Author: Andy Sywak

  • Forget the Crackerjacks: $2,500 to See Yankees at New Stadium

    Baseball and football, America’s great everyman sport, won’t be that way much longer for fans in the Big Apple. Glittering new stadiums for the Yankees, Mets and one which the Jets and Giants will share aren’t exactly meant for the “dollar dogs” crowd.

    The Giants have said they will charge from $1,000 to $20,000 a seat for their personal seat licenses; once fans buy the seat licenses, they will still have to pay from $85 to $700 a ticket… Tickets for the best seats at the 85-year-old Yankee Stadium, which sold for $1,000 a seat this season, will jump at the new ballpark to $2,500; in other areas of the stadium, they will range from $135 to $500 for season tickets.

    Never mind the fact that the $3.7 billion being spent on the three new stadiums means that New York’s pressing infrastructure needs – particularly in wastewater –will be parried away for a while (Center for an Urban Future has a piece on all of New York’s infrastructure needs).

    There’s also a wonderful segment about increasing ticket sales on “HBO Real Sports” this week. Bryant Gumbel interviews long-time New York sports fans refusing to go along with the ticket increases out of “self-respect.”

  • 250 Square Feet Condos in San Francisco

    In this famously expensive city, one developer has a plan: Build 250 square-feet condos for singles who can then move on up. The 98 units will sell from $279,000 to $330,000.

    Yes, it sounds like a glorified closet, but you have to admire Hauser Architects’ sense of practicality for these Hong Kong-style apartments. The huge towers going up on Rincon Hill and South of Market are only meant for those earning well into six figures. It’s refreshing that someone is actually building housing not meant for the super-wealthy. It could also serve as a harbinger of housing to come for single middle-class urban dwellers.

  • “It’s Like Christmas in here”: Tourists Propping up the U.S. Luxury Market

    One interesting thing about the luxury economy today in the U.S. is how much of it is being driven by tourists and non-residents. Another salient point: how the very wealthy have been largely immune to the current downturn.

    An article in the LA Times about the shopping habits on Rodeo Drive brings both these points home. “Business has been crazy-great,” said a manager of the Christofle shop just off of Rodeo Drive in LA – a purveyor of silver flatware and other furnishings. “It’s like Christmas in here.”

    Apparently, the famed street of tony boutiques and celebrities has been annexed for the time being by flush foreigners. “Saudi princesses,” confided a saleswoman at one Rodeo Drive clothing store. “That’s who’s doing all the buying.” Where’s US Weekly’s article about how those poor starlets are feeling marginalized by all this?

    And today, an article in the New York Sun reveals that a full third of New York condo sales are being grabbed up by Europeans who now constitute 15 percent of the entire market.

    – Former San Francisco Mayor Willie Brown, who’s new column in the SF Chronicle I am thoroughly enjoying, had this vignette about walking around the shops at Union Square:

    “At Bloomingdale’s – packed and nobody speaking English. Neiman Marcus – no English. And nobody, but nobody, was speaking English in Prada.
    It’s all Italian, Dutch, French, German and heavy, heavy Russian.

    The Europeans are absolutely the biggest retail customers these days downtown, and they are spending like crazy.”

    But this could change, the dollar rose eight percent against the euro in the last month. Better grab those $10,000 silverware sets while you can.

    But nativist shoppers, fear not – I heard nary a foreign tongue as I flipped through the sales rack at Gap.

  • Portland and L.A: Not Exactly Long-Lost Brothers

    One of these cities is the perennial Cinderella to urban planners; the other the ugly sister who always crashes the party. One is the well-planned “City of Roses” (no, not Pasadena), a bastion of mass-transit and controlled development along the Columbia River while its gargantuan sister to the south eschews all such enlightened principles.

    That’s the gist at least from this paean to Portland in the LA Times today about what the city could learn from its lithe Northern cousin.

    A few key differences between these two:

    • The vast majority (90%) of job growth in Portland has been in the suburbs

    • Portland is actually far less dense than LA

    • It has a tiny population of immigrants and poor vis-a-vis LA

    • The city is losing families and children and rivals San Francisco for having the lowest percentage of its population under the age of 18 of any major U.S. city.

    And he doesn’t mention Portland’s greatest comparative advantage to LA: amazing beer!

