New Geography

Category: Urban Issues

  • Amtrak Fails To Weather The Storms

    Why do I persist in riding Amtrak, the short name for the National Railroad Passenger Corporation, a company originally owned by the freight railways, but now subsidized by Congress and run like a Russian bureaucracy, complete with late trains, sullen employees, myriad petty regulations, budget deficits, cold coffee, feather bedding, broken seats, clogged toilets, rail cars that feel like buses, and a schedule that serves the interests of congressmen, lobbyists, unions, budget stimulators, and small-town mayors, but rarely passengers?

    Isn’t it time to let Amtrak go the way of such failed railroads as the Nickel Plate, Erie Lackawanna, Chicago & Alton, Rock Island, Maine Central, Wabash, Missouri Pacific, or the New York Central, lines that outlived their corporate incarnations and were either wound up or merged into larger entities?

    Amtrak was set up in 1971 to replace the passenger rail network that was killed off by government regulations, the Interstate Commerce Commission, subsidized air and road travel, and urban blight. The new entity went to work hauling passengers on a route system better adapted to 1921 than 1971. The earlier trains were faster.

    It’s hard to imagine Leland Stanford or E.H. Harriman buying into the Amtrak business model. Forty years after Amtrak’s creation, little of its plan has changed. It offers corridor services on the East and West coasts and, in between, a meandering schedule of trains that account for less than one percent of all intercity travel.

    Buyers could easily be found for the Northeast Corridor service between Boston and Washington. Better yet, allow competition on the line, and auction off the franchise rights, using the proceeds to pay down national debt.

    England had the dreadful network that operated as BritRail. After it was privatized, Britain’s rail service became competitive, passenger friendly, faster, and more comfortable.

    Compare the new British private train system with the Amtrak experience (“Enjoy the journey”). Think about New York’s Pennsylvania Station, a subterranean strip mall with dank corners, uncomfortable chairs in cheerless waiting rooms, confusing destination boards and dreary platforms that have seen few improvements since I first used them in the early 1960s.

    Passengers buying Amtrak tickets in Penn Station stand in a line that feels like Ceauşescu’s Romania. Only one or two agents are on duty, the tickets are expensive, you need you an identity card to buy one, and getting on the train has the feel of descending into a Chilean mine.

    At the cost of billions, there’s a plan for a new “Moynihan Station” across the street, although much of what’s wrong with Penn Station could be fixed if Amtrak outsourced the operation to Hyatt.

    Its shoddy service explains the rise of discount bus lines that are now digging into core Amtrak passenger revenue between Boston, New York, and Washington. Companies such as Bolt Bus charge $15 or $20 to get from New York to Boston, while Amtrak costs $67 to $95, depending on the day and time.

    Bolt leaves from West 34th Street, and departures are punctually on the hour. The seats are cramped, but the buses are clean and have Wi-Fi. The trip takes less time than many trains, when you add in inevitable Amtrak delays. Nor is there a surly Amtrak conductor reading the riot act at each station.

    To get a flavor of Amtrak’s attitude toward its passengers, read the cheerful words of its CEO in the on-board magazine: “Our identification policy, random screenings in stations, random on-board ticket verification process and more interactive police efforts—including our K-9 teams—are some of the visible activities we have been working on.” Trains used to advertise comfortable berths with sleeping kittens.

    Killing off Amtrak would mean the end of long-haul passenger service, the sleepers that are the heirs to trains like the Twentieth Century Limited. I would deeply regret the absence of long-distance train travel in the United States. But, were Amtrak spun off, its overpriced and indifferent service might be replaced by a network of private operators that would compete to take Americans around a glorious country that longs to be seen by rail.

    Even today, Amtrak trains run near full capacity, and the potential to tap into a travel-happy country of 300 million ought to interest a few hedge funds and stock jobbers, not to mention flourishing overseas rail companies.

    Already there are nascent private companies and sleeping car owners that offer rail trips to national parks, art museums, jazz festivals, baseball games, and the homes of famous writers. Deregulate the passenger industry, and companies like these will flourish. Railroads are in America’s entrepreneurial DNA.

    Recently, for $325, less than the cost of a cramped night in an Amtrak “Slumberette” (emphasis on the “ette”), I rode round-trip in a private rail car, New York Central 3, owned by Lovett Smith III, from New York to Pittsburgh.

    Along the way, I sat on the open, rear platform from which presidential candidates whistle-stopped across America, and took in the sweep of the Philadelphia skyline, the majesty of Amish country (I loved the teams of horses pulling plows), the arched bridge across the Susquehanna, the engineering marvel that is the Horseshoe Curve, the path of the Johnstown Flood, and the remnants of the steel industry around Greensburg. Inside the car, I chatted with my fellow passengers, ate elegant meals, and sampled Italian wines (a group on board had organized a tasting). Were Amtrak a service company, not a protection racket set up to bleed government money into padded contracts, it would have the imagination to operate similar excursions.

    Instead, Amtrak wants to position itself as the paymaster for a national rail plan. The Department of Transportation recently issued a strategic plan called Moving Forward: A Progress Report. (If Amtrak were to issue a report to its passengers, it could be entitled, “Sorry for the Inconvenience: Due to a Track Incident, We’re Being Held in Baltimore.”)

    Amtrak imagines itself as the federal agency that should be hired to spend $117 billion, over thirty years, to build a segregated high-speed rail system between Boston and Washington, and for additional billions, to operate Core Express Corridors between cities less than 500 miles apart.

    Such visions of grandeur come from a company that needs nine hours and fifteen minutes to run a train the 444 miles from New York to Pittsburgh; that’s an average speed of 48 m.p.h.

    To be fair, not all of Amtrak’s failings are its fault. Most of the tracks on which it operates are owned by freight companies that find passengers a nuisance, and think nothing of shunting aside “the varnish” to send through more coal and containers.

    Amtrak, however, is responsible for a corporate culture that makes a mockery of “customer service.” In many ways, it is the perfect metaphor for everything that is wrong with letting Washington have a heavy hand in the economy, or for imagining that an economic revival can be built around companies with federal guarantees.

    Amtrak lacks direction, lives off subsidies and stimulating money, and now wants $117 billion to operate high-speed rail that, for the cost differential, would be only marginally better than the private bus companies now competing up and down the East Coast, with fares of one third or less than what Amtrak charges.

    Americans would happily pay for low-speed rail, if the food was good, the seats spacious, the broadband fast, and if, on the rails, they could surf, shop, eat tacos, and watch movies.

    At the moment, I am riding an Amtrak train that is four hours behind schedule on its way into North Carolina. So far, to use a phrase from railroading legend, the services have not been worth a “plated nickel.”

    Photo By Kyle Gradinger, Amtrak Keystone Snowstorm I. Amtrak AEM-7 locomotive 904 leads a Keystone Corridor train through the snow in Rebel Hill, King of Prussia, PA.

    Matthew Stevenson is the author of Remembering the Twentieth Century Limited, winner of Foreword’s bronze award for best travel essays at this year’s BEA. Growing up, he was a “Central” man, but loved the majesty of the old Pennsylvania Station. Together with his father, now 91, he recently has waded through a 1969 edition of the ‘Official Guide to the Railways’. He lives in Switzerland.

  • The Overdue Debate: Smart Growth Versus Housing Affordability

    American households face daunting financial challenges. Even those lucky enough not to have suffered huge savings and retirement fund losses in the Great Recession seem likely to pay more of their incomes in taxes in the years to come, as governments attempt pay bills beyond their reasonable financial ability. Beyond that, America’s declining international competitiveness and the easy money policies of the Federal Reserve Board could well set off inflation that could discount further the wealth of households.

    In this environment, the last thing governments need do is to raise the cost of anything. It is bad enough that taxes may have to rise and that a dollar will probably buy less. America’s standard of living could stagnate or it could even decline.

    The Choice: Smart Growth or Affordability

    The Washington Examiner, however, succinctly put the choices that face the nation, states and localities with respect to the largest element of household expenditure — housing. In an editorial entitled “Take Your Pick: Smart Growth or Affordable Housing,” the Examiner noted:

    “No matter how much local politicians yammer about how much they support affordable housing, they are the principal cause of the problem via their land use restrictions, such as the urban growth boundary in Montgomery County and large-lot zoning in Loudoun County.”

