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  • Americans’ Family Feud

    In this bizarrely politicized environment, even the preservation of the most basic institution of society – the family – is morphing into a divisive partisan issue. Increasingly, the two parties are divided not only along lines of economic and social philosophy, but over the primacy of traditional familialism.

    Increasingly, large portions of the progressive community are indifferent or hostile to the idea of the nuclear family, while many on the right argue that it’s key to a Republican revival. Observers such as the Weekly Standard’s Jonathan Last see familialism as key to the demographically challenged GOP. “Start a family, vote Republican,” he suggests. Long-term, Republicans can look forward to the rise of what New York Times columnist David Brooks cleverly calls “red diaper babies.”

    In the long term, the logic seems impeccable. Salt Lake City is creating a new generation of what may tend to be more conservative voters; when San Francisco’s largely single and childless populace passes, their legacy ends with them – game over. Indeed virtually all areas of the country with the fastest projected growth in households are located in red states. Houston, Atlanta and Dallas are expected to add more households than true-blue New York City, Los Angeles or Chicago. New York, California and Illinois are losing children as a share of population, while deep-red Texas, Utah, Idaho, as well as Nevada, have increased their tyke population.

    Others on the right take a more racially oriented tack. Linking lower fertility rates, particularly among Caucasians, Pat Buchanan warns of “the end of white America.” Steven Sailer, a staunchly anti-immigrant conservative theoretician, links Republican fortunes to “white fertility rates,” pointing out where whites choose to have children, particularly those who are married. George W. Bush, Sailer points out, won all 19 states with the highest rates of white fertility, as well as the 25 states where white women have been married the longest, on average.

    This politicization threatens the building of a broad consensus on how to promote the family. The related issue of America’s sagging birth rate – the lowest since the 1920s, by some measurements – should not be seen as a matter of political expediency but as an existential issue concerning the health of society and the long-term prosperity of the United States. No matter what happens with immigration, minorities are going to be a growing portion of our population and will soon represent the majority of children. Unless conservatives seek to secede and form their own Republic, they need to favor familialism among all ethnic groups.

    Yet for now, partisan concerns remain primary, and are compelling, if for narrow, political reasons. In the past two national elections, the differences in voting patterns between married couples and those who are not has become obvious. Democratic pollsters like Stan Greenberg now hail single women as “the largest progressive voting bloc in the country,” Ruy Texeira, a leading political scientist, calls singletons critical to the “emerging Democratic majority.”

    The mainstream “progressive” view on families can be seen in the “Life of Julia” slideshow produced last year by the Obama campaign and designed to appeal to single, unmarried women. In this rather pathetic portrayal, the fictional Julia is helped by federal programs from early in life. When she finally “decides to have a child,” it’s on her own, a sort of an immaculate conception since no man seems to be involved. Then, her offspring is sent off to federally funded early childhood education programs and never heard of again.

    Out of fashion

    Familialism is deeply unpopular with many in two key Democratic constituencies – greens and feminists. Many feminists have long derided the traditional family and see child-raising as something that tends to reinforce sexual stereotypes by reducing the career prospects of women.

    For their part, greens often disdain familialism since they see extra humans as a threat to the environment. The notion that depopulation, and too-rapid aging, at least in higher-income countries, could well become a greater issue than growth seems not to have sunk in, yet. Instead, people like Lisa Hymas, with the environmentalist website Grist, suggest that the “childfree” are something of a persecuted group that are in need of more societal understanding. Environmentalists also tend to be in favor of slow economic growth, which, in turn, tends to further depress birth rates.

    These worldviews represent a break from the progressive politics of the entire era stretching from Teddy Roosevelt to Bill Clinton. In the past, the basic emphasis has been to make families stronger by backing such institutions as public schools and parks, as well as creating the basis for broad-based economic growth. Support for single-family homes that most families require was part of this.

    But today, many “progressives” disdain the suburbs, which were built largely with the help of New Deal and successor programs. Now, most planners, according to the American Planning Association survey, believe accommodating families is simply not worth the cost of the services, notably schools, that they engender.

    Rather than looking at housing that fits families, many progressives now want to promote an urbanism that has little place for families. Some real estate sites, such as Estately, rank cities not by being child-friendly, but those most accommodating to the “childfree” – reminds me of gluten-free – a term which for some reason is deemed preferable to childless. Virtually all cities so ranked, such as ultralow-fertility San Francisco, Portland, Seattle, New York and Madison, Wis., are all places that increasingly are Republican-free as well.

    Most still want kids

    Since most people, including millennials, likely will choose to have children – and settle in suburbs – embracing familialism does offer an opportunity for conservatives and Republicans. Most millennials, note generational chroniclers Morley Winograd and Mike Hais, place high priority on being good parents and having a strong marriage.

    The potential political benefit, however, is being squandered by profamily activists who tend to focus on a Manichean worldview that sees anything other than traditional arrangements as inimical to core religious values about what is defined as a “natural family.” Rather than try to accommodate modernity, many family activists contend, as one leader told me, that we need to “march back to the ’50s.”

    Unfortunately for more hard-line social conservatives, history may go in waves, with each shift engendering a reaction, but it does not generally go backward. To remain relevant, and not to, so to speak, throw the baby out with the bathwater, some agenda items need to be laid aside. This is particularly true on issues such as gay marriage, where millennial opinion is shifting toward ever-greater acceptance, with roughly two in three in favor. By forcing allegiance to increasingly unpopular views, social conservatives are in danger of losing touch with the next generation.

    At the same time, many conservatives are so wedded to the market economy as to ignore the negative pressures on family formation imposed by our relentlessly competitive society. Some thought has to be given to mechanisms – such as free or subsidized child care and extended parental leave – that might make it easier for young families to survive, particularly in tough economic times. Conservatives, if they value family, should look at ways to support them, even if, sometimes, it’s done through government.

    In the end, the issue of family is too important to leave to the mercilessness of narrow partisan political forces. The country – and its future generations – needs both parties to focus not just on pro-family rhetoric, but on how we can make it easier for young people both to create, and nurture, the next generation.

    Joel Kotkin is executive editor of NewGeography.com and Distinguished Presidential Fellow in Urban Futures at Chapman University, and a member of the editorial board of the Orange County Register. He is author of The City: A Global History and The Next Hundred Million: America in 2050. His most recent study, The Rise of Postfamilialism, has been widely discussed and distributed internationally. He lives in Los Angeles, CA.

    This piece originally appeared at The Orange County Register.

    Baby photo by Bigstock.

  • History, Landscape, Beauty on the American Freeway

    Freeways, particularly urban freeways, have had a bad press for several decades now.  They are accused of despoiling scenery, destroying habitat and causing urban sprawl.  Many observers report with glee on the latest news of a small segment of urban freeway being dismantled.

    This blanket condemnation makes it easy to overlook the remarkable contribution that these freeways have made to the American economy and to American culture.  It is hard to imagine the growth in productivity in the country during the postwar years without these roads, which vastly increased the mobility of goods and people and connected parts of the country together in ways that were unprecedented.

    The constant criticism also makes it difficult to appreciate these roads as cultural artifacts and a wonderful way to see the country.  This is all the more surprising since Americans in recent years have been discovering the rich legacy of our nation’s highways. There has been spate of books that celebrate travel on America’s pre-freeway-era highways. Many authors wax eloquent over the remaining motels, fast food restaurants and drive in theatres along US 66 or advise motorists on finding abandoned segments of roadway by passed by later highway alignments.   There has also been a remarkable surge of interest in America’s parkways, from the earliest parkways like the Bronx River Parkway in Westchester County New York, started in 1907, to parkways at the end of the parkway era in the years immediately before and after World War II when they gradually became more like freeways, for example the Arroyo Seco Parkway in Los Angeles, or the later segments of Lake Shore Drive in Chicago, the Taconic Parkway in New York State or the George Washington Parkway outside Washington.   

    America’s postwar freeways merit a similar rediscovery.   I think that one of the biggest obstacles to appreciating them has been a question of scale.  Driving along a two-lane roadway it is possible to pull off the pavement and look at an historic courthouse or a particularly interesting agricultural landscape or early gasoline station. That is not possible on a freeway. It is also true that the engineers who designed the nation’s postwar freeways were probably less conscious of the aesthetic dimensions of the roadways than the designers of the German autobahn, who set a standard for integration of landscape and roadway  never surpassed, or American designers like landscape architect Gilmore Clarke who played important role in designing the parkways of metropolitan New York.   There is, moreover, no doubt that the push to accommodate increasing traffic loads and to make freeways safer in this country has led to a certain uniformity of standards that some people find boring.  Finally, the proliferation of sound walls over the last few decades all too often makes driving through urban areas like driving through a tunnel. 

    Still, there is no better way to get a good view of the larger features of the American landscape or cityscape than looking through the windshield of an automobile rolling along a freeway at 65 miles per hour. At that speed it is often easier than on a slower road to appreciate the changes that occur in plant species as the highway climbs a steep ridge or to appreciate the way massive cuts to lower the grades on the climb over a hill that provide a graphic illustration of the underlying geology.  It might be difficult for many people to appreciate long stretches of flat country but, if a driver can put herself into the proper frame of mind, this experience can have its own rewards because of the way it accentuates the scale of the landscape. Even the billboards, which many drivers consider simply objectionable intrusions into the natural landscape, can, by their style and content, illustrate a great many regional differences.