    One thing both cities have in common right now: two of the most dynamic music scenes in the country.

    —-

    Here’s Joel Kotkin’s piece about Portland a few years ago.

  • Chicago Condo Market Inertia

    New home sales went down by a whopping 73 percent in the Windy City during the first six months of this year. But developers, anticipating high demand – especially for the condo market – have committed to keep building them. From the article in Crain’s Chicago:

    “Developers are building at a record pace, with 9,528 units scheduled to be finished by the end of next year, Appraisal Research says. Nearly 33% of those remain unsold, a high percentage but slightly better than the first quarter’s 35%.”

  • Income Chasm Growing in Massachusetts

    Mirroring a national trend, the income gap is increasing in the Bay State. From the Boston Globe article:

    “The gap between rich and poor has widened substantially in Massachusetts over the past two decades, according to a new study by the University of Massachusetts. Only those earning the highest incomes benefited from gains in technology, productivity, and globalization, while middle-class earnings stagnated and incomes for poor families plunged 15 percent.”

  • Public Opinion Favoring a new New Deal?

    According to this report by Greenberg Quinlan Rosner research, the American public is restive for “bold change.” One of the key findings of the report is that: “Voters are looking for dramatic action. Just 35 percent of voters say we can solve America’s problems with minor changes, while nearly two-thirds believe it will take ‘major changes’ to bring about solutions.” And these respondents look more favorably upon the political legacy of FDR, rather than Reagan, to affect that change.

    This climate of political disenchantment is similar to the one that greeted FDR when he entered office. Americans had gone through 12 years of Republican administrations; they viewed Hoover as grim and ineffectual as a leader. His predecessor, President Coolidge, had a famous line that “the business of government is business” which did not exactly resonate with the masses in the fall of 1932. People were ready for boldness and a different approach to economics and government and they got it.

    Memo to the candidates to “make no small plans.”

  • Black Migration out of California

    This recent article in the San Francisco Chronicle discusses how politicians in the city are trying to stem the flight of blacks from the city – who now only make up 6.5 percent of the city’s population (it was 13.4 percent in 1970).

    There are two problems with this article. One is it fails to contextualize the pattern of black migration in America. As this report from William Frey of the Brookings Institute points out, black population growth is shifting to the South and to newer communities in the West with a lower cost of living. If you look at a map of California in Frey’s report, you’ll see 25 percent population growth of blacks in some suburban communities.

    Secondly, the article doesn’t link this occurrence to current economic trends in San Francisco. The city is increasingly becoming a haven for the very wealthy which is pushing out the middle and lower earners – and blacks in the city are more likely to fall into this income bracket.

    Finally, albeit a small reason, Section 8 vouchers are moving some working class blacks to the suburbs.

    If you read the Chronicle article, it sounds like the City is being very antagonistic towards the black community. Perhaps it is in an inadvertent economic way. I think that perhaps the bigger culprit is that the city is not hospitable to the middle class and families any longer. And secondly, college-educated and affluent blacks are choosing to live in cities like Atlanta where there is a higher concentration of black professionals and business and cultural centers.

  • The New Deal & the Legacy of Public Works

    Almost completely ignored in the press this year has been the 75th anniversary of the New Deal. Social Security, public housing, school lunches, deposit insurance, labor relations standards and banking regulations are among its many enduring legacies. On this anniversary, it is worth looking at the public works programs that constructed roads and buildings that still exist in every county in America.

    In a nation where a quarter of the adult population was unemployed, the immediate goal of the New Deal was to provide temporary relief for Americans who were destitute and put them back to work. The failure of the Hoover Administration to either curtail the Depression or inspire people created a political climate for dramatic action.

    During FDR’s first 100 days – called the “First New Deal” by historians – a truly impressive list of legislation was passed. Prohibition ended, the Tennessee Valley Authority was created eventually bringing electricity and development to an impoverished area of the South, and controls were placed upon industrial practices, Wall Street, labor relations and farm output. The Civilian Conservation Corps, which ended up planting two billion trees across the country, was founded. A historian would be hard pressed to find a more energetic first 100 days of any administration.