    The editorial was in response to our Demographia Residential Land & Regulation Cost Index, which estimated the extent to which the land to construction ratio had risen in metropolitan regions. The principal finding was that the share of land and regulatory costs to new house prices had risen only with the impostion of more restrictive land use policies. This is principally because strategies such as urban growth boundaries, suburban large lot zoning and geographical growth steering (such as allowing state financial assistance only in areas meeting smart growth criteria) makes land for housing unnecessarily scarce, raising its price just as surely as OPEC’s oil rationing raises the price of gasoline.

    Urban planner and mayor of Ventura, California Bill Fulton objected to our attributing these increases to land and regulation, instead suggesting that smart growth increases homes prices much less than we claimed although, he admits, “at least a little“ . The pro-smart growth study Costs of Sprawl — 2000 concedes that a number of smart growth strategies can increase house prices (See Table 15-4). Thus, the debate is not about whether more restrictive land use policies raise the price of housing, but rather by how much.

    More often, however, proponents of more restrictive land use regulations have avoided and even denied that the inconvenient truth linking their policies with higher housing costs. Rarely, if ever, have proponents of such policies fully disclosed to elected or appointed officials that more restrictive land use policies would lead to higher house prices. It is doubtful that any urban planning department ever sent representatives to an NAACP chapter to explain how fewer African-Americans would be able to own their own homes, despite already having a one-third lower home ownership rate than non-Hispanic whites. Similarly, the planners probably never told La Raza chapters that Hispanic households, also with a one third less home ownership rate, would find home ownership more costly. Nor was the message delivered to the religious organizations concerned with improving the standard of living for lower income households.

    Pervasive Evidence

    Yet the evidence that smart growth boost prices substantially seems incontrovertible. An early 1970s research effort led by renowned urbanologist Peter Hall quantified the impacts of the restrictive Town and Country Planning Act of 1947, which brought smart growth measures to England. The result, The Containment of Urban England revealed how strict regulations on development had driven the price of land for development from five to ten times the value of comparable on which development was not permitted, but might be permitted in the future. More recently, Bank of England Monetary Policy Committee member Kate Barker, was commissioned by the Blair Labour government to review housing affordability and land regulation. She attributed England’s more steeply rising house prices relative to continental Europe to its more restrictive land use regulations.

    The same effect is evident in the United States. Dartmouth’s William Fischel noted that California house prices were similar to those in the rest of the nation as late as 1970. By 1990, however, California house prices had escalated well ahead of the nation. Fischel found that the higher prices could not be explained by higher construction cost increases, demand, the quality of life, amenities, the property tax reform initiative (Proposition 13), land supply or water issues. His conclusion was that the expansion of land use restrictions were the culprit.

    Let Them Eat Cake?

    The disregard at least some smart growth proponents show about house prices may be characterized, for example, in a comment on the Planetizen website:

    “… smart growth can lead to more expensive housing. So what? At least it’s REAL value, generated by a higher quality of life, easier commutes, more transit options, walkability and a more enriched cultural experience…” (emphasis in original)

    Perhaps it never occurred to the proponents of more restrictive land use policies that not all households have the benefit of incomes typical of urban planners or new urbanist architects. One has to question the “REAL values” of smart growth since most housing consumers place their highest emphasis on things like privacy, security and good schools, not always available at a decent price in urban areas.

    In fact, higher priced housing reduces the discretionary income that is crucial to an acceptable standard of living to many households. Millions of households will not be in the market for “a more enriched cultural experience” until they can afford the housing they desire.

    Housing Affordability and the Cost of Living

    It is not accidental that the cost of living is higher (both in nominal terms and relative to incomes) in metropolitan regions where land use regulation is the strongest, such as San Diego, Washington-Baltimore, Seattle or Boston. Nor is it accidental that house prices have escalated to 40 percent above historic norms in Portland, Oregon, where planners have skimped on geographical urban growth boundary expansions, choosing instead to look skyward, seeking higher densities. California’s aspiration under Senate Bill 375 for new housing at 20 units to the acre offers a more than Jakarta level of density (residential densities above 30,000 per square mile) that could escalate the unprecedented exodus of people and businesses.

    Higher Housing Costs: The Poverty Connection

    The acknowledged relationship between more restrictive land use regulation and higher house prices also applies to standards of living, which are sent lower, and poverty rates, which must inevitably be pushed higher. This constitutes a second inconvenient truth: as discretionary income drops, more households fall into poverty. This creates a difficulty for proponents of more restrictive land use regulation, because there is no constituency for increasing poverty. It is no wonder they have generally discounted, ignored or even denied the nexus between smart growth and higher housing costs.

    Considering the financial uncertainty American households face, it is long past time that the choice between smart growth and housing affordability be seriously debated.

    —-

    Photograph: “Low density” smart growth development adjacent to the urban growth boundary (Hillsboro) in suburban Portland (by author)

    Wendell Cox is a Visiting Professor, Conservatoire National des Arts et Metiers, Paris and the author of “War on the Dream: How Anti-Sprawl Policy Threatens the Quality of Life”

  • The Other Chambers of Commerce

    The recent political conflict between the Obama Administration and the U.S. Chamber of Commerce has thrown a new spotlight on an old communication problem. Local chambers of commerce, although they predate the U.S. Chamber by nearly a century and a half, often are assumed to be part of the U.S. Chamber, or otherwise under its direction. They aren’t. They are independent.

    During the pre-election controversy this year, it was clear that many people, including many chamber members, did not know this fact. They believe that U.S. Chamber President Tom Donohue and his colleagues on H Street directly or indirectly control all that local chambers do. But Donohue and his staff don’t exercise such control, nor do they want to.

    Few people think about what chambers do locally. For example, who knows that Elliot Tiber, president of the Bethel, N.Y., Chamber of Commerce, secured the permit for Woodstock?

    It was also a local chamber – the Business Men’s League of Atlantic City – that came up in 1920 with the idea of a festival to keep tourists in town after Labor Day. Pretty women in beachwear would turn out to be the centerpiece of the annual event. We have that business group (now called the Greater Atlantic City Chamber) to thank for the Miss America Contest.

    Was Charles Lindbergh’s plane called The Spirit of Enterprise (the U.S. Chamber’s tag line)? No, the flying bucket of bolts was, of course, The Spirit of St. Louis. The president of the St. Louis Chamber came up with the name in order to promote the great river city. And why should Lindbergh object? The chamber president also raised most of the money for the aircraft.

    And who sent out the promotional brochure that enticed the first movie producer to southern California in 1907? It was the Los Angeles Chamber of Commerce. In nearby Hollywood a chamber was later active as well, helping re-fashion the famous Hollywood sign out of a decaying advertisement for a real estate development called “Hollywoodland.”

    Moreover, there’s a guy in a suit present next to the glamorous celebrities who get their photos taken when their stars are set in the Hollywood sidewalk. Who is that business man? It’s Leron Gubler, president of the Hollywood Chamber of Commerce, which invented and maintains the Walk of Fame.

    Most of the thousands of things that local chambers have done and do are far removed from the big national issues that embroil the U.S. Chamber. Sure, most of the chambers in the country agree with and support the lion’s share of the U.S. Chamber’s positions. Although the goals are often the same, the priorities, issues, methods, leadership and, importantly, ownership are not.

    Local chambers have shown themselves perfectly able to get into fights of their own, without orders from a non-existent chamber of commerce command center.

    Was it the national chamber’s president who financed the Florida and Alabama, the ships that terrorized Union merchants during the Civil War? No, it was George Trenholm, one of the most active members of the Charleston (SC) Chamber of Commerce. As president of the chamber, Trenholm had asked for a thorough federal charting of the waterways around the Charleston harbor. The survey provided valuable navigation information that became critical when Trenholm emerged a decade later not only as privateer king of the Confederacy but also as chief sponsor of blockade runners. (Some believe he was a model for Rhett Butler in Gone with the Wind.)

    But it wasn’t as if all chambers were Confederates. It was the New York Chamber of Commerce that furnished a cash reward of $25,000 to the captain and crew of the Kearsarge, which finally sank the Alabama.

    There have been other times when local chambers have performed roles worthy of national headlines. During Prohibition, a liquor wholesaler named Al Capone was seen as bad for business by the president of the Chicago Association of Commerce, Colonel Robert Isham Randolph. In an act of some courage, Randolph personally warned Capone and created a chamber subcommittee, popularly called the “Secret Six,” that engineered Capone’s downfall. The Six hired a consultant named Alexander Jamie to gather information, especially financial information, on Capone. Jamie brought in his brother-in-law, Eliot Ness, to help. Capone later credited the Secret Six with taking him down.