    And fortunately, there has been over the last two decades a growing recognition of the aesthetic dimensions of freeways.   In some ways this marks a reversion to ideas that were common in the parkway era when there was almost always a conscious attempt to integrate road and landscape into a successful composition reflecting  the landscape and culture of the region through which it passed. 

    A pioneer postwar example of this push to bring conscious aesthetic design to the freeway can be seen in I-280, the Junipero Serra freeway, which runs between San Francisco and San Jose.  Here the engineers worked with Lawrence Halprin, the landscape architect, and architect Mario Ciampi to create a road that was widely considered the “most beautiful freeway in the world” when the initial segment was opened in the 1960s.  This highway, with its careful alignment, minimizing cut and fill, and the bold, sculptural concrete overpasses does little to diminish the spectacular landscape of the San Francisco Peninsula.  In fact it affords a wonderful way to experience the golden hills on one side of the roadway and the coastal range on the other, often seen in the morning or late afternoon with fog pouring over the crest.

    In recent years the highway departments in an increasing number of American states have attempted to be more attuned to the aesthetic dimensions of freeways and of the places through which the roads run.   Wildflowers now bloom in medians and margins of a great many American freeways.   In arid landscapes engineers and landscape architects have worked to preserve native plants and use them as elements in a kind of idealized desert landscape in the median and along the berms.    In one of the most impressive achievements, a twelve mile stretch of I-70 passing through the tortuously narrow Glenwood Canyon west of Denver, opened in 1992, the designers went to great length to fit the roadway into the landscape in the least obtrusive way possible.  They accomplished this by splitting the roadway alignments, reducing the section of the roadway structure to a minimum, cantilevering both alignments from the canyon walls to reduce their bulk, pushing tunnels through the most difficult spurs of land and even treating the rocks that were scarred by excavation so they would not produce jarring juxtapositions.

    Even the urban freeway, target of the most vociferous criticism, offers interesting perspectives for those willing to look.  Unlike the case in much of Europe, where planners have often attempted to create a parkway-like driving experience by providing a wide buffer between the roadway and nearby urban areas and tightly restricting new development along the highways, American freeways have become the new main streets of many cities.  Driving along the ring roads around American’s large cities can offer some of the most compelling views of these metropolitan areas. For the motorist driving along I-80, the Ohio Turnpike, there is the view from the giant viaduct crossing the Cuyahoga River.  There, 20 miles to the north, up the heavily wooded deep gash created by the river, the gleaming tip of the Key Bank Building peaks out  above the intervening ridges in clear weather, unfortunately all too rare in Northeast Ohio.  Likewise, very few urban views can compare with the panorama that suddenly unfolds for motorists as, emerging from I-376’s Fort Pitt Tunnel under Mount Washington, they suddenly burst out onto a bridge over the Monongahela River and a view of the Golden Triangle and the entire skyline of Pittsburgh. 

    A drive along a city’s freeways is often the best way to get a good grasp of a region’s economic geography.   It would be hard to miss the contrast between the view from the Indiana Toll Road across the grimy industrial landscape of steel mills and refineries just east of Chicago, on the one hand, with the landscape of heavily planted berms and expensive new houses along the Tri-State Expressway in the north suburbs.

    Many of the earliest freeways have crossed the 50 year threshold and deserve a closer look as some of the country’s most important historical and cultural artifacts.  And they provide a wonderful way to observe America’s landscape and cityscape.

     


    Taconic State Parkway north of New York City.  The New York area had the first and largest set of parkways in the nation.  The Taconic, running along the Taconic Mountains from the Kensico Dam in Westchester County to Chatham near Albany, was not finished until 1960, but it maintains the earlier parkway standards rather than those of the later freeway era.   Because of its careful alignment and roadway design by landscape architect Gilmore Clarke and the beauty of the rugged countryside which it runs, it remains one of the country’s great driving experiences.

     


    I-280, Junipero Serra freeway, south of San Francisco.  Although a much wider highway than the prewar parkways, this road, constructed in the 1960s, maintains much of the feel of the earlier parkways though the use of alignments carefully fitted into the rolling hills, integrating the road beautifully into the spectacular landscape of the San Francisco peninsula.    

     

    I-20 east of Birmingham Alabama.  The undulating line that marks the edge of the pine forest and the beginning of the mowed grass in the freeway margins recalls the long curving vistas of English 18th century picturesque landscape tradition. On an overcast morning the resemblance to the British landscape tradition is particularly striking.

     


    I-10 and I-215 at Colton, California.   No place in the United States is so associated with freeways as the Los Angeles region, but actually this region has fewer lane miles of freeway than most large American metropolitan areas.  Because freeway construction pretty much stopped in the 1970s but the population continued to grow and the density rose, this region has some of the most congested roads in the country.  If there is any consolation, they offer some remarkable displays of engineering bravado and urban intensity.

     


    I-70 west of Denver, Colorado.  The construction of this roadway through the Glenwood Canyon in the Rockies is both an engineering feat and an aesthetic tour de force.  By separating the alignments and cantilevering the roadway from the canyon wall, the designers were able to minimize the visual impact of the road and provide spectacular vistas for travelers.

    US 75 approaching downtown Dallas.  This short piece of roadway completes a loop around downtown Dallas that allows two interstate roads to bypass downtown.  A drive around the loop provides a kaleidoscopic sequence of views of tall buildings and a highly effective orientation to downtown Dallas.


    I-10 east of Blythe Arizona.  Perhaps even more than in the East, the great distances of the American West make the freeway a lifeline for residents who live far from population centers.  The smooth roadway makes a striking contrast with the great rock outcrops and vast stretches of scrubland.

     

    I-80 and I-94 Pennsylvania Turnpike north of Pittsburgh.  The era of the parkway ended at about the time of the second world war as a new generation of freeways started to emerge.  One of the interesting features of the interstate system today is the way it provides testimony to the shifting ideals of roadway design.  Although large stretches of the Pennsylvania turnpike, whose initial segment opened in 1940, have been upgraded, the narrow right of ways and steep gradients of the older portions of the road as well as the streamlined design of the overpasses recall the transition from one age to the next.

     


    I-20 between Covington and Augusta Georgia.  A classic piece of interstate road with the smooth ribbon of pavement gliding effortlessly through a landscape of low hills and dense forest.


    I-10 west of downtown Phoenix.  The state of Arizona has been particularly active in trying to create an appropriate landscape for the state’s highways.   They have pioneered techniques for saving cacti and other native species in the path of the roadway and then re-installing them alongside the new roads to create an idealized desert landscape.


    I-10 approaching downtown Los Angeles, California.  The advent of sound walls has changed the driving experience in some profound ways.  In places it has severed the visual connection between the roadway and the city around it.  On the other hand, in some places, as here, when vines and other plants grow up over the walls and trees overtop them, the result is a curious but not entirely unpleasant sensation of floating through a city without being part of it.  Until the traffic backs up, of course.

     


    I-27 between Amarillo and Lubbock, Texas.  The long flat stretches of the Llano Estacado of northwest Texas produce an almost hypnotic effect.  Even highway signs and telephone poles take on a monumental character, and train elevators loom up in the distance like the skyline of a great city.

     

      

    I-70 in eastern Utah.   Although freeways can seem intrusive and over-scaled in the city, they are often dwarfed by the huge open spaces in states like Utah or Nevada.

     


    I-5 south of Longview, Washington.   A trip across the country on the interstate roadway system allows for a panoramic view of the regional differences between, for example, the flat, semi-tropical landscape of central Florida and the deep green evergreen forests of the Pacific Northwest.

     


    State route 99, the Alaskan Way Viaduct, downtown Seattle.   Completed in 1953, this roadway, this roadway like a number of freeways built in the heart of American cities, created a barrier in the city.  Some of these highways, for example the Central Artery in Boston have been relocated underground. In other cases, like the Embarcadero Freeway in San Francisco the replacement was a surface boulevard.  In this case, after a considerable debate, officials made the decision to create a massive tunnel.  It is difficult to argue that a road like this should be preserved, given its structural problems and the way it cuts off Seattle from its waterfront.  Still, it is almost inevitable that some of the drivers navigating the new tunnel will keenly miss the spectacular urban spectacle that unfolds today as they sweep along the viaduct.

    Robert Bruegmann is professor emeritus of Art history, Architecture and Urban Planning at the University of Illinois at Chicago.

  • Suburb Hating is Anti-Child

    Sure, suburbs have big problems. Their designs force their inhabitants to drive in cars, instead of walking and bicycling. This diminishes face-to-face interactions, physical health, and the quality of the environment. Aesthetically, many of them, particularly those dreaded “planned communities,” are quite boring. People who live there tend not to have much contact with people who aren’t like them, so suburbs reinforce racial, religious, and class segregation.

    A large proportion of intellectuals and politicians, including President Obama, decry these problems with suburbs as reason to hate them and advocate for their elimination, in favor of dense, big cities.

    Yeah, I get it. I agree that all these problems exist, and they bother me a lot.

    There’s just one big problem with suburb hating. The alternative to suburbs in metropolitan areas, cities, are much worse for children. Sure, adults can have a great time in hip, dense city centers like Manhattan or San Francisco. In fact, if my wife and I never had kids, we’d still be living in San Francisco, going out practically every night.

    However, it’s clear that cities are worse for kids than suburbs.

    Why do I say this?

    First, just look at where newly married urbanites choose to live once they have children. They leave cities in droves. The hipper and denser the city, the more likely are parents to flee to the suburbs.

