Rust Belt communities are obsessed with brain drain. The demographic losers of economic restructuring, cities are employing a variety of strategies to stop the bleeding and keep the talent from leaving the region. Akron, OH recently voted down a proposal to lease the city’s sewer system in order to fund a scholarship program designed to plug the holes of out-migration. The voters balked at the initiative partly as a result of the 30-year residential commitment necessary to reap the full benefits of the funding for post-secondary education in Akron schools. read more »
Nothing made Barack Obama's victory potentially more historically significant than his overwhelming support from millennial voters, members of the generation born in or after 1982. Obama won voters under 30 by roughly two-to-one, compared with barely half for John Kerry, making some Democrats positively giddy with the prospect of long-term domination of American politics. Most of these voters also stayed with the Democrats down ticket, enhancing the mass slaughter of GOP lambs across the country.
Whether the Democrats keep this edge, however, depends not so much on the new president's personal appeal, but on whether he and his party can deliver economically for workers entering a very tough economy. read more »
Telecommuting — or telework — is a critical tool that can help employees, businesses and communities weather the current financial crisis, and thrive afterward. However, right now, the nation is burdened with a powerful threat to the growth of telework: the telecommuter tax. This tax is a state penalty imposed on Americans who work for employers outside their home states and sometimes telecommute. read more »
Barack Obama rode to his resounding victory on the enthusiasm of two constituencies, the young and African Americans, whose support has driven his candidacy since the spring. Yet arguably the biggest winners of the Nov. 4 vote are located at the highest levels of the nation's ascendant post-industrial business community.
Obama's triumph reflects a decisive shift in the economic center of gravity away from military contractors, manufacturers, agribusiness, pharmaceuticals, suburban real estate developers, energy companies, old-line remnants on Wall Street and other traditional backers of the GOP. In their place, we can see the rise of a different set of players, predominately drawn from the so-called "creative class" read more »
North Carolina is the state where NASCAR meets the NASDAQ. The state’s largest city, Charlotte, is the hub of stock car racing but is also the nation’s No. 2 banking center behind New York. These two pillars of cultural and economic conservatism might not appear to present the best backdrop for a Democratic takeaway, but with less than 72 hours to go, Barack Obama is closing in on the checkered flag in North Carolina. read more »
For the past week an irritating little tune has bounced into my head unexpectedly every time I turned to news about the financial collapse. The melody would then remain at the edge of my consciousness for hours at a time like a buzz or a hum in my ear. Though I couldn’t make out the lyrics, I could distinguish the distinct nasal whine that Rex Harrison affected in the musical My Fair Lady. Still, I couldn’t pin down which song was playing on an endless loop in my head. Instead, as I made my way through the Kotokuraba Market in Cape Coast, Ghana, this past week, I found myself absentmindedly substituting my own lyrics to the Frederick Loewe score. At first I sang the line “If only Lehman Brothers was more like the Man! Know Thyself Pharmacy,” and then “If only AIG could be more like Is Not By Might Alone Construction.” Though my feeble attempt did not come close to scanning, I knew immediately that I was onto something. read more »
Initially San Francisco and the Bay Area market seemed to be immune to the financial meltdown resulting from the mortgage crisis. After all, the City and its accompanying affluent suburbs had not suffered drastic drops in home prices as seen in many other regions of the country. Yet as the mortgage crisis has snowballed into a complete meltdown of the worldwide financial system, the poster child of the ‘new economy’ now appears less and less immune from the turmoil dominating our news headlines.
The region that consists of the City by the Bay and the adjacent Silicon Valley is no stranger to drastic market corrections. read more »
Just months ago, urban revivalists could see the rosy dawn of a new era for America's cities. With rising gas prices and soaring foreclosures hitting the long-despised hinterland, urban boosters and their media claque were proclaiming suburbia home to, as the Atlantic put it, "the next slums." Time magazine, the Financial Times, CNN and, of course, The New York Times all embraced the notion of a new urban epoch.
Yet in one of those ironies that markets play on hypesters, the mortgage crisis is now puncturing the urbanists' bubble. The mortgage meltdown that first singed the suburbs and exurbs, after all, was largely financed by Wall Street, the hedge funds, the investment banks, insurers and the rest of the highly city-centric top of the paper food chain. read more »
By Richard Reep
Whether one believes that form follows function or that function can follow form, a town or a city needs three key elements to be healthy. Firstly, a sense of place that includes the sacred is important to people to provide a basis for spiritual involvement. The city must then be able to reliably deliver safety and security to its inhabitants in order to grow and mature. And lastly, a city must provide the means of employment for its inhabitants. read more »
It is not yet clear whether we stand at the start of a long fiscal crisis or one that will pass relatively quickly, like most other post-World War II recessions. The full extent will only become obvious in the years to come. But if we want to avoid future deep financial meltdowns of this or even greater magnitude, we must address the root causes.
In my estimation two critical and related factors created the current crisis. First, profligate lending which allowed many people to buy overpriced properties that they could not, in reality, afford. Second, the existence of excessive land use regulation which helped drive prices up in many of the most impacted markets. read more »