    Of course the local chambers have made their share of mistakes over the years. The St. Louis Chamber of Commerce once tried to stop the first railroad bridge across the Mississippi, but was stymied in court by the common sense and careful research of a folksy lawyer named Abraham Lincoln. And the New Orleans Chamber of Commerce successfully pushed for easing the quarantine regulations on ships in its harbor, after which a yellow fever-laden ship travelled up the Mississippi and nearly wiped out Memphis in 1878.

    But if you take some water and add a chamber, the result can be a megalopolis. Starting in 1840, the Houston Chamber with single-minded determination pushed for the removal of snags and mud from the Buffalo Bayou, which trickled on a circuitous 50-mile path to the sea. In the late 1800s, rain melted the salt on a barge on the bayou, and the Galveston News cackled that Houston finally had a salt-water port. But the laughing stopped on September 8, 1900, when a hurricane flattened Galveston.

    Houston overnight became a critical port for Texas, just in time for the Spindletop oil bonanza of January 10, 1901. The chamber would continue to push for improvements on what became the Houston Ship Channel, guaranteeing decades of future growth. Today, the chamber, now called the Greater Houston Partnership, is anticipating the shipping/economic impact of the opening of the second Panama Canal.

    Some national change in the country’s economic model has sprung directly from the actions of chambers. The Chicago Board of Trade, a chamber founded in 1848, revolutionized how its members bought and sold farm commodities, becoming so successful that by 1859 it essentially left the traditional chamber business. Instead, the Board of Trade continued to plow the virgin soil of this new financial field, inventing futures contracts and modern commodities trading.

    And so it goes. The Birmingham (AL) Chamber of Commerce belatedly, but successfully, broke the power of segregationist Bull Connor and promoted integration of the downtown, while the Atlanta Chamber of Commerce president negotiated the accord that, in a celebrated speech, Martin Luther King defended by saying, “If anyone breaks this contract, let it be the white man.” Segregation, especially racial conflict and the resulting negative publicity, was bad for business, and chambers took the side of peaceful integration in many (although not all) cities throughout the South.

    So much of what we think of as America was facilitated or aided by those often forgotten, always resourceful groups known as local chambers of commerce. Whether it’s the Golden Gate Bridge, Great Smoky Mountains National Park, the statue of Vulcan over Birmingham, commission and city manager forms of government, United Way-style giving, Baltimore’s Inner Harbor, and so much more – it was local chambers that led the way. The U.S. Chamber was fighting for business and free enterprise principles in Washington, but it was local chambers working “on the ground” that helped plant so many of these seeds across the nation.

    Each of the local chambers is vastly smaller than the U.S. Chamber, but collectively they have had a large impact. As in so many things, it has been the local organizations, not merely the national ones, that have shaped this country’s enterprise culture.

    Chris Mead is senior vice president of the American Chamber of Commerce Executives. He is working on a history of local chambers of commerce in the United States.

    Photo by Rob Shenk

  • Car Wars: Should Autos Rule The Road? Part II

    We have a severe drug problem, we’ve been told, that mostly affects suburbanites. The dangerous drug is not taken by mouth, nor by injection, yet it is used daily by every family member and must be stopped before we, as a nation, are utterly destroyed. According to many experts, our “dependence” on cars must stop.

    Internet rumors abound that we are about to be legislated out of our stupor, and be taxed into high density, inner core cities. Should this rumor become fact, let’s look at what effect it will have on our economy, and, quite frankly, on the American Dream of home ownership.

    Today, the housing market is still dealing with the disaster of plummeted prices. Since 80% of the new home market this past decade has been suburban, it would be safe to say that 80% of Americans that bought in this century are the hardest hit, because these new homes have dropped to pre-boom pricing. It has been young families, generally, that have driven out to the suburbs to find new homes, the promise of lower density, and newer safe schools. In addition, many (most) of these families believed that their homes were a source of income; after all, values were increasing 10% or more annually, and that equity could be tapped in loans, (both suburban and urban).

    While many think of the suburbs as pure white, that is no longer true. The suburbs today, in general, are intermixed with all races. But the new race being ridiculed by many is the “suburbanite”. The suburbanite yearning for his or her daily fix of the car, consuming our fuel, and spewing carbon into our atmosphere must be eradicated at all costs.

    So how do we eradicate this vermin? There are rumors of a carbon tax that will place a financial burden on those vehicular junkies. Who cares that this major portion of America’s population is under the most financial pressure since the depression. If we tax these infidels, that will surely bring them to their senses , and we can cure their dependence on Chevys, Fords, and Mini-vans. Let’s break their backs once and for all, so that these families will abandon what is left of the suburbs and be forced back to the inner core. If reason does not work, we can just legislate it.

    Let’s imagine this new future filled with promise of a new America. In this fantasy, we visit the Smith family, who moved from their 10,000 foot suburban lot into the urban core. Adam Smith, the father, now must take the bus to the train station for the new light rail line that goes to Edenville, his job out in the suburb as a plant manager (it seems that his place of employment did not make the move). With connections, he can make it to work within an hour, whereas his 10 mile commute from suburb to suburb took 20 minutes.

    Lilly Smith (his new wife, as the old one refused to move into a 20 story inner city high-rise) works at Bester Buy on the edge of the city. She needs two bus connections to get there Having a car is not an option, since parking costs are prohibitive in the city. Luckily, the kids are old enough to be left alone; Josh is 8 years old, Jane is 12, and Joey, who is 15, watches over the siblings. Today is a holiday and they are home from school, but the cold rainy day keeps them inside, along with hundreds of other kids who play in the vast corridors.

    Lilly arrives at work, only to remember that Jane had a dentist appointment which she forgot about. She shivers, thinking about the old days, and the warm comfort of the Mini-van she once relied on to take her kids to appointments. She breaks out into a sweat and falls into a stupor. Her fellow workers recognize the symptoms, as they too have been weaned of their dependence upon personal vehicles. Her manager, Ralph, lets her take a week of sick leave to get help.

    Ralph is lucky. He lives in a single family neighborhood on the edge of the city. He has his own large lot, a spacious 35 feet wide and 90 feet long. He and his wife each posses a car. His luxury two story home, setback five feet from the sidewalk, is 25 feet wide and 50 feet deep; the house itself is a massive 2,500 square feet, over twice as large as the Smiths inner city apartment. He also has three children who enjoy the privacy of their back yard. The garage adjacent to the 12 foot wide alley consumes 440 square feet of their remaining 1,200 square foot rear yard. Still, with 760 square feet of green space, the kids are lucky.

    Ralph and his wife, Mary, both drive electric cars. Mary has the larger vehicle, with a 50 mile range per charge on a warm day. Their daughter wants to play with a cousin who still lives in the suburbs, 20 miles away. This is a cold day, which reduces the range of the vehicle to 35 miles, and their cousins do not have a charging station, so their 11 years old daughter is driven to the Light Rail station, a mile away.

    A week later, back at the Smith apartment, an argument starts between Adam and Lilly about her desire to get out of the city. Even if they did move out to near Adam’s plant, they would need Lilly’s paycheck to make ends meet, so she would need the light rail and two bus connections to get to work. Lilly begins to sweat and shake again… When Josh asks what is wrong with Mommy, Adam explains about the days when Americans were drugged out on their cars, the days when people were free to go when and where they wanted. As he describes those terrible times, he too yearns for those days. Adam and Lilly dream of moving out to a place with space, if only the carbon tax on moving out of the city could allow it, but alas, it’s only a dream that only the wealthy can now afford.

    A fantasy? Here is what I’m experiencing as a planner. When I met with a city official a few weeks ago I was admonished for a proposal that included attached garages. I explained that attaching the garage reduces 40 feet of exterior wall to be built, and here in Minnesota, an attached garage means you do not have to shovel snow between the home and the garage, nor slip on the ice. Why would I detach a garage, I asked? The city official explained that according to his planning staff, the space between the garage and the home is a social gathering spot where neighbors can stop and talk about their day. I had thought that’s what that large front porch we are proposing on the homes was for.

    There is a movement to prevent the toxic drug — the car — from infecting our lives. For me, no way you are taking me off my ERPT — Extremely Rapid Personal Transport — dependence.

    This is the second of a two-part series in which different authors examined the centrality of the autombile in urban and suburban life.

    Photo by Rick Harrison of the author’s ERPT — his Porsche.

