In the next two years, America’s large cities will face the greatest existential crisis in a generation. Municipal bonds are in the tank, having just suffered the worst quarterly performance in more than 16 years, a sign of flagging interest in urban debt. read more »
Economics
Agglomeration Vs. Isolation for Science Based Economic Development
Earlier this month President Obama signed the reauthorization of the COMPETES Act, which provides federal funding for science initiatives aimed at enhancing economic competitiveness. In addition to shoring up agencies like the National Science Foundation, the bill called on the Department of Commerce to create a new program charged with supporting the development of research parks and regional innovation clusters. Unheard of before World War II, these entities today represent the cutting edge in what insiders call TBED: technology-based economic development. read more »
Rise of the Hans
When Chinese President Hu Jintao comes to Washington this week, there aren't likely to be many surprises: Hu and Barack Obama will probably keep their conversation to a fairly regulated script, focusing on trade and North Korea and offering the expected viewpoints on both. But seen from a different angle, everything in that conversation could be predicted, not from current events but from longstanding tribal patterns. read more »
Self-Employment Key to Expanding Rural America’s Revival
In many ways, these are the best of times for rural America. Rising commodity prices for food, fiber and energy have revived the economy in much of the nation’s heartland. But still, many rural communities still are losing population, particularly among the young, and suffering unacceptably high rates of poverty. What accounts for this “best of times, worst of times” scenario? read more »
Fuzzy Thinking by Famous Economists
Edward L. Glaeser, in an end-of-year piece for the New York Times, claims that generous housing supply is the reason that Texas’s economy is performing so well. As he says in his final paragraph:
“Housing regulations, more than those that bind standard businesses, explain the Sun Belt’s population growth. If New York and Massachusetts want to stop losing Congressional seats, then they must revisit the rules that make it so difficult to build. High prices show that the demand would be there if the supply is unleashed.”
This can’t be true. read more »
The Heartland Rises
The change in congressional power this week is more than an ideological shift. It ushers in a revival in the political influence of the nation’s heartland, as well as the South.
This contrasts dramatically with the last Congress. Virtually its entire leadership — from former House Speaker Nancy Pelosi (D-Calif.) on down — represented either the urban core or affluent, close-in suburbs of large metropolitan areas. Powerful old lions like Reps. Charles Rangel (D-N.Y.) of Harlem, Henry Waxman (D-Calif.) of Los Angeles and Barney Frank (D-Mass.) of Newton, an affluent, close-in Boston suburb, roamed. The Senate was led by Sen. Harry Reid (D-Nev.), who loyally services Las Vegas casino interests while his lieutenant, Sen. Chuck Schumer (D-N.Y.), is now the top Democratic satrap of Wall Street. read more »
California’s Third Brown Era
Jerry Brown’s no-frills inauguration today as California governor will make headlines, but the meager celebration also marks the restoration of one of the country’s most illustrious political families. Save the Kennedys of Massachusetts no clan has dominated the political life of a major state in modern times than the Browns of California. A member of this old California Irish clan has been in statewide office for most of the past half century; by the end of Jerry Brown’s new term, his third, the family will have inhabited the California chief executive office for a remarkable two full decades since 1958.
Brown, at 72 the oldest governor in state history, may well determine the final legacy of this remarkable family. His biggest challenge will be to reverse the state’s long-term secular decline — a stark contrast to the heady days of the first Brown era, presided over by paterfamilias Edmund “Pat” Brown. read more »
The NFL: Running the Numbers in the Football Business
Why does America — and I include myself — invest so much psychic energy, not to mention hard dollars, in professional football, a sport that on many levels combines the worst aspects of roller derby and professional wrestling? read more »
The Poverty Of Ambition: Why The West Is Losing To China And India - The New World Order
The last 10 years have been the worst for Western civilization since the 1930s. At the onset of the new millennium North America, Europe and Oceania stood at the cutting edge of the future, with new technologies and a lion’s share of the world’s GDP. At its end, most of these economies limped, while economic power – and all the influence it can buy politically – had shifted to China, India and other developing countries. read more »
Toronto: Three Cities in More than One Way
The issue of income disparity in Toronto has once again been brought into the public eye by a December 15th report by University of Toronto Professor David Hulchanski. The report, “The Three Cities Within Toronto,” points to a growing disparity in incomes between Downtown Toronto, the inner suburbs, and the outer suburbs of the city. The report demonstrates that between 1970 and 2005 the residents of the once prosperous outer suburbs have been losing ground compared to the now wealthy downtown core. The results for the inner suburbs have been mixed. read more »