Small Cities

“Man is the only kind of varmint who sets his own trap, baits it, then steps in it.” — John Steinbeck

Though probably not intended as a political commentary, Steinbeck’s utterance perfectly describes the current California budget crisis. And, given the revenue and service delivery relationship between cities and the state, traps can be set and baited in Sacramento, leaving mayors, city councils and city managers to step in them.  read more »

A decade ago, the path to a successful future seemed sure. Secure a foothold in the emerging information economy, and your city or region was destined to boom.

That belief, as it turned out, was misguided.

In the decade between 1997 and 2007, the information sector--which includes jobs in fields from media, publishing and broadcasting to computer programming, data processing, telecommunications and Internet publishing--has barely created a single new net job, while some 16,000,000 were created in other fields.  read more »

INTRODUCTION

During the first ten days of October 2008, the Dow Jones dropped 2399.47 points, losing 22.11% of its value and trillions of investor equity. The Federal Government pushed a $700 billion bail-out through Congress to rescue the beleaguered financial institutions. The collapse of the financial system in the fall of 2008 was likened to an earthquake. In reality, what happened was more like a shift of tectonic plates.

In 1912 a German scientist, Alfred Wegener, proposed that the continents were once joined together as one giant land mass called Pangea.  read more »

Snook, Texas, a town of less than 600 souls, is best known for being the home of Sodalak's Country Inn, the originator of country fried bacon. It may seem an odd place to launch a return to financial health, but that's exactly what Dean Bass has in mind.

Bass, a veteran banking entrepreneur from Houston, in November bought the tiny First Bank of Snook as part of his plan to build a new financial powerhouse amid the worst economic downturn in a generation. The old bank, which also had a branch 15 miles away in College Station, home to Texas A&M, provided Bass with his charter, as well as access to a strong market on the far periphery of his home town.  read more »

Much has been written about how suburbs have taken people away from the city and that now suburbanites need to return back to where they came. But in reality most suburbs of large cities have grown not from the migration of local city-dwellers but from migration from small towns and the countryside.  read more »

Cities today have more political clout than at any time in a half century. Not only does an urbanite blessed by the Chicago machine sit in the White House, but Congress is now dominated by Democratic politicians hailing from either cities or inner-ring suburbs.

Perhaps because of this representation, some are calling for the administration and Congress to "bail out" urban America. Yet there's grave danger in heeding this call. Hope that "the urban president" will solve inner-city problems could end up diverting cities from the kind of radical reforms necessary to thrive in the coming decades.

Demographics and economics make self-help a necessity.  read more »

Back in the 1950s when I was growing up, pundits worried a lot about automation and the problem of leisure in a post-industrial society. What were the American people going to do once machinery had relieved them of the daily burden of routine labor? Would they paint pictures and write poetry? Armchair intellectuals found it hard to imagine.

It was the age of Ozzie and Harriet, when ordinary working and middle-class families could aspire to a house in the suburbs and a full-time Mom who stays at home with the kids. Today, of course, that popular version of the American dream is a thing of the past, especially the part about a full-time Mom who stays at home with the kids.  read more »

Like many on Main Street Paul Goodpaster is angry. Paul is my banker friend in Morehead, a retail, medical and education hub on the edge of eastern Kentucky. He observed that his bank was doing quite well – albeit hurt now by rising unemployment and an economy starting to have an impact even on those unglamorous places that had minded their business well.  read more »

One of the saddest tasks in the annual survey of the best places to do business I conduct with Pepperdine University's Michael Shires is examining the cities at the bottom of the list. Yet even in these nether regions there exists considerable diversity: Some places are likely to come back soon, while others have little immediate hope of moving up. (Please also see "Best Cities For Job Growth" for further analysis.)

The study is based on job growth in 336 regions – called Metropolitan Statistical Areas by the Bureau of Labor Statistics, which provided the data – across the U.S. Our analysis looked not only at job growth in the last year but also at how employment figures have changed since 1996. This is because we are wary of overemphasizing recent data and strive to give a more complete picture of the potential a region has for job-seekers. (For the complete methodology, click here.)

In a year when modest – if not negligible – growth could nudge a city toward the top of the Best Cities for Jobs rankings you would suspect there to be little opportunity for big leaps up the scale. On the other hand, one could easily expect that there would be some places whose economic fortunes would resemble a vertigo-inducing fall.

A look at the 2009 rankings confirms that there are many cities whose job-creating engines have sputtered.  read more »