    Rick Harrison is President of Rick Harrison Site Design Studio and Neighborhood Innovations, LLC. He is author of Prefurbia: Reinventing The Suburbs From Disdainable To Sustainable and creator of Performance Planning System. His websites are rhsdplanning.com and performanceplanningsystem.com.

  • Car Wars: Should Autos Rule The Road? Part I

    We’ve decided to become a one car family. Denver has proven to be the ideal locale for this experiment, of sorts. The “Mile High City,” and particularly our new neighborhood, provide a range of mobility options beyond the four-wheel variety for trekking from place to place.

    The metropolitan area is naturally blessed with a mobility-favorable landscape. It is approximately 10 miles by 10 miles. More importantly, our neighborhood possesses what I affectionately refer to as “accessible proximity” to local amenities such as grocery stores, coffee houses, parks, and specialty shopping centers. The immediate area is not only safe, it’s engaging in its physical and social makeup, with stately homes and troves of dog-walkers along suburban style streets.

    Recently, our daughter, who is eight, remarked “Ya know, at our old home it seemed like we always needed a car to go places, while here in Denver, we can actually walk places and enjoy the clean air.”

    The website Walkscore, an online index, which ranks communities nationwide based on access by foot to restaurants, coffee houses, schools, businesses and other frequent destinations. Denver’s score provides tangible evidence of my daughter’s contention: According to the site’s analytics, our Denver address registers a whopping 88 out of 100, defined as ‘very walkable,’ meaning that “one is able to accomplish most errands by foot. Our residence in Folsom, California — from which we recently relocated — stumbled in at a paltry 48 out of 100, defined by Walkscore as ‘car dependent’.

    Why is this such a big deal to us, as well as to growing numbers of Americans? I would contend that it is affordability. As Americans continue to struggle financially amid the worst economic times since the great depression, the argument could be made that location efficient neighborhoods offer a cost effective alternative to those that are exclusively auto-centric. In an era where expenses associated with automobile ownership, maintenance and fuel represent a significant slice of our household budgets, policy makers would be wise to expand options that encourage alternative forms of mobility.

    Automobiles are still the transportation mode of choice for most working commuters, and for good reason, as most Americans still live a reasonable distance from where they work. But alternative forms of transportation are gaining momentum, as many struggle with insurance and other automotive related expenses.

    According to the U.S. Census Bureau’s recently released American Community Survey (ACS), bicycling is becoming a viable option for Americans willing to pump the pedal on their way to work. Portland leads the U.S. in terms of the most bike commuters, with almost six percent of its residents using a bicycle as their primary mode of transportation to work in 2009. Minneapolis (3.86%), Seattle (2.99%), San Francisco (2.98%), and Oakland (2.53%) round out the top five.

    Denver is one of a handful of cities that is actively promoting the use of bicycles as a viable short-run commute option. This year, the city introduced the first large-scale bike-sharing program in the U.S. A partnership between Humana, Trek Bicycle and the advertising agency Crispin Porter + Bogusky, this initiative flows from the shared belief that bicycles should serve as vehicles for positive health and environmental change, as well as important parts of a community’s transportation ecosystem. It’s this latter point that has gained the attention of Denver hotels and the convention center, which are seeking to provide visitors with mobility tools that compliment the downtown’s free bus system and walkable grid.

    The dilemma continues to be how to efficiently travel short distances that are too far to walk. Like Pavlovian dogs, many of us are conditioned to reach for the car keys, even for the shortest of trips. This behavior is deeply embedded in our consciousness;, an auto-centric mindset that has been nurtured in us for years.

    Chris Wiggins of the Folsom, California based Glide Electric Cruiser believes that a huge demand exists for short-range transportation options. His invention is ideal for short commutes and has virtually no impact on the environment. What is it? A series of motorized electric scooters with top speeds of up to 38 miles per hour. Currently in a first production run stage, these “cruisers” have attracted a wide swath of interest, from law enforcement agencies to senior groups. “I personally believe they have the potential to revolutionize short-range commuting in the U.S. and beyond,” says Wiggins. “My greatest hope in developing them is that they will have a meaningful impact on the quality of life, as well as improve the environment.”

    Recognizing that car-based travel will continue to be a reality for most Americans, innovative companies like Zip Car and Car2Go have adroitly positioned themselves for where I believe the auto market is headed: Short-term, just-in-time rentals that eliminate the expense of owning a car. And since my family has only one car, I personally am exploring these and other options to assist with those commutes beyond my immediate, local area.

    There are many factors affect the viability of a mobility option. Density currently receives the greatest amount of air-time. I’m often reminded of a business trip several years ago to the wonderful island community of Bermuda. I was intrigued to discover that because of its dense configuration and its size, cars weren’t allowed on the island until 1946. Today, only residents are permitted to drive cars on the island, and only one car is allowed per household. As Bermuda is a heavily trafficked tourist destination, I wondered what forms of transportation were available. An amused hotel bellman directed me to a lot full of mopeds and scooters.I discovered that these low-power transporters were the predominant form of transportation for residents as well as visitors to the island.

    While it could be argued that population density is the raison d’etre for alternative mobility options, there are other factors that should be taken into consideration. Much talk of late has centered around a concept called “intersection density,” which refers to the number of intersections in an area. The greater the intersection density, the shorter the blocks, and it is these short blocks that are the main contributing factor to neighborhood walkability. In Travel and the Built Environment: A Meta Analysis, which appeared in the summer 2010 issue of the Journal of the American Planning Association, Reid Ewing and Robert Cervero, urban planning academics at University of Utah and U.C. Berkeley respectively, found that of all the built environment measurements, intersection density has the largest effect on walking — more than population density, or distance to a store or to a transit stop, or jobs within one mile. According to the authors, it’s this ease of accessibility that spurs walkable foot-traffic to high destination nodes such as shopping and recreation.

    Density, unfortunately, is often associated exclusively with large urban environments that possess tightly packed, downtown center-cities. This undermines the enormous advantages of many suburban style cities such as Naperville, Illinois; Traverse City, Michigan; and Glenwood Springs, Colorado, all of which offer a plethora of local amenities within walking distance of their adjacent neighborhoods.

    Our deeply ingrained auto-centric habit makes it hard to say if any of these lessons in metropolitan mobility will gain traction, and if so, where they are likely to lead us. But one thing is for certain: A new narrative for how to approach short-distance trips is fostering a debate that is, at the very least, a carbon footprint in the right direction.

    This is the first of a two-part series in which different writers examine the centrality of the automobile in urban and suburban life. Tomorrow, read a very different viewpoint in Part Two.

    Photo by Michael Scott of the author’s Denver neighborhood.

    Michael P. Scott is an associate with Centro, Inc, a Denver-based consulting firm focused on the future of our city centers. He can be reached at michael@becentro.com

  • Livability and All That

    Livability is one of those once innocuous words, like sustainability, that now receive almost unquestioned acceptance in the bureaucracy, academia and the media. After all, words like sustainability and livability have no acceptable negative form. Who could be in favor of anything unlivable, insensitive, unhealthy or unsustainable?

    Back in the late seventies, when I served as Special Assistant for Information Policy in the Office of the Secretary, our shibboleth was “balanced”. Can anyone be in favor of unbalanced transportation? It didn’t matter that the word had no meaning and we couldn’t explain it to others, it still became standard in the rhetoric of secretarial officers. In an unkind moment a reporter asked the present DOT Secretary Ray LaHood what he meant by livable, given that the department had just added it to its criteria for giving away money. He replied vaguely it was something about being able to walk to work and the park and a restaurant, to a doctor and a few more things.

    Well it turns out I was living the livable life style when I was growing up in Queens, New York in the fifties and didn’t know it. Here all along I just thought we were poor.

    Aside from seeking to have the same modal shares of America in 1910, or Tajikistan today, this idea fails on both theoretical and practical grounds. Theoretically, whatever merit the idea might have, livability means very different things in a tenement in Brooklyn, or a place in Billings, Des Moines, or Peoria. I can recall being sent to the store for milk or lettuce by my Mom after school. If I didn’t get there in time the four heads of iceberg lettuce (I was 16 before I found out that there were other kinds) were gone. The milk was “milk”. Today in a supermarket the milk section is bigger than the grocery store I went to as a kid. There’s skim, 1%, 2%, whole, lactaid, acidophilus in quarts, half-gallons, and gallons and 86 kinds of lettuce. The typical market today has above 50,000 items. That means that the market shed for such stores is far broader than it was back in the day.