    20-29_table

    Richard Florida made his name over a decade ago writing about how cities should attract the “creative class” – a code name for childless urban hipsters. In his book, Who’s Your City?: How the Creative Economy Is Making Where to Live the Most Important Decision of Your Life, he lists cities he thinks are best for different groups of people. The table here shows the percentage of total population in the United States that is school-aged children (age 5-17) versus that for large cities that Florida lists as best for 20-29 year-olds.

    The only two cities that are even close to the national average of 17.5% are Los Angeles and New York. Los Angeles covers an awful lot of land area, and I suspect that if I could get data for what Florida really means by “Los Angeles,” the percentage would be much lower.

    NYC_boroughs

    New York is also quite large and diverse, but there, fortunately, I have data for what Florida really means by “New York.” I’m sure he’s thinking of Manhattan when he thinks of “creative class.” There, as you can see on the table here, Manhattan’s percentage of the population that is school-aged is 11.8%, far below the national average.

    In her suburb-hating book, The End of the Suburbs: Where the American Dream Is Moving, Leigh Gallagher gushes that Manhattan “has become overloaded with families.” To back up this assertion, she points to US Census data that there were 2,600 more married families with children 0-18 in 2010 than in 2000. Actually, that’s unimpressive for two reasons. First, the census data show that Manhattan’s total population actually increased by more than the population of children, so children as a percentage of the total population actually dropped. Second, even if the percentage of children had increased, the 11.8% figure for school-aged children is horrifically low.

    The New York Times contributed to this gushing sentiment for children in Manhattan in a 2005 article. It pointed to a small surge in children under 5 in Manhattan’ census data between 2000 and 2004. Unfortunately, this trend did not extend to school-aged kids.

    This disparity hints at the major reason why families leave big cities: public schools in large cities are, by and large, awful. So, for the most part, families that have the means to move out of cities when their children reach school age flee to the ‘burbs. Most middle and upper-middle class families that do stay send their children to private schools. 30% of San Francisco children go to private schools, and my guess is that the figure for Manhattan and other dense, hip urban centers is close to that.

    So, to some extent, when you hear people complain that cities are too expensive for families, they are calculating private school into the cost of living there.

    But private schools not only cost a lot of money. They also destroy neighborhood life for children. In big city neighborhoods where many or most children go to private schools, children who live on the same street hardly know each other because they tend to go to different schools that their parents choose.

    Beyond running bad schools that force families with the means to go to private school, some big city school systems put the final dagger into neighborhoods by forcing or enticing children to go to a school outside their neighborhoods.

    For example, San Francisco has done this for decades in an effort to forcibly integrate students of different races and backgrounds, but instead, what it’s done is destroy neighborhoods and push more families into private schools than any other city in America. In the last year or two, that city has made a small change in its policy in an apparent effort to make it more possible for children to go to school in their own neighborhood, but this change hasn’t gone nearly far enough to pull neighborhoods together.

    So, big cities are left with neighborhoods where children spray out to all parts of the city to go to school every day. When school’s over at the end of the day, playing in their neighborhoods isn’t an option because children there don’t know one another.

    The families that do flee for the suburbs leave a diverse place where parents like them have a small amount of political power and huge teachers’ unions dominate, to a more homogeneous place where most residents are like them, in terms of socio-economic status, and parents wield great power over schools. Left behind are the less fortunate kids, with their families.

    The other primary problem that families have with cities is space. Yes, while it’s trendy these days for urban planners to advocate for dense development, families with children flee from density. Every large city in the United States that has high density – including those in the Richard Florida list above and other dense cities like Miami and Philadelphia – have very low percentages of school-aged children.

    To put it simply, play requires space. If all kids have outside their crowded apartment building is a sidewalk, they can’t play a game of soccer, nor can they play even less formal games like hide and seek or tag. Also, sidewalks are a lot less complex, and therefore they’re a lot more boring for kids, than yards that have grass and bushes with hiding spaces.

    As Richard Louv writes so eloquently in his book Last Child in the Woods, children really do love being in nature. They’re drawn to play among trees, bushes, grass, and creeks rather than sidewalks and brick walls.

    Those who tout the attractiveness of city life for children always cite the importance of public parks. Parks are great for families that live right next to them, but unfortunately, we’re never going to put a park in every other block. The fact is that children don’t roam very far on their own these days. In fact, most preteen children don’t roam on their own more than a few feet from their front doors, whether those front doors are to their single family homes or to their apartment buildings. So, parks are of very limited use, even to most city dwellers. While kids and caregivers go there together, kids hardly every go there on their own to play freely.

    Clearly, children can get a great deal of value from a yard outside a single family home, which is one important reason why so many families aim to move to the suburbs. Yes, most families don’t exploit their yards nearly enough once they move there, but that’s a problem with how families live in suburbs. It’s not a blanket condemnation of suburbs.

    So, we need to fix suburbs and the way families utilize them. They should be far more pedestrian friendly, and not favor cars so much. Residential yards should be used as social hangouts, not merely admired from afar for their manicured shrubs and flower beds. I’ve written a great deal about these fixes on my blog and in my book Playborhood.

    But what we shouldn’t do is try to force families to live in dense city centers. Most families don’t like it there, with good reason.

    Suburb hating hurts children. Politicians who advocate anti-suburb policies are hurting children. They are, dare I say, anti-child.

    Mike Lanza is author of the parenting book Playborhood: Turn Your Neighborhood Into a Place For Play, and blogs at Playborhood.com.

    Suburbs photo by Bigstock.

  • A Map Of America’s Future: Where Growth Will Be Over The Next Decade

    The world’s biggest and most dynamic economy derives its strength and resilience from its geographic diversity. Economically, at least, America is not a single country. It is a collection of seven nations and three quasi-independent city-states, each with its own tastes, proclivities, resources and problems. These nations compete with one another – the Great Lakes loses factories to the Southeast, and talent flees the brutal winters and high taxes of the city-state New York for gentler climes – but, more important, they develop synergies, albeit unintentionally. Wealth generated in the humid South or icy northern plains benefits the rest of the country; energy flows from the Dakotas and the Third Coast of Texas and Louisiana; and even as people leave the Northeast, the brightest American children, as well as those of other nations, continue to migrate to this great education mecca.

    The idea isn’t a new one – the author Joel Garreau first proposed a North America of “nine nations” 32 years ago – but it’s never been more relevant than it is today, as America’s semi-autonomous economic states continue to compete, cooperate … and thrive. Click on the thumbnail of our map to see our predictions for the job, population and GDP growth of these 10 regional blocks over the next decade, and read on below for more context.

    View the map graphic at Forbes.com.


    INLAND WEST

    The Inland West extends from the foothills of the Rockies to the coastal ranges that shelter the Pacific Coast. This is the West as we understand it historically, a land of spectacular scenery: icecaps and dry lands, sagebrush, high deserts and Alpine forests. From 2003 to 2013, it enjoyed the most rapid population growth in the nation: 21%. It is expected to continue to outgrow the rest of the country over the next decade, as the area boasts the highest percentage of young people under 20 in the U.S.

    Much of this growth was driven by a combination of quality of life factors — access to the outdoors and relatively low housing prices — as well as strong economic fundamentals. Over the past decade the area has enjoyed nearly 8% job growth, the strongest in the country, with the highest rate of STEM growth in the nation over the past decade.  Boise, Denver and Salt Lake City have posted stellar employment growth due to the energy boom and growth in technology. The western reaches of the region — the inland parts of Washington, Oregon and California — have not done as well. These areas suffer from being “red” resource- and manufacturing-oriented economies within highly regulated, high-tax “blue states.”

    THE LEFT COAST

    The Northeast may still see itself as the nation’s intellectual and cultural center, but it is steadily losing that title to the Left Coast. This region sports a unique coastal terroir, with moderate temperatures, though it may be a bit rainy in the north. The climate requires less power than elsewhere in the country for heating and air-conditioning, making its residents’ predilection for green energy more feasible.

    Over the past 20 years, the Left Coast — the least populous nation with some 18 million people — has rocketed ahead of the Northeast as a high-tech center. It has by far the highest percentage of workers in STEM professions — more than 50% above the national average — and the largest share of engineers in its workforce as well. No place on the planet can boast so many top-line tech firms: Amazon and Microsoft in the Seattle area, and in the Bay Area, Intel, Apple, Facebook and Google, among others.

    Over the next decade, the Left Coast should maintain its momentum, but ultimately it faces a Northeast-like future, with a slowing rate of population growth. High housing prices, particularly in the Bay Area, are transforming it into something of a gated community, largely out of reach to new middle-class families. The density-centric land use policies that have helped drive up Bay Area prices are also increasingly evident in places like Portland and Seattle. The Left Coast has the smallest percentage of residents under 5 outside the Great Lakes and the Northeast, suggesting that a “demographic winter” may arrive there sooner than some might suspect.

    CITY-STATE LOS ANGELES

    Once called “an island on the land,” southern California remains distinct from everywhere else in the country. Long a lure for migrants, it has slipped in recent decades, losing not only population to other areas but whole industries and major corporations. The once-youthful area is also experiencing among the most rapid declines in its under-15 population in the nation. Yet it retains America’s top port, the lion’s share of the entertainment business, the largest garment district–and the best climate in North America.

    THE GREAT PLAINS

    The vast region from Texas to Montana has often been written off as “flyover country.” But in the past decade, no nation in America has displayed greater economic dynamism. Since the recession, it has posted the second-fastest job growth rate in the U.S., after the Inland West, and last year it led the country in employment growth. The Dakotas, Nebraska, Oklahoma and Kansas all regularly register among the lowest unemployment rates in the country.

