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against conservative opposition to government spending on science and technology that is not defense related.
    Licklider proposed a computer network allowing researchers working on defense contracts to communicate with each other. His 1962 memo about an “Intergalactic Computer Network” laid out a vision of the Internet, the first element of which was created by ARPA and MIT in the form of ARPANET, the world’s first packet-switching network. Contrary to folklore, the purpose of ARPANET was to allow researchers working on projects for ARPA to communicate with each other, not to create a communications system to survive nuclear war. In 1986, ARPANET was connected to NSFNET, a network created by the National Science Foundation (NSF) to allow researchers funded by its grants to communicate with each other. NSFNET was opened first to all academics and then to businesses and the general public, evolving into today’s Internet, which is global if not yet intergalactic.
    A side trail leads us from NSFNET to Vannevar Bush’s brainchild, the NSF, from which another side trail goes to a discussion of the Digital Library Initiative (DLI). Among the graduate students funded by the DLI project were Larry Page and Sergey Brin, who was also supported by an NSF graduate student fellowship. Their research led them to create a superior search engine and in 1998—with an initial office in a garage, of course—they incorporated Google, Inc. With the help of Eric Schmidt as CEO, Page and Brin defeated competitors like Inktomi and Dogpile and built Google into the world’s dominant search engine.
    Google’s search engine results were closer than anything yet to the trails on the imaginary memex. Searching for any number of topics involved in the third industrial revolution would lead to articles and books mentioning Vannevar Bush and “As We May Think.”
    Right back where we began.

Chapter 17
The Next American Economy
    The history of the productive apparatus is a history of revolutions. So is the history of transportation from the mailcoach to the airplane. . . . This process of Creative Destruction is the essential fact about capitalism.
    —Joseph A. Schumpeter, 1942 1
    We believe that this country will not be a permanently good place for any of us to live in unless we make it a reasonably good place for all of us to live in.
    —Theodore Roosevelt, 1912 2
    I n the early twenty-first century, Paterson, New Jersey, is a troubled city in a troubled country. The city that traces its origins back to Alexander Hamilton’s Society for Establishing Useful Manufactures (SUM) has lost most of its manufacturing businesses to other countries. Like other cities in America’s deindustrialized Rust Belt, Paterson has been plagued for decades by poverty, crime, and urban decay. Like other northern industrial cities, Paterson became a home of black migrants from the South just as many manufacturing jobs that provided ladders to middle-class status were disappearing. National shifts in demography are reflected in Paterson, where a majority in the city now consists of Latino immigrants and their descendants. Immigration has helped to revitalize the city, to some degree. But levels of poverty, illiteracy, and illegitimacy are high.
    About twenty miles south of Paterson in Elizabeth, New Jersey, is something called Foreign Trade Zone 49. FTZ 49, established in 1979, is one of hundreds of special business districts created in recent years in the United States that provide special customs treatment for companies engaged in international trade. Operated by the Port Authority of New York and New Jersey, FTZ 49 is one of the largest contiguous foreign trade zones in the country. Its 3,587 acres include 2,075 acres in the Port Newark/Elizabeth Port Authority Marine Terminal; 41-acre Global Marine Terminal and 145-acre Port Authority Auto Marine Terminal, both in Jersey City/Bayonne; 125-acre Industrial Park at Elizabeth; 53-acre Greenville Industrial