    We were three generations of the family in the same household and we all had the same doctor who lived two blocks away. Today I don’t have a doctor – I have half a dozen – none of them selected on the basis of distance. When one selects doctors, best, not closest, matters. Hospitals are growing in size but declining in the number of facilities per thousand population. All of this is simply representative of the immense trend towards specialization in our society – an increasing division of labor in all activities and an accompanying division of tastes and preferences in an increasingly affluent society. If you want a loaf of wonder bread there’s a 7-11 down the street; if its ciabatta with sun-dried tomatoes there’s this really great place I know a few miles off of exit 29 on the freeway.

    In today’s job market don’t we expect that people will be willing to go farther to find the job they want or can get? If the average travel time is about 25 minutes and a half-hour commute is acceptable, how long is one unemployed before the acceptable becomes 45 minutes or an hour? In this period of housing constraint in which people are even more locked into their homes by underwater mortgages, the commute will grow as people get desperate.

    In my town of College Point, Queens when the factory whistle blew a few thousand walked in the gate and out again when the whistle blew in the evening. People don’t live outside the factory gate anymore and haven’t for awhile. Again, specialization and division of labor are the main factor. Job groupings are far smaller today, and the rate of job turnover means more people won’t/can’t move every time they change jobs. Moreover, about 70% of workers live in a household with other workers – whose job will they live next to?

    More importantly, the great competitive strength of America lies in access to skilled workers. Employers will be reaching out farther and farther to find the specializations and skills they require. We should expect work trip lengths to grow not become walking trips. It won’t be inner city oriented either. The metropolis of today is of immense size because many employers need a market of hundreds of thousands of potential workers to reach the ones they need. The Atlanta region with 26 counties is not a great economic engine because it is 26 charming adjacent hamlets, but rather because the market reach of employers, suppliers, customers and job seekers spreads over several million residents.

    In this environment it takes massive transportation capability to assure that market shed. The questions are how many potential employees can I reach in half an hour; how many suppliers, how many customers? In the future more of us will be free to live where we want and work where we want. Most will not be willing to trade living floor space for a close-by sidewalk café. Americans will drive to where they want to walk.

    There remains, of course, lots of room now within the existing land use distribution to make it easier for those who wish to live closer to shops, jobs or entertainment. People also are free to go to the nearest store or nearest doctor. The fact that so few do so reflects the oft-forgotten fact that people have their own notions of what is most important. Trying to coerce them to live the way government – particularly the upper bureaucracy – thinks they should live holds many perils. The American people have no obligation to live in ways that make it convenient for government to serve them. Government isn’t smart enough to know how people should live or to order their lives in more “convenient” arrangements.

    On the practical side:

    It’s on the practical side that the concepts of livability really fail. The central failure inheres in what the Europeans call subsidiarity, proposes that any necessary activity of an authority should be conducted by that level of governance closest to the problem that can effectively address it. Having livability rise to become central principle of federal transportation investment planning is an egregious failure in our historical system of decentralized government. If sidewalks and bike paths are federal then everything is federal.

    The mayors of our cities love it. Why not? It is the closest they have come to being able to lay claim to direct federal funding, getting those pesky states and suburban communities where the majority of Americans live out of the way. They see it as finally being their turn at the money from Washington. In these times, when every government level is broke, livability and sustainability can prove a potential lifeline, and a bonanza as well to developers – often themselves subsidized – who focus on the inner city.

    The livability criterion is ultimately centralist: fed-centric. It is not up to local people if they want to densify or not, but real power will rest with a really “smart” guy behind a desk in Washington. Proposals for federal “performance measurement” degenerate into a charade that produces pre-ordained results. Now I can fund my friends, who are as right-thinking as I am!

    The problem here is a total disconnect between what people in a diverse democracy want, and what the central bureaucracy, and their academic allies, wish to impose. The livability agenda may be popular in the press and among pundits, but for most communities and people it’s neither popular nor remotely democratic.

    Alan E. Pisarski is the author of the long running Commuting in America series. A consultant in travel behavior issues and public policy, he frequently testifies before the Houses of the Congress and advises States on their investment and policy requirements.

    Photo by Mastery of Maps

  • The Two Worlds of Buenos Aires

    Central Buenos Aires is undoubtedly one of the world’s great tourist destinations. Days could be spent walking among its narrow streets admiring the plentiful art noveau, art-deco, beaux-arts and other architectural styles. The triumphal Avenida 9 de Julio is one of the world’s widest boulevards with two interior roadways of up to seven lanes and two service roads of two lanes, with a Washington Monument type obelisk at Avenida Corrientes (Top photo). Avenida 9 de Julio is bordered by buildings that are both ordinary and impressive, such as the Colon Opera House.

    There is also an attractive area of redevelopment adjacent to the core in the former dock area, Puerto Madero. The old port buildings have been converted to commercial uses, especially restaurants. A number of high-rise condominium buildings have been constructed beyond the old port basins. Government buildings more than match the commercial architecture, with the National Congress and the Casa Rosada, or “Pink House,” with its balconies from which President Peron and his wife Eva used to address the public (Photo 2). Not more than two weeks ago, former President Nestor Kirchner lay in state to be visited by in an emotional outpouring by hundreds of thousands of Argentineans. The city of Buenos Aires also has a distinctive legislative building (Photo 3).

    These older romantic styles make Buenos Aires a wonderful walking environment. Most were erected in the first three decades of the 20th century. This was Buenos Aires at its zenith. Then, Buenos Aires was capital of one of the world’s acknowledged economic powers. Argentina generally ranked around10th in gross domestic product (GDP) per capita during that period (Note 1). Thus, today, the tourist can enjoy the product of that prosperous time.

    Economic Stagnation: More recent years have not been good to the Buenos Aires area and Argentina. The nation has seen decades of ups and downs – but mostly downs. The nation has been buffeted between constitutional governments and military dictatorships. Too often, even the constitutional governments have placed too little emphasis on creating wealth and too much on redistributing it. A failed currency policy in the 1990s destroyed the savings of millions. All of this has led to Argentina’s migration from the top 10 economies to near the bottom of the top 100, now ranked at 82nd in the world in GDP per capita. No top ten nation from early in the 20th century has fallen so far. New Zealand managed to drop from 1st in the world in 1920 to 51st now, but still has a GDP per capita double that of Argentina.

    Argentina suffered the largest sovereign debt default in world history, at $100 billion in 2002. The nation’s former colonial master, Spain, trailed Argentina in GDP per capita throughout the 20th century to the 1980s, yet is now more than twice as prosperous (Figure 1)

    This economic decline is not so evident in the autonomous city of Buenos Aires, which is also called Capital Federal, analogous to the District of Columbia (DC) in the United States. This is the Buenos Aires of tourists, an area only slightly larger than Washington, DC, but with five times the population. The municipality of Buenos Aires is by far the most affluent urbanization in the nation. Even so, there are informal settlements within the city, such as Villa 31. Overall, approximately three percent of the city’s population is in these kinds of informal settlements.
    BA3-bencich
    Population and Distribution: According to the last census (2001), the city of Buenos Aires had fewer people than in 1947, having fallen from 3.0 million residents to 2.8 million. The city is also very dense, at 35,600 persons per square mile (13,700 per square kilometer), which is about one-half the density of Manhattan or the ville de Paris and double the density of the city of San Francisco.

    Most of the population lives in peripheral areas. This dominant suburban growth pattern is typical of world urbanization, as can be seen in such high-income nation capitals as London, Washington, Brussels, Copenhagen has been in the suburbs. Indeed, all growth in Paris has been in the suburbs since 1881. Like the ville de Paris, the city of Buenos Aires now accounts for less than 25 percent of its metropolitan area population (Figure 2).

    Overall, the urban area (area of continuous development) has nearly 13 million people and covers more than 1,000 square miles (2,600 square kilometers) for a population density of 12,100 per square mile (4,700 per square kilometer). This is 70 percent more dense than Los Angeles and one-third more than Paris but less than one-eighth that of Dhaka (Bangladesh).

    Suburban Buenos Aires: The suburbs of Buenos Aires differ from those in high-income national capitals. Generally, the suburbs are far poorer than the city and reflect the more recently less affluent Argentina that has emerged in recent decades just as the central area testified to the nation’s former relative wealth. All of suburban Buenos Aires is in the adjacent Buenos Aires province, which has the largest population in the nation.

