Economics

Are Compact Cities More Affordable?

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Housing affordability has been a tenacious and intractable urban problem for as long as stats have been kept. Several cities recently declared it a crisis. But what kind of problem is it? Opinions vary widely. An economic problem, or a social one? A land resource issue? Or, as traded wisdom would have it, the result of reliance on the wrong urban form? Proposed solutions vary accordingly. Now, new evidence rules out one potential source of unaffordable housing: clearly, it is not an urban form problem. The widely-believed theory that a city's lack of affordable housing can be fixed with increased compactness — when combined with public transit — is apparently wrong.  read more »

The Best Small And Medium-Size Cities For Jobs 2016

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When we look at how the U.S. economy is performing, we usually focus on the largest metropolitan areas. But some 29% of non-farm jobs in the U.S. are in small and midsize metro areas. And since they tend to be less economically diverse and more volatile, these metro areas often are where we can more clearly see the fissures in the economy — the sectors that are growing, and which are shrinking.  read more »

De-Industrialization and the Displaced Worker

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Much has been made of working class pain in this election, but the problems go well beyond that.  I don’t like the 1% vs. 99% frame, but it captures something important about our society, namely a sort of bifurcation that has occurred between top and bottom. Roughly the top 20% are doing quite well, and increasingly live in communities surrounded by others like themselves. The bottom 80% does not seem to be faring so well on a variety of social and economic statistics.  read more »

Scandinavian Women Do Well, Except at the Top

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In which part of the world should we expect most women to reach the top? The answer has to be the Nordic countries. According to The Global Gender Gap report, for example, Iceland is the most gender equal country in the world followed by Norway, Finland and Sweden. Yet as I will discuss below, this has not translated in women making it to “the top”, as one might expect. This a paradox that I will seek to address.  read more »

Developing Economies Dominate Per Capita GDP-PPP Growth

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The world’s developing economies have dominated purchasing power economic growth over the last 35 years, according to the most recent gross domestic product (GDP-PPP) per capita data from the International Monetary Fund (IMF). This article summarizes economic growth for three periods, including from the earliest IMF data (1980 to 2015), the intermediate 2000 to 2015 period and the more recent 2010 to 2015 timeframe.  read more »

The Best Cities For Jobs 2016

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While speculation is mounting that they’re overheating, the tech boom is still creating jobs at a rapid pace in the Bay Area and Silicon Valley, placing them atop our annual assessment of The Best Cities For Jobs for the third year in a row. A number of secondary tech centers are posting strong growth as well on the back of the boom, as well as spillover from Northern California as high prices push expanding companies and startups to locate elsewhere.  read more »

Would Reaganomics Work Today?

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The key drivers that propelled the Reagan economy are now tapped out or out of favor.

The name of Ronald Reagan is frequently evoked by the current contenders to the GOP nomination. Donald Trump speaks admiringly of the 40th President of the United States and uses a truncated version of his 1980 campaign slogan “Let’s Make America Great Again”. Ted Cruz promises to implement Reagan’s solution of lower taxes, lower regulation and a stronger military. Before he bowed out recently, Marco Rubio was equal in his praise. And John Kasich stakes an even more tangible claim by reminding us that he is the only candidate who actually worked with Reagan.  read more »

America's Software And Tech Hotspots

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Where is America’s tech and software industry thriving? In a new study conducted for the San Diego Regional Economic Development Corp., researchers took an interesting stab at that question, assessing which metro areas have the strongest concentrations of software developers, spread across a broad array of industries, as well as the best compensation and job growth, and access to venture capital funding.  read more »

Geography and the Minimum Wage

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Most commentary on California’s decision to increase the state minimum wage to $15 over time is either along the lines of it being a boon to minimum-wage workers and their families or a disaster for California’s economy.  Neither is accurate.  Different regions sill see different outcomes.  Central California, the great valley that runs from Bakersfield to Redding, once again, will bear a disproportionate burden.   read more »

A $15 Minimum Wage Is A Booby Prize For American Workers

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In principle, there is solid moral ground for the recent drive to boost the minimum wage to $15, with California and New York State taking dramatic steps Monday toward that goal. Low-wage workers have been losing ground for decades, as stagnant incomes have been eroded by higher living costs.  read more »