    The good times on the Plains are largely due to the new energy boom, which has been driven by a series of major shale finds: the Bakken formation in North Dakota, as well as the Barnett and Permian in Texas. The region’s agricultural sector has also benefited from soaring demand in developing countries.

    Most remarkable of all has been the Plains’ demographic revival. The region enjoyed a 14% increase in population over the past 10 years, a rate 40% above the national average, and is expected to expand a further 6% by 2023, more than twice the projected growth rate in the Northeast. This is partly due to its attractiveness to families — the low-cost region has a higher percentage of residents under 5 than any other beside the Inland West.

    But outside of the oil boom towns, don’t expect a revival of the small communities that dot much of the region. The new Great Plains is increasingly urbanized, with an archipelago of vibrant, growing cities from Dallas and Oklahoma City to Omaha, Sioux Falls and Fargo.

    Its major challenges: accommodating an increasingly diverse population and maintaining adequate water supplies, particularly for the Southern Plains. The strong pro-growth spirit in the region, its wealth in natural resources and a high level of education, particularly in the northern tier, suggest that the Plains will play a far more important role in the future than anyone might have thought a decade ago.

    THE THIRD COAST

    Once a sleepy, semitropical backwater, the Third Coast, which stretches along the Gulf of Mexico from south Texas to western Florida, has come out of the recession stronger than virtually any other region. Since 2001, its job base has expanded 7%, and it is projected to grow another 18% the coming decade.

    The energy industry and burgeoning trade with Latin America are powering the Third Coast, combined with a relatively low cost, business-friendly climate. By 2023 its capital–Houston–will be widely acknowledged as America’s next great global city. Many other cities across the Gulf, including New Orleans and Corpus Christi, are also major energy hubs. The Third Coast has a concentration of energy jobs five times the national rate, and those jobs have an average annual salary of $100,000, according to EMSI.

    As the area gets wealthier, The Third Coast’s economy will continue to diversify. Houston, which is now the country’s most racially and ethnically diverse metro area, according to a recent Rice study, is home to the world’s largest medical center and has dethroned New York City as the nation’s leading exporter. Mobile, Ala., seems poised to become an industrial center and locus for trade with Latin America, and New Orleans has made a dramatic comeback as a cultural and business destination since Katrina.

    THE GREAT LAKES

    The nation’s industrial heartland hemorrhaged roughly a million manufacturing jobs over the past 10 years, making it the only one of our seven nations to lose jobs overall during that period. But the prognosis is not as bleak as some believe.

    Employment is growing again thanks to a mild renaissance in manufacturing, paced by an improving auto industry and a shale boom in parts of Ohio. The region has many underappreciated assets, such as the largest number of engineers in the nation, ample supplies of fresh water and some of the nation’s best public universities. With fifty-eight million people, it boasts an economy on a par with that of France.

    Yet we cannot expect much future population growth in the Great Lakes, the second most populous American nation. Its population is aging rapidly, and the percentage under 5 is almost as low as the Northeast.

    THE GREAT NORTHEAST

    The Northeast–which excludes the city-state of New York–has been the country’s brain center since before the American Revolution. This region is home to some 41 million people, and leads the nation in the percentage of workers engaged in business services, as well as in jobs that require a college education. With average wages of $76,000, $19,000 above the national average, the area boasts a GDP of $2.2 trillion, about equal to that of Brazil.

    The Northeast is one of the country’s whitest regions — Anglos account for over 70% of the population — and one of the wealthiest. In many ways, it resembles aging Western Europe in its demographic profile. The Northeast is the most child-free region outside the retirement hub of south Florida. Coupled with sustained domestic out-migration, its population growth is likely to be among the slowest in the nation in the decade ahead.

    Good thing its residents are highly educated — diminishing numbers and the consequent decline in political power suggest that the Northeast may need to depend more on its wits in decade ahead.

    CITY-STATE NEW YORK

    The Big Apple’s much heralded comeback has assured its place as one of the world’s great global cities. But the city faces challenges in terms of soaring indebtedness, rapid aging, a weak technical workforce, expensive housing and high taxes. It also will struggle with competition from rising cities of the other nations such as San Francisco, Seattle, Washington, D.C., and Houston, each of which threatens New York’s traditional role in key sectors of the economy.

    THE SOUTHEAST MANUFACTURING BELT

    At the time of the Civil War the southeastern United States was both outpeopled and outmanufactured. Today the Southeast, is the largest region in terms of population (60 million) and is establishing itself as the country’s second industrial hub, after the Great Lakes.

    It is attracting large-scale investment from manufacturers from Germany, Japan, and South Korea. Although most of the region still lags in educational attainment, the education gap with the Northeast and Great Lakes is slowly shrinking. The population holding college degrees has been expanding strongly in Nashville, Raleigh, Birmingham, Richmond and Charlotte.

    More babies and the migration of families, including immigrants, to this low-cost region suggest an even larger political footprint for the Southeast in the decades ahead. Population growth has been more than twice as fast since 2001 as in the Northeast, a trend that is projected continue in the next decade. The region looks set to become smarter, more urban and cosmopolitan, and perhaps a bit less conservative.

    CITY-STATE MIAMI

    Greater Miami often seems more the capital of Latin America than it does an American region. Its population is heavily Hispanic, and trade, finance, construction and tourism tend to focus southward. But Miami faces the constraints of an aging, and largely childless, population–which means it will continue to rely on newcomers both from abroad and from the colder regions of the U.S.

    This story appears in the September 23, 2013 issue of Forbes.

    Joel Kotkin is executive editor of NewGeography.com and Distinguished Presidential Fellow in Urban Futures at Chapman University, and a member of the editorial board of the Orange County Register. He is author of The City: A Global History and The Next Hundred Million: America in 2050. His most recent study, The Rise of Postfamilialism, has been widely discussed and distributed internationally. He lives in Los Angeles, CA.

    Mark Schill is Vice President of Research at Praxis Strategy Group, an economic development and research firm working with communities and states to improve their economies.

  • The Emerging Geography of Inequality

    Since the 1970s there has been a well-documented and persistent increase in income inequality in the United States. As the country slowly emerges out of a deep recession, it is instructive to seek out the geographic variation by states in the degree of inequality and the variation in both median and mean incomes.

    Data in this article are for households (basically IRS data), for 2009-2011. Median household income is considered the “typical” income of an area. The mean income is the aggregate income of all households in an area, divided by the number of households. This latter measure can be heavily influenced by high numbers of very affluent as well as poor households.

    Inequality is a measure of how far the distribution of incomes differs from if all households had the same income.  The gini coefficient is the most popular measure of income inequality.  But for my maps I instead use a simple measure of the difference between the median and mean, divided by the median, or the percent by which the mean is higher (or lower) than the median. Values above .39 (the figure for the US as a whole) are considered quite high. It should be noted that areas of highest or lowest incomes are not necessarily very unequal, if mostly all are rich or all are poor. Rather it is the juxtaposition of poor and rich households in the same state or area that best demonstrates the true geography of inequality.

    Median income is the best descriptive measure of the relative income of areas.  The state map is often reproduced and will not surprise the informed reader.  The highest median incomes, in descending order, are in Connecticut, New Jersey. Maryland, Alaska, Hawaii, Massachusetts, New Hampshire, Virginia and California, all over $60,000.  All but the far western AK, HI, and CA are parts of Megalopolis (minus the NY and PA core!).  The next “richest” (over $55,000) are selected northern and western states with large metropolitan populations: Washington, DC;  Delaware; Washington; Minnesota; Colorado; Utah; Nevada; Illinois; and New York.   

    States with median incomes from $50,000 to $55,000 are the ”typical” US set ( the US median income  is $51,914) and include Arizona, Pennsylvania, Rhode Island, Vermont, Wisconsin and Wyoming – but no state from the Old Confederacy outside Virginia. The 16 states with median incomes between $45,000 and $50,000 include the remaining big metropolitan states of the northeast, Indiana, Michigan, Missouri, Ohio, some more agricultural states in the Midwest, such as Iowa, Nebraska, North and South Dakota,  and the most sophisticated, metropolitan southern states , Georgia, Texas, Florida and North Carolina.

    Lower down on the income totem pole are six southern states, including Kentucky, South Carolina, Oklahoma, Alabama, Tennessee and Louisiana, and two western states, Montana and New Mexico, with median incomes between $40,000 and $45,000. Three states, Arkansas, Mississippi, and West Virginia, are at the bottom with median incomes under $40,000.  These states lack large urban areas, and in the case of Arkansas and Mississippi, retain a large and mostly poor African-American population.

    Inequality

    With the exception of New York, and its spillover to Connecticut, the northern part of the country has much lower inequality than the southern half, presumably because of a less severe racial and ethnic history, but also because of the differential history of unionization and welfare measures between north and south. The most egalitarian states are also in the North, establishing a band of lower inequality from Wisconsin through Iowa, Nebraska, Wyoming to Utah, northern New England (Maine, Vermont and New Hampshire), as well as the newest states, Hawaii, and Alaska.

    Then these are abutted by the relatively more equal states (in yellow) across the northern tier from Oregon and Washington to Indiana, Ohio, West Virginia, Maryland, and Delaware. There may be several historic  reasons for this greater degree of equality ranging from relatively low percentages of  poorer minorities such as African-Americans and Latinos; the presence of large Scandinavian and German descendants who have a historic attachment to egalitarian notions; and in some states, the strong influence of private sector unions.