    Yet one of its most far-reaching accomplishments was the Federal Emergency Relief and National Industrial Recovery acts which created the bureaucracy to institute public relief by funding large-scale public works. Under the system, states applied for grants from the federal government. Over the next ten years, the government would spend nearly $9 billion dollars though the Civil Works Administration (CWA), Public Works Administration (PWA) and the Works Progress Administration (WPA).

    The depth and social unrest created by the Depression provided motivation for New Deal officials to act quickly and decisively. The official who was the center of the action was Harry Hopkins. A hyper-competent social worker who had created a program to deliver services to mothers with dependent children in New York City and founded the American Association of Social Workers, Hopkins jumped into his role as head of federal relief with tremendous vigor. After a five-minute meeting with Roosevelt on his first day of work in May of 1933, he was dispatched to a cockroach-infested building on New York Avenue where, by the end of the day, he had dispensed with $5.3 million in aid to eight states. In a year’s time, Hopkins had created a jobs program that spent a billion dollars and provided badly needed jobs to over three million people during the cold winter of 1933 (the average wage was $13 a week). He spent money quickly – perhaps too quickly, some maintained – but his focus was to respond to FDR’s demand to quickly create jobs and alleviate misery in the country.

    But Hopkins was not a welfare statist. His career as a social worker had taught him that individuals did not want to be “on the dole,” living off the largesse of the state. By finding work for unemployed breadwinners, Hopkins believed he could keep families strong and enable them to retain their pride despite the hard times.

    This psychological aspect should not be underestimated. The Depression was more than a huge decline in GDP, vast unemployment and lost industrial output – it was a great identity crisis for a nation that placed great value on self-sufficiency and self-reliance. Look at New Deal art (another achievement of the New Deal are all the beautiful murals still in existence created by government funded artists) and you will see a glorification of labor. Frescos from San Francisco to New York depict colorful scenes of men hard at work.

    Today bureaucrats stress cost-effectiveness ratios, but New Deal reports were most concerned with how many jobs a project provided. Conservative critiques of the New Deal for a mixed record of achieving economic growth often miss this critical point. The official report of WPA projects in San Francisco, for example, lists as its main achievement how “the program contributed to the continuance of the normal standards of living of the working man’s family in San Francisco and maintenance of the courage and morale of the ordinary citizens through a most distressing period.” Expenses for projects are listed not just in dollar amounts spent but also in the number of “man hours” provided to workers.

    When Roosevelt ran for re-election the first time in 1936 (“Four Years Ago and Now” was his campaign slogan), he could claim six million jobs had been created in the last three years. He could point to a doubling of industrial output and the creation of a Farm Credit Administration that on an average day saved 300 farms from foreclosure. Still, eight million people were still out of work in 1936 and the public works programs, historically audacious they were, did not solve many of the nations entrenched economic and social problems. Roosevelt himself did not want his public works programs to compete with private industry or to create dependency on the state.

    Yet, looking back at the WPA and its companion public works agencies, the list of lasting contributions to the nation’s infrastructure are indeed impressive: 78,000 bridges, 650,000 miles of roads, 700 miles of airport runways, 13,000 playgrounds, hundreds of airports built and 125,000 military and civilian buildings were constructed. The roads and public works constructed by the WPA and PWA ended up being lasting infrastructure investments.

    However, perhaps the New Deal’s most enduring achievement was creating a sense of unity at a time of unparalleled economic crisis. Whereas the nation had previously elevated Horatio Alger -style self-reliance, the New Deal tapped into the creative industrial potential both of common unskilled laborers and thousands of skilled and creative workers. It created a sense of pride among millions who for the rest of their lives could point to public buildings they helped design and build, as well as the roads they laid out and paved.

    The 1930s produced the Hoover and Grand Coulee dams, the Golden Gate and Bay bridges, La Guardia Airport and the San Antonio River Walk. Besides some luxury high-rises, high-tech sports stadiums with retractable roofs and edgy art museums, what great things have we achieved lately?

    Andy Sywak is the articles editor for Newgeography.com.

  • Chicago Students’ Greatest Fear: Getting Shot

    With 36 Chicago Public School children murdered in the last 12 months, the Chicago Sun-Times reports that getting shot has become the number one fear of children in the city’s violent neighborhoods.

    The fear seems most pervasive among fifth to eighth graders.