    Some of the suburbs are affluent, especially to the northwest, where suburban municipalities like Pilar and Tigre contain housing that could easily fit in upper middle income suburbs of the United States or Europe. However, even in these areas, there are close-by developments of low-quality and even informal housing, mostly housing domestic employees to the higher income population.

    The suburban poverty is far more pervasive to the southwest and the southeast. Many neighborhoods look similar to modest suburbs in Mexico City, though without the pervasive informal settlements. More people live in informal settlements in the suburbs than in the city, with estimates putting the number at above 500,000.

    More than the Core: Any thought, however, of Buenos Aires being a “compact city” is dispelled by the vast sea of lights visible on an evening flight out of Ezeiza International Airport. The urbanization stretches 30 to 40 miles in all possible directions, to the northwest, southwest and southeast (with the Rio de la Plata being to the northeast).

    However, probably no urban area illustrates the general rule that urban cores tend to be substantially different from their suburbs. Not only is suburban Buenos Aires far less dense, but it is far less affluent. Any who visits the city alone will have missed more than three-quarters of the reality.

    ————

    Note: GDP per Capita data based upon Angus Maddison’s work for the Organization for Economic Cooperation and Development.

    Photos (by the author):
    Top: Avenida 9 de Julio
    2: Casa Rosada
    3: City of Buenos Aires Legislative & Office Buildings
    4: Bencich Building
    5: Casa Borolo

    ————

    Wendell Cox is a Visiting Professor, Conservatoire National des Arts et Metiers, Paris and the author of “War on the Dream: How Anti-Sprawl Policy Threatens the Quality of Life”

  • Asia’s Go-to Cities: Moving Between Mumbai and Singapore

    As someone who has lived in both Singapore and Mumbai, I can appreciate both in their uniqueness. Each city has its own unique place in the world, neither lesser than the other.

    In 2006, I left behind a slightly laid back, well run Singapore, a city trying to come to terms with its boring and over-regulated image. The Singapore of 2010 that I returned to, as a newspaper put it recently, has “grown up‟. It is a speeding, futuristic looking city. You can see signs of progress everywhere and among the people an almost obsessive desire to get ahead. The famed fines and traffic rules are still there, but you can see that the police force has its hands busy with issues that come with a fast pace of growth.

    Surprisingly Mumbai has much in common with Singapore. The India I had left behind was resigned to accept its second rate status in the developing world. Today’s Mumbai has become a city proud of its bustling economy, rearing to get ahead and much like the country, confident of its emergence on the world stage.

    The Immigration issue

    Although very different in their level of development both Mumbai and Singapore are very much ”go-to” cities, places where people believe ”things will get better.”.

    In Mumbai, there is an alluring aura that notwithstanding your education or background, if you were hardworking, you could get lucky. It was an “equal opportunity” city. This attracts opportunity seekers who migrate to the city from other parts of India. They are often seen as undercutting existing employment. This has led to widespread discontent and unrest among the existing unskilled population who have so far been enjoying the fruits of no competition.

    This has long been an issue in Mumbai, but the numbers of immigrants are so large politicians can no longer ignore the issue. Attacks on immigrants are now part and parcel of daily life in Mumbai, directed against fellow countrymen from poorer parts of North India.

    Singapore also faces an immense immigration issue. Many “locals” worry about the growing number of immigrants who have been accepted by the government as either Singaporeans or as permanent residents. The target of discontent could be anyone: the handymen or construction workers brought in from neighboring countries to cater to the booming construction industry or the highly paid executives brought in for their expertise. Of course, unlike Mumbai things never get too out of control. Most of it discontent is spoken quietly among individuals or discussed muted in few newspaper columns.

    Immigrants are a necessity for Singapore, perhaps even more essential than for Mumbai. Inviting foreigners was their way of coping with one of the world’s lowest birthrates and most rapidly aging populations.

    Bread and Butter

    Singapore has never been known for ”cheap food.” The small nation imports almost all of its fresh food produce from neighboring countries driving up prices significantly.

    As a result, food costs are a significant part of my household expenses here in Singapore, much more so than in Mumbai. The tropical temperatures do not allow long storage of fresh produce, enabling frequent trips to the supermarket or wet markets. Food is a very important part of life and a large part of the appropriately named ”cost of living.” Our family of four spends a lot to keep a regular, non-fancy table.

    The fact that I had just moved from Mumbai didn’t help. The diverse income segments and the need to woo them all in a democracy has led to a long tradition of government controlled, subsidized food pricing. Unprecedented inflation has toppled governments. Most importantly, unlike Singapore, the double digit wage inflation is quite ahead of the growth in cost of living, enabling more disposable income. In other words, even with lower tax rates of Singapore, I am outside my home country and poorer for it!

    On the topic of disposable income, families thirty years ago saved bit by bit to get their children married off. A lavish wedding, where you invited all to pay off your social debts was the one dream celebration of an Indian household. A wedding was the social antenna, the marriage bellwether, the occasion to be one up on your entire fraternity. They were occasions to savor and discuss for years to come. Everyone desired to hold/create a wedding for their children/close family that would henceforth be the new standard for weddings to come.

    Increasing affluence has given people the opportunity to make the ”lifetime celebration“ a more frequent affair and what could be a better occasion to show off that income than a birthday party for your little ones? Recently, my six year old was invited to a classmate’s birthday party. Everything about the party, starting from the invite and box of custom made chocolates tells you that no expense had been spared. The bash was at a swanky five star hotel in the suburbs, with two hundred invitees. There were chocolate fountains, different kinds of cuisine and professional entertainment: all elements that are by now mandatory parts of any self respecting birthday party. However, it was the custom labeled return gift, an I-Pod shuffle, which lifted the commonplace ”return gift” to a level significantly above the Joneses.

    Social pressures are similar in Singapore but they manifest themselves differently. The bar is always what you don’t have:,the latest BMW coupe, a condominium at the swankiest address in town, or the latest Louis Vuitton bag. Birthday parties are not the highlights but these acquisitions are.

    Condo-mania

    Every weekend, all Singaporeans indulge in property-porn, poring over newspaper advertisements on new construction openings, walking through the show flats, and marveling at the impressive fittings.

    Four years back, I lived within striking distance of the famous Orchard Road, near enough to walk to it, far enough to breathe. It had several condominiums but was punctuated nicely with green stretches of land. Come 2010, much of the greenery has vanished and been replaced by tall and narrow sky scrapers, most of them glass monstrosities. Many more are similarly taking up every inch of green space.

    Mumbai, like Singapore, is a growing island city where space is at premium. Growth is all vertical. Property prices are high and rising, albeit for completely different reasons.

    Mumbai’s population density of 22,000 people per sq km exceeds that of small Singapore by a factor of three. But the mentality is similar. Owning a place of your own in Mumbai is as much a dream as it is in Singapore. Your “own space“ could be just a small hovel or shanty or a flat in any suburb of Mumbai. The desire to own a place in any part of the city in a market tightly controlled by builders and ineffectively regulated by politicians, ensuring that prices will stay high. A 600 sq ft size of condo, in a distant suburb is priced at between USD$100-120,000.

    Of course, this is out of reach for most of the city’s residents. So most of them plod on, spending a significant part of their incomes squeezed into tiny rented spaces dreaming of a day when they can afford a roof of their own. More than the rentals, most landlords demand a fat lump sum equivalent to a year’s rent, ubiquitously termed ”deposit.” In the absence of any regulation, this safeguards the owner from renters who might refuse to vacate units or destroy and mutilate them. It also benefits the renter, as it sits in the bank for a year and earns interest which – given India’s comparatively high interest rates – is not insignificant.

    On the other hand, 82% of Singaporeans stay in state-provided Housing Development Board flats. What keeps the real estate market fanned and growing is the desire to upgrade; from a rented property to an owned one, from a HDB flat to an executive condominium and from there to a private condominium with its own swimming pool and gymnasium.

    Wherever you turn you can see signs of show flat enticing you to invest more than USD 1 million for a mere 600 sq ft of private condominium space. Since space is at a premium, the buildings get narrower, the units get smaller and prices only go north. Builders try to outdo each other on the concept; enticing buyers with high end kitchen fittings like wine chillers and coffee machines from aspirational European brand names like “Kupperbusch” and “Gaggenau”.

    Most of the investors – Singaporeans and outsiders – have bought property for its appreciation, not to create a source of rental income. Therefore rent is high, averaging USD 3-4 for every sq ft. And you if plan to be here for the long haul, that is a significant part of your income.