    The middle set of states, orange on the map, sort of take a middle position geographically too, comprising in the east the highly urbanized  states of Massachusetts, New Jersey, Pennsylvania and Virginia, the Mid-America  trio of Missouri, Illinois and Kentucky,  and then the western redoubts of Colorado, Arizona, and New Mexico, affected by Hispanic and American Indian populations.  I can’t say why South Carolina is more equal (slightly) than any other state in the deeper South.  

    The states in green with higher inequality are a contiguous set across the traditional South, a region united by a difficult history of race relations and underdevelopment, as well as hostility to unions and public intervention on economic issues. The exception to the rule, Connecticut is due to its proximity to New York, bringing exceptionally wealthy households, overcoming otherwise more egalitarian institutions.

    Only four states, New York, California, Texas, and  Florida, plus Washington, DC have inequality above the national average of .39, indicating both their very large populations, their very complex ethnicity, and large metropolitan economies rich in high income earners, entrenched concentrations of poverty, and high levels of immigration. Surprisingly, these states are even more unequal than the poorest states with the most difficult racial history and delayed development: Mississippi, Alabama, Arkansas, and Louisiana.

    Poverty

    How does the level of poverty relate to income levels and the geography of inequality?  Consider first these simple correlations: Median income and poverty, -.62, mean income and poverty, -.44, and poverty and inequality, .57.  These relations reflect the complex patterns of income, inequality, and poverty across the states. While richer states tend to have lower levels of poverty, the weaker relation with mean rather than with median income reflects the fact that some richer states, especially New York and California, have moderately high poverty, which in turn is related to their high degree of inequality.  The moderate positive correlation of poverty and inequality is most evident in the giant states of New York, California, Texas and. Florida (and Washington DC) as well as in the deep south states of Louisiana, Mississippi, Alabama, and Georgia. In contrast there is relatively low rates of both poverty and  inequality in the same northern tier (Plains, Midwest, and Mountain) states of Wisconsin, Minnesota, Iowa, Nebraska, Wyoming, and Utah, plus the northern New England states of Vermont and New Hampshire.

    The geography of poverty, even more than that of inequality is reflective in large part of the deep and abiding income and education divide between whites and Asians versus Blacks and Hispanics. But the poverty of West Virginia and perhaps of Kentucky, and even Tennessee and Indiana also reflects an    alternative Appalachian history of settlement and culture that is largely white. At the opposite end the low poverty of Maryland, despite a high minority population, perhaps reflects the importance of federal employment.

    Conclusion

    For an old Roosevelt Democrat, the persistence of widespread poverty and deepening inequality, even while the extremely rich capture ever higher shares of income and wealth, is outrageous. It brings the United States back to the degree of inequality last recorded in 1929. It is ironic that the lowest degree of inequality in American history was 39 years ago in 1974, during a Republican administration, and fifty years after the great March on Washington.  These new maps are not pretty, and sadly there is little prospect for improvement.

    Richard Morrill is Professor Emeritus of Geography and Environmental Studies, University of Washington. His research interests include: political geography (voting behavior, redistricting, local governance), population/demography/settlement/migration, urban geography and planning, urban transportation (i.e., old fashioned generalist).

  • Swedish Lessons for Obama

    During his upcoming visit to Sweden, President Barack Obama will surely praise the nation’s combination of high living standards, few social problems, and high level of income equality. What he may not recognize — although he should — is that the astonishing social and economic outcomes in Sweden and other Nordic countries have more to do with a unique culture among homogenous populations than with simply following a recipe of social democratic policies.

    Sweden long has been admired by US intellectuals, particularly on the left. In 1976 Time Magazine described Sweden as a “country whose very name has become a synonym for a materialist paradise… No slums disfigure their cities, their air and water are largely pollution free… Neither ill‑health, unemployment nor old age pose the terror of financial hardship.” The praise has continued since then. Recently even Bruce Springsteen joined those in favor of the US adopting a Swedish style welfare state. The success of Nordic nations is often seen as the proof that large welfare states lead to good outcomes. Paul Krugman for example writes: “Every time I read someone talking about the ‘collapsing welfare states of Europe’, I have this urge to take that person on a forced walking tour of Stockholm.”

    A walk through Sweden’s history however paints a more nuanced perspective than the one Krugman and other praise-givers might suggest. Around 1870 the previously poor country could begin its route to prosperity, thanks to comprehensive market reforms. Between 1870 and 1936, the start of the social democratic era, the country had the highest growth rate in the industrialised world. Between 1936 and 2008, a period when Sweden was mainly controlled by the Social Democrats, the growth rate was only ranked 18th out of 28 industrialised nations. Also, it is vital to remember that the social democrats were initially highly pragmatic. Small government policies continued until the social democrats radicalized in the late 1960s.

    Sweden’s phenomenal growth can, besides business friendly policies, has much to do with the country’s unique history. Nordic countries were for a long period dominated by independent farmers who had great incentives to work hard in order to survive in the harsh and cold climate. The populations in these homogenous countries not only adapted very strong ethics relating to work and responsibility, but their culture also became characterized by social cohesion and high levels of trust.

    Early welfare state institutions, not least a public school system open for all social classes that emphasized discipline and academic knowledge, indeed promoted social mobility. It is vital to realize that the high level of income equality for which Sweden is envied for developed when the nation had relatively small welfare state. The rise of high tax policies occurred after Sweden had already grown equal.

    The cultural attributes that explain Nordic success work well also in the US, at least amongst the nation’s Nordic population. Today we can see that descendants of Scandinavians who live in the US (whose fore-fathers left well before the development of social democratic policies) have the highest levels of trust in the US. Americans of Swedish origin have the same poverty level as Swedes in their native country. The Americans however earn some 50 percent higher incomes than the latter.

    The period for which Sweden has been most envied by the US left is the massive state expansion that occurred mainly during the period following the second world war, a period when the tax rate increased by almost one percentage point annually over three decades. In particular the left is fascinated by the “third way policies”, a mix between capitalism and socialism, which followed radicalization of previously pragmatic social democrats in the late 1960s. This period, characterized by massive state involvement and effective marginal tax rates of sometimes 100 percent, was however anything but successful. Previously Sweden had thrived due to birth of new entrepreneurial firms, a phenomenon that almost stopped in 1970 and did not again start until significant market reforms where introduced during the 1990s and early 2000s.

    During recent decades the levels of economic liberty have again increased strongly in the Nordic countries (Norway, leaning on its oil-wealth, is somewhat slow to reform). The Nordic nations compensate for their high taxes and regulated labour markets by having introduced high levels of economic liberty in a wide range of other fields. Recently, even the taxes have been reformed. In 2000 total tax revenues in Sweden were over 51 percent of GDP. The level decreased somewhat during the following years of social democratic rule, to 48 percent in 2006. The current centre-right government has reduced them to 44 percent and is currently introducing new reductions of the tax burden.

    Rather than expand their welfare states, Nordic nations are again returning to the free market roots that have served them so well historically. This is perhaps an important lesson for Obama, Springsteen and Krugman, to ponder. There are indeed many smart elements in the Swedish welfare state, and the welfare states of other Nordic countries, that deserve admiration. An example is how public child care has encouraged women’s entry into the labor market. Another is Danish flexicurity that combines public safety nets with a liberal labour market. A third is partial privatization of social security in Sweden. A fourth — often ignored —  is the country’s dedication to fiscal conservatism even under the Social Democrats.

    There are also many areas in which some Nordic nations fail whilst others do significantly better. Norway continues to rely on systems with very generous public benefits, which deteriorate the work ethic. The other nations, which cannot rely on oil wealth, have learned their lesson and work towards strengthening incentives for work and entrepreneurship. Finland has kept a school system that is, thanks to academic discipline and knowledgeable teachers, able to educate well those who do not come from academic or middle-class families. Sadly, Swedish public schools, have, much like their US counterparts, moved towards progressive ideas and deterioration in teacher’s knowledge. The result is an inability to stimulate those who are not intrinsically motivated to learn to do so. Overall the Nordic nations also fail at integrating foreign-born, even those who come with higher education.  

    There is simply much to learn from Nordic nations. They have experimented with everything from implementing Milton Friedman’s idea of vouchers in welfare to implementing gender quotas in corporate boards. But aside from benefitting from the unusually strong norms related to work, trust and cooperation, Nordic societies are no exception to the rules of politics and economics. The same policies that hinder growth in the US (high taxes, lack of infrastructure, failing school policies) limit societal success in Scandinavia, whilst steps to encourage innovation, entrepreneurship, and work are proven to work equally well in both sides of the Atlantic.  

    Dr. Nima Sanandaji is a Swedish author of Kurdish-Iranian origin. He has written numerous books and reports about issues such as entrepreneurship, women’s career opportunities, integration, and welfare. Nima is the author of reports "The Swedish Model Reassessed" for Finnish think-tank Libera and "The surprising ingredients of Swedish success” for the Institute of Economic Affairs. Currently he is working on a book about the unique economic and cultural success of both the Nordic nations and the “new Nordic” countries in the Baltics.

  • Southern California’s Road Back

    If the prospects for the United States remain relatively bright – despite two failed administrations – how about Southern California? Once a region that epitomized our country’s promise, the area still maintains enormous competitive advantages, if it ever gathers the wits to take advantage of them.

