is a cool website where you can find various graphics depicting numerous trends and statistics worldwide. The topics range from the evolution of snack food brand logos to dog ownership in Europe to the number of dogs working in federal agencies. We will see if those dog employment numbers hold up if DOGE is unsympathetic to its brethren and fires them en masse.

Speaking of dogs, we love our dogs. “Man’s best friend,” they say (“they” are everywhere; has anyone ever figured out who “they” are)? Anyway, I have had some great dogs and various breeds in my life. I’ve lived with Dachshunds, Bichon Frise, Spitz, Bassett Hounds, and a rare Spanish Breed: Catalan Sheep Dog (Esteban). I ended up with a dog from Spain, which is a story for another newsletter; however, Esteban was a special dog in my life.

Esteban was shipped to us from Spain, so he doesn’t make the list at the AKC Westminster Dog Show, and unfortunately, he doesn’t make this list of the most popular dogs in the USA either.

You can also see the least popular dogs here, some of which (most) I have never heard of.

A Dry Sleepy Time

As a child, I remember watching my father carry a glass of water on a small red plastic coaster as he went to bed. He did this every night for as long as I can remember. The glass was half full in the morning, which meant he had not drunk all of it. I never asked him about it.

Was he thirsty at night? Did he feel dehydrated in the morning without it? I have not undertaken this habit, but once in a while, I feel the need to sip water in the middle of the night.

At night, I like to drink soda water or nighttime tea. However, this article suggests that even that habit might not be conducive to good sleep.

​The article linked here does not provide advice on nightstand water drinking, but I assume it might be related to what drinking habits should be followed before bed.

Many of us have poor bedtime hygiene, meaning we spend too much time on our screens, fall asleep in front of fat TVs, and engage in a whole host of other deep sleep-deprivation activities.

In the case of water, it’s time you dried up your act.

Update Your Software

Human beings occasionally need an operating system update, such as software or a program that operates your computer. We find bugs and other issues that prevent us from fully functioning, and an update is required.

To help you update your human software, I offer "Mindset for Leaders," an ebook that explains the difference between a growth and a fixed mindset. Your purchase helps support this newsletter and keeps it free.

$12.99 Mindset for Leaders A new way of looking at things that promote learning and development can be helpful for your career and personal... Read more Get it now!

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Thanks for Reading

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Whenever you’re ready, there are several ways I can help you:

1. Economic Development: If you are looking to supercharge your economic development organization, I can help by strategizing and developing a roadmap to success. Set up a time to talk to me here.

2. Culture Change; Is your organization changing? Would you like to create an asset out of your culture? Do you know how to assess team strengths? Let me help you. I'm a certified culture change practitioner. Set up a time to talk to me here.

3. The Green Economy; The world is changing. Some of it is positive, and some of the change is not. Let me help you develop green economy opportunities for your community. Set up some time to talk about here.​

4. Mentoring Programs: Circles of Seven (C7) is a proven and award-winning model for mentoring. Whether it is for business or your community leadership program, I can develop a mentoring program for you. Let's talk about your situation. Set up a time here. ​

If you have any thoughts or comments regarding any articles in this newsletter please feel free to contact me through email at martin@martinkarlconsulting.com.​

You can review my services and offerings at www.martinkarlconsulting.com​

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