    In Conclusion

    Moving between countries is always an enlightening experience. Among other things, it also teaches you to appreciate things about the country you have left behind. When I left Singapore for Mumbai, I took with me an appreciation of systems that work, roads clean enough to eat off and a daily routine that largely remained unchanged for four years.

    On my return to Singapore, I have brought with me memories of a dynamic city, confident that it will only offer a better life to its citizens. I have come from one a growing, global city to another, still unsure of what the implications of that term will be in how people can live.

    Vatsala Pant is a management graduate with several years of business leadership experience and a connoisseur of people, places and cultures. She currently lives in Singapore.

    Photo by a-n-d-y-l-e-o-s-s

  • Greetings From Recoveryland: Ten Places to Watch Coming Out of the Recession

    Like a massive tornado, the Great Recession up-ended the topography of America. But even as vast parts of the country were laid low, some cities withstood the storm and could emerge even stronger and shinier than before. So, where exactly are these Oz-like destinations along the road to recovery? If you said Kansas, you’re not far off. Try Oklahoma. Or Texas. Or Iowa. Not only did the economic twister of the last two years largely spare Tornado Alley, it actually may have helped improve the landscape.

    We have compiled a list of the 10 American cities best situated for the recovery. These are places where the jobs are plentiful, and the pay, given the lower cost of living, buys more than in bigger cities. In other words, places unlike much of the rest of the country. The cities, most of which lie in the red-state territory of America’s heartland, fall into three basic groups. There’s the Texaplex—Austin, Dallas, San Antonio, and Houston—which has become the No. 1 destination for job-seeking Americans, thanks to a hearty energy sector and a strong spirit of entrepreneurism. There are the New Silicon Valleys—Raleigh-Durham, N.C.; Salt Lake City; and urban northern Virginia—which offer high-paying high-tech jobs and housing prices well below those in coastal California. And then there are the Heartland Honeys—Oklahoma City, Indianapolis, and Des Moines, Iowa—which are enjoying a revival thanks to rising agricultural prices and a shift toward high-end industrial jobs.

    Unlike the Sun Belt states and cities along the East and West coasts, these locales not only grew during the boom of the mid-2000s, they suffered least in the Great Recession. The fact that they are mostly in red states should give the newly ascendant GOP comfort as it tries to deliver on its election-year promise to right the economy. That isn’t to say all the blue states will remain weather-beaten. Wall Street, heady with cheap money, has sparked a return to opulence. And the strong demand for high-tech products and services will likely keep places like Boston, San Francisco, and San Diego from devolving into fancy versions of Detroit. Yet given the results of last week’s election and the increasing odds against another bailout of state governments, the near-broke and highly regulated blue states will be hard-pressed to generate much new employment.

    Of course, not everyone living in our Top 10 cities has avoided the heartache. And the continued slow pace of the economic recovery could hamper expansion even in the most-favored cities. If energy tanks as a result of a renewed global slowdown, it could hurt Texas and Oklahoma; dropping agricultural prices would hit some of the Heartland Honeys hard. But relatively—and that is the operative word in this tough economy—our 10 cities should fare better than most anywhere in America. And they could offer us a road map for what the nation’s economy will look like once the dust settles.

    THE TEXAPLEX

    For sheer economic promise, no place beats Texas. Though the Lone Star State’s growth slowed during the recession, it didn’t suffer nearly as dramatically as the rest of the country. Businesses have been flocking to Texas for a generation, and that trend is unlikely to slow soon. Texas now has more Fortune 500 companies—58—than any other state, including longtime corporate powerhouse New York.

    Austin boasted the strongest job growth in our Top 10, both last year and over the decade. Home to the state capital and the ever-expanding University of Texas, the city is arguably the best-positioned of the nation’s emerging tech centers. It enjoys good private-sector growth, both from an expanding roster of homegrown firms and outside companies, including an increasing array of multinationals such as Samsung, Nokia, Siemens, and Fujitsu.

    Yet Austin’s newfound prosperity isn’t simply a product of its university culture or its synergetic collection of technology firms. Its success owes a great deal to simply being in Texas—a state itching to eclipse its historic archrival, the increasingly troubled California. Indeed, Texas is becoming to the Golden State what Arizona, Nevada, and Oregon were in the last decade: a refuge for workers and companies fed up with California’s high unemployment, cost of living, and dysfunctional state government.

    The Texas economy has benefited from widening diversification. Houston has a robust energy business and medical-services industry, and thriving international trade—all long-term growth areas. Dallas enjoys an expanding tech sector and well-developed business-service industries tied to a powerful corporate base. San Antonio has a strong military connection and an expanding manufacturing capacity, and it is a key locale for the growing Latino marketplace. What’s more, Texas offers pro-business policies and relatively low taxes, and the physical infrastructure in the cities is generally as good or better than in many East and West coast metropolitan areas.

    People are voting with their feet. All four Texas cities are enjoying strong immigration from the rest of the country and abroad. Houston and Dallas have higher rates of immigration than Chicago, and if the job picture stays the same, those cities could someday rival New York and Los Angeles in terms of ethnic diversity.

    THE NEW SILICON VALLEYS

    Although Massachusetts and California are lauded as the places “where the brains are,” neither ranked high in the growth of tech jobs over the past decade. More important is where the brains are headed.

    A lot of them are going to North Carolina, Virginia, and Utah. The population of Raleigh-Durham grew faster than any major U.S. metropolitan area during the recession, and the city ranked third on our list in terms of job growth over the last decade. To the north, in Virginia, lies another Silicon Valley wannabe, stretching across Alexandria, Arlington, and Fairfax counties. And then there’s Salt Lake City and its environs, buoyed by the arrival of such big names as Adobe, Twitter, and Electronic Arts. The Greater Salt Lake region, which follows the Wasatch Mountains from Provo to Ogden, has much to attract tech companies: short commutes, decent public schools, spectacular nearby recreation, and, perhaps most important, affordable housing. Roughly 75 percent of households in Salt Lake can afford a median-priced house, as compared with 45 percent in Silicon Valley and roughly half that in New York City and San Francisco. The cost advantages of cities like Salt Lake and the other high-tech hubs are expected to prove especially attractive to millennials—the generation born after 1982—as they begin forming families and buying homes en masse.

    None of these Silicon Valleys may ever reach the critical mass of the real thing in California, but they will become increasingly more effective competitors and take an expanding market share of the nation’s technology business.

    THE HEARTLAND HONEYS

    The oft-ignored center of the country boasts a thriving economy that seems poised for further expansion. The region is well positioned to take advantage of growing markets for agricultural commodities and farm machinery in fast-growing countries such as India and China. The Great Plains and parts of the southern Midwest have also attracted new investments in manufacturing, both from domestic and foreign firms.

    Having largely missed out on the housing bubble, the region also avoided the hangover. As a result, after watching generation after generation move away, several heartland cities are enjoying a noticeable uptick in domestic migration as well as immigration. During the Great Depression, it was Oklahomans who moved to California to escape the Dust Bowl. Now there are considerably more people moving from California to Oklahoma than the other way around.

    Indianapolis, once written off as “Indiana no-place,” is one emerging hotspot. The area’s housing affordability now stands at a remarkable 90-plus percent. Although the recession has hit some of Indiana’s manufacturing-oriented northwest corner, over the past decade Indianapolis’s population grew at a rate 50 percent greater than the national average, notes urban analyst Aaron Renn. Much of this success is due to an aggressively pro-business attitude that promotes growing clusters such as life sciences, motor sports, and Internet marketing.

    Oklahoma City and Des Moines have also enjoyed steady growth in both jobs and net migrants over the past decade. Des Moines was recently rated the No. 1 spot in the country for business and careers by Forbes magazine, thanks to a surging agricultural sector and strength in the business-services segment. And Oklahoma City—which enjoys low unemployment as a result of its steadily growing energy and aerospace sectors—has been ranked among the best job markets for young people, ahead of Dallas, Seattle, and even New York (having Kevin Durant lead the NBA’s Oklahoma City Thunder for the foreseeable future can only improve the buzz).

    Of course, none of the cities in our list competes right now with New York, Chicago, or L.A. in terms of art, culture, and urban amenities, which tend to get noticed by journalists and casual travelers. But once upon a time, all those great cities were also seen as cultural backwaters. And in the coming decades, as more people move in and open restaurants, museums, and sports arenas, who’s to say Oklahoma City can’t be Oz?