    We are going to have to play catch-up. I have been doing regional rankings on such things as jobs, opportunities and family-friendliness for publications such as Forbes and the Daily Beast. In most of the surveys, Los Angeles-Orange County does very poorly, often even worse than much-maligned Riverside and San Bernardino. For example, in a list looking at “aspirational cities” – that is places to move to for better opportunities – L.A.-Orange County ranked dead last, scoring well below average in everything from unemployment to job creation, congestion and housing costs relative to incomes.

    Yet, Southern California possesses unique advantages that include, but don’t end at, our still-formidable climatic and scenic advantages. The region is home to the country’s strongest ethnic economy, a still-potent industrial-technological complex and the largest culture industry in North America, if not the world.

    In identifying these assets, we have to understand what we are not: Silicon Valley-San Francisco, or New York, where a relative cadre of the ultrarich, fueled by tech IPOs or Wall Street can sustain the local economy. Unlike the Bay Area, in particular, our economy must accommodate a much larger proportion of poorly educated people – almost a quarter of our adult population lacks a high school degree. This means our economy has to provide opportunities for a broader range of skills.

    Nor are we a corporate center such as New York, Houston, Dallas or Chicago. We remain fundamentally a hub for small and ethnic businesses, home to a vast cadre of independent craftspeople and skilled workers, many of whom work for themselves. In fact, our region – L.A.-Orange and Riverside-San Bernardino – boasts the highest percentage of self-employed people of any major metropolitan area in the country, well ahead of the Bay Area, New York and Chicago.

    Policy from Washington has not been favorable to this grass-roots economy. The “free money for the rich” policy of the Bernanke Federal Reserve has proven a huge boom to stock-jobbers and venture firms but has not done much to increase capital for small-scale firms. Yet it is to these small firms – dispersed, highly diverse and stubbornly individualistic – that remain our key long-term asset, and they need to become the primary focus on regional policy-makers.

    Ethnic Networks

    Immigration has slowed in recent years but the decades-long surge of migration, largely from Asia and Mexico, has transformed the area into one of the most diverse in the world. More to the point, Southern California has what one can call diversity in depth, that is, huge concentrations of key immigrant populations – Korean, Chinese, Mexican, Salvadoran, Filipino, Israeli, Russian – that are as large or larger than anywhere outside the respective homelands. Foreigners also account for many of our richest people, with five of 11 of L.A.’s wealthiest being born abroad.

    These networks are critical in a place lacking a strong corporate presence. Our international connections come largely as the result of both the ethnic communities as well as our status as the largest port center in North America, which creates a market for everything from assembly of foreign-made parts to trade finance and real estate investment. Southern California may be a bit of a desert when it comes to big money-center banks, but it’s home to scores of ethnic banks, mainly Korean and Chinese, but also those serving Israeli, Armenian and other groups.

    For the immigrants, what appeals about Southern California is that we offer a diverse, and dispersed, array of single-family neighborhoods. Both national and local data finds immigrants increasingly flocking to suburbs. Places like the San Gabriel Valley’s 626 area, Cerritos, Westminster, Garden Grove, Fullerton and, more recently, Irvine, have expanded the region’s geography of ethnic enclaves.

    These enclaves drive whole economies, such as Mexicans in the wholesale produce industry or the development of electronics assembly and other trade-related industry by migrants largely from Taiwan. Global ties are critical here. Korean-Americans started largely in ethnic middleman businesses, but have been moving upscale, as their children acquire education. They, in turn, have helped attract investment from South Korea’s rising global corporations, including a new $200 million headquarters for Hyundai in Fountain Valley, as well as a $1 billion, 73-story new tower being built by Korean Air in downtown Los Angeles.

    Tech Industrial Base

    During the Cold War, Southern California sported one of the largest concentrations of scientists and engineers in the world. The end of the Cold War, at the beginning of the 1990s, severely reduced the region’s technical workforce, a process further accelerated by the movement out of the region of such large aerospace firms as Lockheed and Northrop. The region has roughly 300,000 fewer manufacturing jobs than it had a decade ago, largely due to losses in aerospace as well as in the garment industry.

    Yet, despite the decades-long erosion, Southern California still enjoys the largest engineering workforce – some 70,000 people – in the country. It also graduates the most new engineers, although the vast majority of them appear to leave for greener pastures. One looming problem: a paucity of venture capital, where the region lags behind not just the Bay Area, but also San Diego and New York. This can be seen in the relative dearth of high-profile start-ups, particularly in fields like social media, now dominated by the Bay Area.

    But the process of recovery in Southern California does not require imitating Silicon Valley. Instead we need to leverage our existing talent base – and recent graduates – and focus on the region’s traditional strength in the application of technology. A recent analysis of manufacturing by the economic modeling firm EMSI found strong growth in some very promising sectors, including the manufacturing of surgical and medical equipment, space vehicles and a wide array of food processing, an industry tied closely to the immigrant networks.

    Cultural Complex

    For most Americans, and even more so among foreigners, the image of Southern California is shaped by its cultural exports, not only in film and television but in fashion and design. This third sector epitomizes the uniqueness of the region, and provides an economic allure that can withstand both the generally poor business climate and the incentives offered by other regions.

    After a period of some stagnation, Hollywood again is increasing employment. Roughly 130,000 people work in film-related industries in Los Angeles, which is now headed back to levels last seen a decade earlier but still well below the 146,000 jobs that existed in 1999.

    At the same time, the sportswear and jeans business in Los Angeles, and the surfwear industry in Orange County, remain national leaders. Overall, the area’s fashion industry has retained a skilled production base – over twice that of rival New York’s – and has been aided, in part, by access to Hollywood, lower rents and labor costs than in New York.

    Taken together, these sectors – ethnic business, sophisticated manufacturing and culture – could provide the basis for a renaissance in the local economy. The smaller firms in these fields, in particular, need a friendlier business climate, a more evolved skills-training program from local schools and a better-maintained infrastructure. More than anything, though, they require an understanding on the part of both government and business that their success remains the best means to reverse decades of relative decline.

    Joel Kotkin is executive editor of NewGeography.com and Distinguished Presidential Fellow in Urban Futures at Chapman University, and a member of the editorial board of the Orange County Register. He is author of The City: A Global History and The Next Hundred Million: America in 2050. His most recent study, The Rise of Postfamilialism, has been widely discussed and distributed internationally. He lives in Los Angeles, CA.

    This piece originally appeared at The Orange County Register.

  • South Korea, What Will Limit the World’s Global Underdog?

    South Korea is a small country with grit. The shrimp sized peninsula is a national success story that transformed itself from impoverished conditions to industrial riches in a remarkable 68-year postwar period. The country experienced the fastest growth in per-capita GDP since the 1960. According to the World Bank, South Korea’s GDP per capita in 1960 was $155 and has risen to $22,424 today, which is greater than the national wealth of their Chinese neighbors.

    Korea’s rise to world prominence did not come easily. The country rose to its ranks after being destroyed by a half-century of Japanese colonization and from the ashes of the divisive Korean War, which left its cities, including the capital, Seoul, in ruins. At war’s end GDP stood at less than $200 per capita, no natural resources, and a third of the population was homeless.  Today it is home to a number of Fortune Global 500 conglomerates, most notably, Samsung at no. 14, SK Holdings no. 57, POSCO no. 167, and Hyundai no. 206.

    The country also took a tortuous path towards democracy, living under authoritarian and military-dominated regimes until 1945. Now it is not only a thriving, and often contentious democracy, but now boasts its first female president.   

    But the question is: will South Korea’s miraculous rise to power give enough reason to believe that Korea is capable of global influence and expansion? For the most part, the answer – at least for the near future – is yes.

    This trajectory will continue even though the country – known as the “shrimp among the whales” – lives next door not only to its unpredictable northern rival, but also in the same neighborhood as three world powers. Yet in qualitative terms it is increasingly out-performing their rivals and is one of the top tech capitals in the world. This place is literally wired for success: Number one in e-government and top five in the global gaming market, with the fastest and cheapest broadband connection on earth.

    Due to the smallness of the domestic market – the country is home to only 48,955,203 people – Korean businesses need to operate on a global scale. Heavily dependent on international trade, the country, in 2011, ranked as the world’s eighth largest exporter and ninth largest importer. An example of this is Samsung, the world’s largest smartphone maker. This will lead Korean firms to continue to invest heavily on a global basis.   

    Perhaps the most impressive accomplishment can be seen in smart phones, an area that long-time electronics leader – and former colonial overlord – Japan has stumbled in. According to the Wall Street Journal, Strategy Analytics reported Samsung’s smartphone shipments grew to 69.4 million units in the quarter, giving it a market share of 33% – almost twice that of Apple.

    Samsung’s growing cash reserves evidence its strength as a fierce competitor to Apple and questions Apple’s ability to return to its market leadership. Some commentators predict Apple will need to make price reductions or find an unforeseen market that does not compete. But its most recent blow in the American markets came after the ITC ban on the import and sale of some Samsung products into the U.S. This moment can be the saving grace for Apple but Samsung continues to gain market share and, unlike its Silicon Valley competitor, it is highly diversified as one of the world’s most sophisticated maker for processors, memory, and high-resolution screens.

    But these accomplishments have had their downside. The hyper-connectivity has engendered a “digital addiction” among young children. Concerned of this has become so pronounced that Korea’s science and education ministries announced its policy package in June to “wean students off of their dependency” through boot camps.

