The assonant phrase “Dubai, Mumbai, Shanghai or Goodbye” was credited to Andrew Ross Sorkin of the New York Times in late 2007 at the beginning of the financial crisis on Wall Street. For years, New York, London and Tokyo held sway as the world’s financial capitals. Then the tectonic plates of the financial world began to move and these new cities were going to be the prime beneficiaries. read more »
What drives industry to locate in one region and not in the next?
Economic geography – the distribution of economic activity over physical space – has always been central to economic development. Policy-makers trying to encourage economic activity to locate in under-developed regions want answers: Is it infrastructure? Fiscal incentives? Good business environment? Or could it be agglomeration – the compounding effect of industry clustering in a particular location? read more »
January 1979 saw one of the worst blizzards in city history hit Chicago, dumping 20 inches of snow, closing O'Hare airport for 46 hours, and paralyzing traffic in the city for days. Despite the record snowfall, the city's ineffectual response was widely credited for the defeat of Mayor Michael Bilandic in his re-election bid, leading to Jane Bryne becoming the city's first female mayor.
In January 1978, a similar blizzard had struck the city of Indianapolis, also burying the city in a record 20 inches of snow. Mayor Bill Hudnut stayed awake nearly two days straight, coordinating the response and frequently updating the city on the snow fighting efforts through numerous media appearances. read more »
A recent widely-read piece in the Washington Post, “The Height of Power,” noted the great prospects of Washington's rise to the top, not only in politics but in publishing, media, business and the arts. In this way, it said, Washington's evolution will follow the pattern of other great capitals like London, New York, Paris or Tokyo. read more »
In a letter to The Wall Street Journal (February 6) defending California’s greenhouse gas (GHG) emissions policies, Governor Arnold Shwarzenegger’s Senior Economic Advisor David Crane noted that California’s high unemployment is the result of “a bust of the housing bubble fueled by easy money.” He is, at best, half right.
The “bust of the housing bubble” occurred not only because of “easy money,” but also because of the very policies California has implemented for decades and is extending in its battle against GHG emissions. read more »
Call it the Paulson Principle, Part Deux.
Under the now thankfully-departed Treasury secretary, we got the first bailout for the undeserving – essentially, members of his own Wall Street class.
Now comes the Democratic codicil to the P. Principle. It's a massive bailout and expansion of the public-sector workforce as well as quasi-government workers in fields like health and education. read more »
At the time of the election, less than 3 months ago, Seattle seemed to be riding above the fray, escaping the worst features of the recession, such as mass layoffs, even despite weakness in the housing market. Seattle area voters even approved a series of huge tax measures, including $30 billion for rail rapid transit, befitting what folks here like to consider a world-class city.
The story recently is much more somber, reeling somewhat from a series of high-level hits to the economy. read more »
It’s clear we need a new lexicon for emerging urban forms that are neither urban nor suburban in character. Yet when you raise that issue, you elicit some strongly held views — most of them negative — about whether anything other than a “real city” with its bad sections, panhandlers, and industrial areas can qualify as urban.
I feel it is increasingly difficult to make such distinctions. This is particularly true as we observe the rapidly changing character of inner-ring suburbs in particular, as well as the innumerable “new towns” that have sprouted up in what would otherwise clearly be suburban or even exurban locales. read more »
We have watched with trepidation as the stock market declines and along with it the value of our retirement accounts. Yet with our personal accounts, it’s our own problem. When it comes to public pensions, it’s the taxpayer’s problem. Underfunded pensions could cut two ways, leading to much higher taxes and/or cuts in government spending. read more »
For much of its history, New York City has thrived as a place that both sustained a large middle class and elevated countless people from poorer backgrounds into the ranks of the middle class. The city was never cheap and parts of Manhattan always remained out of reach, but working people of modest means—from forklift operators and bus drivers to paralegals and museum guides—could enjoy realistic hopes of home ownership and a measure of economic security as they raised their families across the other four boroughs. read more »