    Job Growth
    Net Domestic Migration
    Total 2010
    2009
     
    10yr
    7yr
    2yr
    1yr
    9yr
    6yr
    2yr
    1yr
    Emplymt
    Population
    Northern Virginia 13.8% 11.5% -1.0% 1.2% 12.3 3.2 10.1 8.3 1,309,675 2,558,256
    Raleigh 13.5% 13.7% -4.9% -0.4% 236.7 186.6 47.2 18.4 496,900 1,125,827
    Salt Lake City, Ogden, Provo 7.7% 8.5% -6.7% -1.4% 9.2 15.9 7.4 2.4 961,900 2,227,413
    Austin 14.1% 17.8% -0.9% 1.7% 177.2 136.5 37.3 15.5 768,500 1,705,075
    Dallas-Fort Worth 3.7% 8.1% -3.6% 0.8% 59.3 44.8 14.3 7.2 2,876,925 6,447,615
    Houston 11.7% 10.9% -3.6% -0.5% 51.2 42.9 15.5 8.7 2,518,675 5,867,489
    San Antonio 11.4% 10.8% -2.7% -0.2% 102.1 86.4 21.3 9.3 833,325 2,072,128
    Oklahoma City 4.9% 6.7% -2.2% 1.0% 37.8 32.7 11.6 7.3 561,125 1,227,278
    Des Moines 7.8% 7.4% -3.5% -0.9% 63.6 56.2 14.0 6.1 316,975 562,906
    Indianapolis 1.6% 0.3% -5.5% -0.3% 45.9 34.6 8.0 4.1 870,850 1,743,658
    New York -1.5% 0.3% -4.1% -0.5% -104.7 -82.6 -13.8 -5.8 8,288,300 19,069,796
    Los Angeles -6.2% -5.2% -8.0% -1.0% -107.9 -89.0 -15.7 -6.3 5,118,950 12,874,797
    San Francisco -13.1% -6.0% -8.9% -2.6% -83.1 -57.6 3.4 1.9 1,853,350 4,317,853
    Chicago -8.0% -4.8% -7.4% -1.7% -60.0 -45.8 -8.8 -4.2 4,235,175 9,580,567
    Nation -1.2% 0.4% -4.9% -0.1%   130,690,750  
    Areas are Metroplitan Statistical Areas
    Northern Virginia, Va. includes Arlington, Clarke, Fairfax, Fauquier, Loudoun, Prince William, Spotsylvania, Stafford, and Warren Counties and Alexandria, Fairfax, Falls Church, Fredericksburg, Manassas, and Manassas Park Cities in Virginia.
    Salt Lake City region includes Ogden and Provo Metroplitan Statistical Areas
    Job growth uses May-August average for each year.
    Job data:  U.S. Bureau of Labor Statistics, Current Employment Survey
    Migration data:  U.S. Census Population Estimates.  Migration is cumulative over 10, 7, 2, or 1 yr period.  Number is rate per 1,000 residents in base year.

    —————-

    This article originally appeared in Newsweek.

    Praxis Strategy Group and Zina Klapper provided research for this article.

    Joel Kotkin is executive editor of NewGeography.com and is a distinguished presidential fellow in urban futures at Chapman University and an adjunct fellow with the Legatum Institute in London. He is author of The City: A Global History. His newest book is The Next Hundred Million: America in 2050, released in February, 2010.

    Photo: Jeanette Runyon

  • The Smackdown Of The Creative Class

    Two years ago I hailed Barack Obama’s election as “the triumph of the creative class.” Yesterday everything reversed, as middle-class Americans smacked down their putative new ruling class of highly educated urbanistas and college town denizens.

    More than anything, this election marked a shift in American class dynamics. In 2008 President Obama managed to win enough middle-class, suburban voters to win an impressive victory. This year, those same voters deserted, rejecting policies more geared to the “creative class” than mainstream America.

    A term coined by urban guru Richard Florida, “the creative class” also covers what David Brooks more cunningly calls “bourgeois bohemians”–socially liberal, well-educated, predominately white, upper middle-class voters. They are clustered largely in expensive urban centers, along the coasts, around universities and high-tech regions. To this base, Obama can add the welfare dependents, virtually all African-Americans, and the well-organized legions of public employees.

    These are the groups for whom Obama’s persona and policies pack the greatest appeal. Since Obama took office, the prime beneficiary of fiscal and monetary policies has been Wall Street, which has seen a nice 30% rise in the market and record bonuses. Large corporations, which are largely financed by stocks and bonds, have seen their profits soar over 40%, in part due to access to easy money.

    The financial boomlet is most marked in key creative class strongholds such as Manhattan, Boston and San Francisco, as well as their surrounding, super-affluent suburbs. The largesse benefits not only the traders, but the high-priced lawyers, accountants and publicists serving the financial elite. It has also benefited the high-end consumer industry, including the arts, which support much of the creative class. Not surpisingly, the Democrats scored well in these areas last night despite the GOP tide.

    The creative class also has benefited from the lavish expenditures of public funds to major universities for research. This has lifted the prospects of the professoriate at the elite colleges from which Obama takes much of his advice. Finally the administration has rewarded its friends and funders among Silicon Valley venture capitalists. Once self-described paragons of entrepreneurial risk-taking, they increasingly search out government incentives and subsidies to pay for their large bets on renewable energy technology.

    In contrast, the traditional middle class has not fared well at all. This group consists of virtually everyone who earns the national household median income of $50,000 or somewhat above. They tend to be white, concentrated outside the coasts (except along the Gulf), suburban and politically independent. In 2008 they divided their votes, allowing Obama, with his huge urban, minority and youth base, to win easily.

    Since Obama’s inauguration all the economic statistics vital to their lives–job creation, family income, housing prices–have been stagnant or negative. Not surprising then that suburbanites, small businesspeople and middle-income workers walked out on the Democrats last night. They did not do so because they loved the Republicans but because the majority either fears unemployment or already have lost their jobs. Many were employed in the industries such as manufacturing and construction hardest hit in the recession; it has not escaped their attention that Obama’s public-sector allies, paid with their taxes, have remained not only largely unscathed, but much better compensated.

    Of course, few on the progressive left–more expressive of a dictatorship of the professoriate than that of the proletariat–seem likely to confront these class realities. Many will ascribe last night’s disaster to the dunderheadness of the American people, or to the clever venality of the right. Certainly some tea party candidates, inexperienced and untested, did appear incapable of passing a high school civics test. But the results had less to do with Karl Rove’s money than the Democrats disconnect with the middle class.

    The real problem for the Democrats lies with fundamental demographics. The middle class is a huge proportion of the population. Thirty-five million households earn between $50,000 and $100,000 a year; close to another 15 million have incomes between $100,000 and $150,000. Together these households overwhelm the number of poor households as well as the highly affluent.

    In contrast, the “creative class” represents a relatively small grouping. Some define this group as upward of 40% of the workforce–largely by dint of having a four-year college degree–but this seems far too broad. The creative class is often seen as sharing the hip values of the Bobo crowd. Lumping an accountant with two kids in suburban Detroit or Atlanta with a childless SoHo graphic artist couple seems disingenuous at best. In reality the true creative class, notes demographer Bill Frey, may constitute no more than 5% of the total.

    At the same time, this affluent constituency may be more than offset by another more traditional upper class. This consists of people closely tied to such basic sectors as agriculture, fossil fuel production, suburban home-builders and the aerospace industry. These voters have, for the most part, remained solidly Republican for generations, and but many followed the “creative class” into the Democratic Party in 2006 and 2008. Last night this part of the upper class shifted back toward their political home.

    But the real decider–to use George W. Bush’s unfortunate phrase–remains the much larger, more amorphous middle class. Given the economy of the past two years, the subsequent alienation of this group should pose no mystery. Suburban swing voters didn’t suddenly turn into racists or right-wing cranks. Instead they have seen, correctly, that Obama’s economic policy has to date worked to the advantage of others far more than themselves or their families. Until the Democrats and Obama can prove that they once again can serve the interests of these voters, they will continue to struggle to recapture the optimism so appropriate two years ago.

    This article originally appeared at Forbes.com.

    Joel Kotkin is executive editor of NewGeography.com and is a distinguished presidential fellow in urban futures at Chapman University. He is author of The City: A Global History. His newest book is The Next Hundred Million: America in 2050, released in February, 2010.

    Photo by World Economic Forum