    Yet for now, the country’s positive trajectory seems assured. This is not just a matter of technology and manufacturing. The Korean entertainment industry  now ranks seventh in the world according to consulting firm PwC and is home to global stars like Psy of “Gangnam Style” and singer, Rain, whose influence in the music industry is unprecedented ranking him the most influential artist in TIME’s 100 list three years in a row. In the world of pop culture Korea tops the list among the Asian country competitors.  

    Besides entertainment, Korea’s global footprint has been growing exponentially.  Korea’s direct foreign investment history in the U.S. increased steadily ever since the onset of South Korea’s financial crisis in 1997.   Korean investment in the U.S. has jumped from $15.7 billion in 2010 to $24.5 billion in 2012. In particular, Korea has been investing heavily in its East Asian neighbors. South Korean companies were the biggest investors in Indonesia with POSCO, the country’s leading steelmaker, topping it off with a $6 billion joint venture deal with Indonesian steelmaker Kraktau Steel.

    Korean corporations also have been establishing new homes in the U.S. over the years. For example, Hyundai Motors has built its U.S. Headquarters in Fountain Valley in Orange County to “secure its long-term future in California,” as stated in its press release. The two-year and 500,000 square feet development has cost $200 million and is located visibly alongside the I-405 freeway. The project symbolizes economic growth in California and projects a positive outlook for the future of Hyundai as a rising automotive leader in the world. Hyundai’s move also makes Samsung’s plans to build its North American headquarters in San Jose no surprise. Another example is SK Planet, a South Korean Internet services giant, that is planning to invest anywhere from $500 million to $1 billion in the U.S. over the next few years.

    South Korea also has been one of the top three Asian countries to participate in the “East looks West” trend in foreign property investments. In hunt for safe and affordable places to invest, South Korean firms and individual investment in U.S. real estate have surged in the past year. South Korea takes the second-lead after Singapore in investing the U.S. market. According to Real Capital Analytics, Singapore invested $1.87 billion, South Korea $1.83 billion, and China $1.52 billion for a combined total of $5.2 billion in commercial real estate in 2013 alone.  South Korea’s Mirae Asset Global Investments recently acquired Chicago’s West Wacker Drive building for $218 million. A group of South Korean investors also bought the Washington Harbour complex at the U.S. capital for $373 million in July.

    Another noteworthy venture is the Korean Air’s plan to develop the tallest hotel skyscraper in the West at the site of the 1950s Wilshire Grand Hotel in downtown Los Angeles. Expected to be completed in 2017, the 73-story hotel is estimated to cost $1 billion. The skyscraper reinforces Korea’s determination to build its image as an aggressive, forward thinking investor.  

    The leaders of the country have typically been supportive of their conglomerates but also recognize the downfalls in investing too much in a single business. South Korea’s Iron Lady, President Park Geun-hye, has promised to address the country’s major issues starting with the “economy’s excessive reliance on a small number of huge conglomerates”.  For instance, Seoul has offered $1 billion to small and mid-sized exporters in order to reach its targeted export growth of 4.1% in 2013. The South Korean government has also garnered free trade agreements in Europe, India, and reportedly help boost the U.S. auto industry.  

    Yet like other Asian countries, Korea faces some large long-term challenges. It lacks the girth of China, or the EU, not to mention the resources and entrepreneurial system for the United States. Perhaps even more serious, the country now suffers among the lowest birthrates in the world. Although this may not yet be a critical problem, lack of production in this area could threaten the country’s long-term economic position.

    Equally important, research has found that couples that do have children are born with health risks due to the extreme dense way of living. Since the 1970s, the population ballooned and the limited land for residential use led to the mass construction of high-rise apartments. The high density and aesthetically displeasing public spaces in the largest cities makes Korea an unattractive place for foreigners to live undermining it as a global country. For example, Seoul, the country’s capital, ranks highest in population density among OECD countries, a problem in terms of future fertility.

    Development in the services industry will also become critical overtime because of the country’s heavy reliance in manufacturing. Korea does not outsource like its competitors, which has largely contributed to its wealth. But in order to be ranked as a premier nation, services will have to become a higher priority, meaning growth in its skilled work force. Korea lacks the managerial, administrative, and professional social capital that give U.S., Japan, U.K., and Germany their world status. According to Global Insight, 30% of the nation’s economy comes from manufacturing where as the U.S. and Japan have only 13% and 20% in manufacturing jobs, respectively, with a majority of their jobs in services.  

    Despite its massive economy derived mainly from conglomerates and the wealthy few, Korea faces challenges in a number of areas: the diversity of its labor pool, new diplomatic strategies, declining demographics, lack of natural energy resources, and environmental sustainability. As they are keys to Korea’s continued success, the country’s long-term prominence falls into question.

    Grace Kim is an undergraduate at Chapman University majoring in Business Administration and Communication Studies who is also the President of the Chapman Real Estate Association and Editor in Chief of Meta-communicate, the Communication department’s undergraduate research journal.

    Photo from Wiki Commons by user tylerdurden1.

  • Rust Belt Chic And The Keys To Reviving The Great Lakes

    Over four decades, the Great Lakes states have been the sad sack of American geography. This perception has been reinforced by Detroit’s bankruptcy filing and the descent of Chicago, the region’s poster child for gentrification, toward insolvency.

    Yet despite these problems, the Great Lakes’ future may be far brighter than many think. But this can only be accomplished by doubling down on the essential DNA of the region: engineering, manufacturing, logistics, a reasonable cost of living and bountiful natural resources. This approach builds off what some local urbanists, notably Jim Russell, have dubbed “rust belt chic.”

    With a population of 58 million, the Lakes region boasts a $2.6 trillion economy equal to that of France and far larger than the West Coast’s. (We define the region geographically as comprising the western ends of New York and Pennsylvania, northeastern Minnesota, and Ohio, Indiana, Illinois, Michigan and Wisconsin.) Despite the growth in auto manufacturing in the South, the Great Lakes region still accounts for the vast majority of jobs in the resurgent industry, now operating at record levels of capacity.

    Since 2007, Michigan, Indiana, Ohio and Wisconsin have ranked among the top five states for growth in industrial jobs, adding a half million new manufacturing jobs since 2009.

    To build on this progress the region needs to focus on its human assets. This starts with by far the nation’s largest concentration of engineers, some 318,000, which stems from the oft unappreciated fact that manufacturing employs the majority of scientists and engineers in the nation. It also accounts for almost 70% of corporate research and development. This includes disciplines such as mechanical engineering, which according to a recent EMSI study, has enjoyed steady job and income growth over the past 20 years.

    Another critical asset is the concentration of skilled trades, the workers most sought after by employers, according to a recent Manpower survey. To keep this advantage, the area needs to focus on educating its workforce — particularly in neglected inner city neighborhoods — with skill training for jobs that actually exist and are expected to grow. This is already occurring in some states, such as Ohio.

    To be sure, traditional manufacturing jobs, particularly for the unskilled and semi-skilled, likely will never come back in large numbers. But the earnings level for skilled workers will remain well above the national average, and may increase even further as shortages develop.

    Some dismiss such blue-collar strengths as a critical weakness. They suggest that area residents might decamp for places like Silicon Valley where they can find livelihoods cutting hair and providing other personal services for the digerati.

    Of course, no sane Great Lakes leader would endorse this approach in public, but many, instead of embracing “rustbelt chic” prefer to recreate a faux version of America’s left coast. This obsession goes back at least a decade, reaching its most risible level during the time of former Michigan Gov. Jennifer Granholm. Her strategy focused on turning its cities — including Detroit — into “cool” burgs.

    This clearly did little to turn around either already beleaguered state or cities; “cool” did not save Detroit from bankruptcy. Indeed cool represents just one variation in a myriad of Rust Belt elixirs, including casinos, convention centers, “and creative class oriented arts districts. Virtually all the strategies being adopted in Detroit have already been applied in Cleveland, including by the same entrepreneur, Quicken Loans Chairman Dan Gilbert, with very little tangible economic benefit.

    Yet despite this history, Detroit — the poster child of public malfeasance — once again is pinning its hopes on luring the “creative class” to Motor City. It starts with the usual stab at subsidizing housing, office and retail around the central core. This is being jump-started by taking Quicken Loans jobs already in the area’s suburbs, meaning little net regional advantage.

    Even more absurd, Michigan taxpayers are being asked to pony up to as much as $440 million for a new stadium in Detroit for the Red Wings hockey team. In contrast to this beneficence, many remaining established, older smaller neighborhood businesses — many of them deeply entrenched in the Rust Belt economy — get stuck with ever higher tax bills and reduced levels of public service.

    To be sure, this approach can succeed in building hipster cordon sanitaire — a miniaturized but utterly derivative urban district — that can be shown to investors and visiting, and usually core-centric, journalists. It also can enrich speculators and those politicians who service them, but represents a marginally effective means of reviving the city, much less the regional, economy.

    Instead of chasing hipsters , Cleveland urban strategist Richey Piiparinen suggests cities such as his rebuild their economies from the ground up, tapping the strong industrial skills, work ethic and resilient culture deeply embedded in the region. Large factories may not return en masse to Cleveland, Detroit or Chicago, but a strong industrial economy and a culture embracing hard work could stir growth in service-related fields as well.

