Economics

Headquarters were once a defining characteristic of urban economic power, and indeed today cities that can still brag of the number of entries they boast on the Fortune 500 list of largest American firms. Yet as urban centers increasingly lost headquarters, boosters started to downplay them as a metric, particularly with the rise of the so-called “global city” concept. Today the HQ is back into the urban mix, but increasingly as what I would call the “executive headquarters” which brings bragging rights to a city but not much in terms of middle class jobs.

The corporate headquarters in a downtown skyscraper took a beating during the 70s, 80s, and 90s as America’s inner cities went into decline. Why locate in a decaying, lawless, dysfunctional urban setting that seemed destined for the scrap heap when the shiny suburbs beckoned?   read more »

This week the coastal crowd will get another opportunity to laugh at the zany practices of those living in the frozen reaches of the Great Plains. The new television series “Fargo,” based on the 1996 Coen brothers movie, will no doubt be filled with fearsome violence mixed with the proper amount of Scandinavian reserve and wry humor — the very formula that made the original such a hit.  read more »

In many uncomfortable ways, American politics now resemble those that arose late in the Roman Republic. As wealth and land ownership concentrated in few hands, a state built on the discipline of soldiers who tended their own farms became ever more dominated by fractious oligarchs. As property consolidated into huge slave-owning estates, more citizens became landless and ever more dependent on the patronage of the rich generals and landowners who increasingly seized control of politics.  read more »

Brainpower rankings usually identify the usual suspects: college towns like Boston, Washington, D.C.,  and the San Francisco Bay area. And to be sure, these places generally have the highest per capita education levels. However, it’s worthwhile to look at the metro areas that are gaining college graduates most rapidly; this is an indicator of momentum that is likely to carry over into the future.  read more »

If there's anything both political parties agree upon, it's that our education system is a mess. It is particularly poor at serving the vast majority of young people who are unlikely either to go to an elite school or get an advanced degree in some promising field, particularly in the sciences and engineering.  read more »

Are we becoming a part-time economy? Maybe. A collaborative economy? Possibly. A freelance economy? Definitely. Here's the evidence:

The Part-Time Economy- Involuntary part-time work is at a historic high, and the workforce participation rate is at a near-historic low. The number of unemployed people is higher, and the number of jobs in the economy is lower, than five years ago. During this weak recovery, more people have left the workforce than have started a new job, and a high percentage of the jobs that are being created are low-wage and part-time.  read more »

Southern California, once the center of one of the world's most vibrant business communities, has seen its economic leadership become largely rudderless. Business interests have been losing power for decades, as organized labor, ethnic politicians, green activists, intrusive planners, crony developers and local NIMBYs have slowly supplanted the leaders of major corporations and industries, whose postures have become, at best, defensive.  read more »

One of the great memes out there in trying to diagnose persistently high unemployment and anemic job growth during what is still, I argue, the Great Recession is the so-called “skills gap”. The idea here is that the fact that there are millions of unfilled job openings at the same time millions of people can’t find work can be chalked up to a lack of a skills match between unemployed workers an open positions.  read more »

To some, the $19 billion paid by Facebook for the Silicon Valley start-up What's App represents the ultimate confirmation of the capitalist dream. After all, these riches are going first and foremost to plucky engineers whose goals are simply to make life better for the public. Got a problem with that?  read more »

The New York Times ran a Timothy Egan editorial on California on March 6.  The essay entitled Jerry Brown's Revenge was reverential towards our venerable Governor.  It did, however, fall short of declaring Brown a miracle worker, as the Rolling Stone did last August.  These and other articles are part of an adoring press's celebratory spasm occasioned by the facts that California has a budget surplus and has had a run of strong job growth.  read more »