The former Republic columnist, now a Seattle-based author, continues his must-read meditations on the Valley and its discontents, “Phoenix 101.”

In his most recent post, he describes the diverse economy the area once had, ranging from vast swaths of agriculture to tech firms:

[B]y the late 1940s, Phoenix’s leaders knew the city must attract new industries or it couldn’t sustain its growing population. Stewards such as Frank Snell made aggressive efforts to attract “clear industry.” It paid off with AiResearch, Hughes Aircraft, Sperry Rand, General Electric and especially Motorola. Makers of automobiles and tractors were lured to establish proving grounds to test under desert conditions. (Between the mines, railroads and construction, membership was very high statewide in trade unions).

In other words, as Phoenix emerged as a populous city in the 1960s, it had an strikingly dynamic and diverse economy, with well-paying jobs — especially for a place so isolated and relatively new. Of course real estate and construction were big (along with tourism). Maryvale and Sun City were new. The groves of Arcadia were being turned into subdivisions. Land fraud was rampant — I remember vividly one man who defrauded my grandmother, a real estate agent, being sent to prison; the Arizona Republic’s martyred reporter Don Bolles earned his chops on exposing such schemes. But real estate was a consequence of the real economy. Real estate wasn’t the economy.

You know what’s coming:

Much changed from when I left in 1978 and returned in 2000. By that point, the Phoenix economy, while still containing the remnants of the old chip makers plus Intel, had degenerated into a massive real-estate Ponzi scheme plus some call centers. Everything depended on adding 100,000 more people a year. Aside from this, the metro economy couldn’t match up to the diversity, quality, dynamism or incomes of its peers. Arizona, after tracking the national average in per-capita income as late as the 1980s, consistently lost ground, a trend that continued during the 2000s “boom.”

The balance of his very long and persuasive post details meticulously how that change happened.

You can read it here.

The complete Phoenix 101 archive is here.