    Geography and location provide other opportunities . The area’s natural resources — the Great Lakes contain one-fifth of the world’s supply of fresh water — constitute a profound competitive advantage against drought stricken economies in the Inland West, the southern Great Plains and parts of the Southeast. Water is an essential element in many industrial processes, including fracking, a serious issue in parts of the Rust Belt. Miles of attractive coastline could be used to lure not only factories, but high-tech businesses, tourists and educated professionals who can choose their location.

    The Great Lakes also are a natural conduit for the $250 billion trade with Canada, with its vast resource-based economy and growing population . Instead of funding better bars, art galleries and sports venues, or hoping to attract tourists and conventioneers to traipse to Cleveland in December, what the region really needs, noted a recent Brookings report, is better infrastructure, such as bridges, ports, freight rail and roads.

    Critical too are the region’s strong engineering schools. Of the nation’s top 10, four — Carnegie Mellon, Purdue, the University of Michigan, and the University of Illinois at Champagne-Urbana — are located in the Rust Belt. The Great Lakes may not be home to the Ivy League, but it remains the nursery of practical applied intelligence.

    Emerging demographic trends could also play a positive role. The millennial generation will soon be approaching the age when they wish to start businesses, get married, have children and buy homes. A good target would be those seeking a single-family home and a reasonable cost of living; both are increasingly difficult to attain in much of the Northeast and coastal California where the cost of housing, even adjusted to income, can be easily two to three times higher.

    Indeed, despite decades of demographic stagnation, the region already boasts higher percentages of people under 15 than the Northwest, the Northeast (including New York) and has about the same percentage of kids as the rapidly growing Southeast. For a new generation, the Great Lakes could emerge as a destination, not a place to avoid.

    This requires the region becoming more attractive to newcomers, whether from abroad or within the country. As urban analyst Aaron Renn suggests, the Great Lakes has to become more culturally open to outsiders and immigrants. Cities such as Cleveland, Chicago, and Detroit were once magnets for immigrants from Europe and people coming from America’s rural hinterlands, notably the south.

    Restoring appeal to outsiders does not mean denying the region’s proud past, and throwing away its historic assets, but instead focusing on its core values. For many reasons — geography, weather, history — the region cannot remake itself into California, the Pacific Northwest or the Northeast Corridor. Instead the Great Lakes can best restore its legacy as an aspirational region by focusing on the very real things that constitute its historic DNA.

    Joel Kotkin is executive editor of NewGeography.com and Distinguished Presidential Fellow in Urban Futures at Chapman University, and a member of the editorial board of the Orange County Register. He is author of The City: A Global History and The Next Hundred Million: America in 2050. His most recent study, The Rise of Postfamilialism, has been widely discussed and distributed internationally. He lives in Los Angeles, CA.

    This piece originally appeared at Forbes.

    Great Lakes map by BigStock.

  • Cities Don’t Consume Resources, People Do

    Urban form or urban consumers? If we want to reduce the environmental impacts of modern society let’s prioritize consumption, not city form.  The evidence suggests that large cities (and especially city centres) are associated with a bigger environmental footprint than modest cities or suburbs. 

    This post looks at incomes and consumption, especially the consumption of housing and transport services, asking how far can local regulation really influence environmental impacts?

    What can local governments do about the environment?
    Local governments have two core roles.  One is to ensure that the infrastructure and services necessary to sustain everyday life and commerce are in place and working well.  In fulfilling this role they should aim to enhance the quality of the urban environment and limit any environmental impacts of infrastructure. 

    The other role is to plan and manage development in a way that reduces conflict among land uses. In doing that they should aim to contain or control adverse spill-over impacts. 

    However, for councils to use their investment in infrastructure and land use regulation to determine in detail how and where people should live and consume pushes the boundaries of these roles, particularly when they try indirectly to reshape household behavior by reshaping the city.

    The key to understanding the environmental impacts of urbanized society is not urban form but household consumption, a function of income, not city plans.

    Urbanization and environmental impacts
    In a recent piece I showed how policies to increase residential densities around city and town centres assume a relationship between urban form and environmental impacts that is not supported by the evidence. In Australia, for example, residents of the New South Wales state capital, Sydney, particularly central Sydney, have by far the largest environmental impact per head.  Much lower levels are recorded in suburbs, smaller cities, and towns. (The same pattern is evident in all Australian states: have a look using the Australian Consumption Atlas).

    The environmental impacts of intensive urban living outweigh any advantages of increasing scale and density. This means that policies that push agglomeration and intensification will increase rather than lower the impacts of urban living.

    Household spending is the issue
    The Australian study confirms that a city’s environmental impacts simply comprise the collective impacts of its residents.  Income is the driver of their consumption and thereby their demands on the environment. 

    If we really believe city form can in some way over-ride income- and consumption-driven environmental impacts, then we should heed the evidence and plan for modest, small scale, dispersed urban settlement. 

    Spending on housing and transport in New Zealand
    Household Expenditure Survey data for New Zealand (and elsewhere) provide an opportunity to explore the role of income in consumption generally. 

    First, take a look at the distribution of spending on housing, transport, and discretionary goods (recreation and cultural services is used to represent the latter category) according to household incomes in 2010. Average spending levels have been organized by income decile for this purpose, each group containing 10% of households. Average incomes increase from decile 1 (the lowest earning 10% of households) to decile 10 (the highest earning 10%).

    The pattern is pretty predictable.  Housing dominates the spending of low decile households.  It accounts for 34% in the lowest decile, falling to 22% in the ninth.  It rises again (to 24%) in the highest earning decile (10). This lift between decile 9 and 10 households no doubt reflects higher discretionary spending in the latter group by way of additional space, the quality of fit-outs, and second homes. 

    Shares of Household Spending to Selected Categories, by Income Band
    http://3.bp.blogspot.com/-9RfoZrWOqJk/UdklonCl_xI/AAAAAAAAAY0/AX1r49MtdJE/s640/Share+of+hhold+spend+by+category.jpg

    Do lower housing costs lead to higher transport spending?
    Rent theory suggests that lower household spending is offset by higher transport spending.  This is because low income households can only afford cheaper, less accessible properties and so end up commuting further at a higher cost than high income households. 

    It turns out that it’s not that simple.  Contrary to the theory, higher income households actually spend more of their income on transport.  That makes sense when we realize that commuting accounts for only around 25% of time spent travelling by New Zealanders.  The capacity to take discretionary trips is a bigger determinant of transport consumption than non-discretionary commuting and work-based trips.

    The Relationship Between Spending on Housing and Transport

    http://4.bp.blogspot.com/-8sGLN4_gTfo/UdyUskoSpgI/AAAAAAAAAZk/WEqMSQNRZM4/s640/Transport+Housing+Relationship.jpg

     

    Lower incomes leave a lot less to spend on discretionary goods and services once housing and essential transport spending are covered. [1] Higher income households can and do travel more and consume more.  Their behavior is unlikely to be significantly influenced by changing city form. 

    Who spends how much?
    Not surprisingly total consumption in New Zealand is dominated by higher income households: the 20% highest earning households (deciles 9 and 10) account for 35% of total spending on goods and services, while the lowest earning 20% (deciles 1 and 2) account for just 20%.

    And decile 10 households account for 7 times more spending on transport than decile 1 households.  They spend 5.5 times more on recreation and cultural services, and 3.5 times as much on food.

     

    The Contribution of Household Total Expenditure by Income Band, Selected Categories
    http://2.bp.blogspot.com/-OXL5hMRRw-Q/UdklqCO8CjI/AAAAAAAAAZA/o2GweAb3nTc/s640/Contributinm+to+totalmspoend+by+decile.jpg

     
    The highest income households spend three times more on housing than low income households, an average of $476 per week compared with $161.
    If refurbished housing in high amenity inner city living is expensive, guess which income groups will be living there?  The high consumers, obviously.  And in Auckland, at least, it seems that city planners and policy-makers are keen to deliver them the high order consumer services that will promote ever-more discretionary spending around the CBD(although much of central city resident travel may be taken up with recreational and social trip-making away from there).  

    A high social cost for little environmental benefit?
    The conclusion is straightforward: higher incomes mean more expenditure on additional housing, transport, and discretionary goods and services with correspondingly high environmental impacts.  If incomes are higher in cities, then their collective impacts will be high too.

    Planning policies won’t change that much – except to the extent that they erode consumption by inflating the basic costs of living, something that impacts most heavily on lower income households.  

    Fiddling with city form is unlikely to significantly reduce the impact of higher incomes and associated spending on the environment.  Increasing dwelling and living costs by promoting larger cities, higher residential densities, and uneconomic transit systems simply penalizes low income households already committing substantial shares of their spending to housing and transport.  And this is the group that, by dint of constrained consumption, has the lowest impact on the environment. 

    Better to address environment issues directly
    From a policy perspective, environmental issues are better tackled directly.  This may mean promoting environmentally friendly goods and services, promoting low impact technologies (including low impact housing, fuel efficient vehicles, and the like), and encouraging responsible consumption. If we are really serious about environmental threats, we need to examine the efficiency of current pricing practices and even taxation measures, rather than leaning so heavily on clumsy, indirect, and ultimately spurious urban planning policies. 

    Phil McDermott is a Director of CityScope Consultants in Auckland, New Zealand, and Adjunct Professor of Regional and Urban Development at Auckland University of Technology.  He works in urban, economic and transport development throughout New Zealand and in Australia, Asia, and the Pacific. He was formerly Head of the School of Resource and Environmental Planning at Massey University and General Manager of the Centre for Asia Pacific Aviation in Sydney. This piece originally appeared at is blog: Cities Matter.

    Photo by Pat Scullion