Mapping NYC’s manufacturing facilities in 1919

A 1919 map of New York City’s manufacturing facilities provides insights into the city’s manufacturing prowess:

In 1919, this list shows, New York produced more than 50% of total national output in twelve lines of manufacture, and was competitive in many more.

Geographer Richard Harris, writing about industry in the city between 1900-1940 in the Journal of Historical Geography, points out that because of the particular products New York was known for (lapidary work, women’s clothing, millinery), many industrial workers were women. In 1939, they represented 36% of the total workforce. Workers in Lower Manhattan, where many garment factories were located, were particularly female.

Harris points out that although factories tended to move outward into the boroughs after 1919, before WWII the city did retain many factories in its central core, bucking the nationwide trend of suburbanization of industry. In 1940, 60% of New York workers had manufacturing jobs.

In the midcentury period, however, development trends turned toward offices and corporate headquarters. Zoning regulations made building more factories difficult.

In recent years, the city’s economy has rested on the service and financial industries. While manufacturers still do set up shop in the city, the scope of their activities is specialized. According to the New York City Economic Development Corporation, industry now provides just 16% of private-sector jobs. New York still produces garments, textiles, and printed material, and has increased production of packaged foods (see this October 2013 report from the NYCEDC for details [PDF]), but city factories tend to be smaller and to employ fewer workers.

This is an impressive range of industrial capabilities in 1919. As the above section notes, today New York City doesn’t have much of a manufacturing image due to the rise of Wall Street, the finance industry, the sector, and entertainment industries. Yet, 16% of manufacturing jobs in New York City still adds up to a big number of employees and firms, even if these facilities are not in highly visible areas in Manhattan. Additionally, some of the more hip areas in New York City today, such as Williamsburg and SoHo, are places that were ripe for gentrification and redevelopment in recent decades after large industry left in the mid 20th century.

Argument: businesses should use scientific method in studying big data

Sociologist Duncan Watts explains how businesses should go about analyzing big data:

A scientific mind-set takes as its inspiration the scientific method, which at its core is a recipe for learning about the world in a systematic, replicable way: start with some general question based on your experience; form a hypothesis that would resolve the puzzle and that also generates a testable prediction; gather data to test your prediction; and finally, evaluate your hypothesis relative to competing hypotheses.

The scientific method is largely responsible for the astonishing increase in our understanding of the natural world over the past few centuries. Yet it has been slow to enter the worlds of politics, business, policy, and marketing, where our prodigious intuition for human behavior can always generate explanations for why people do what they do or how to make them do something different. Because these explanations are so plausible, our natural tendency is to want to act on them without further ado. But if we have learned one thing from science, it is that the most plausible explanation is not necessarily correct. Adopting a scientific approach to decision making requires us to test our hypotheses with data.

While data is essential for scientific decision making, theory, intuition, and imagination remain important as well—to generate hypotheses in the first place, to devise creative tests of the hypotheses that we have, and to interpret the data that we collect. Data and theory, in other words, are the yin and yang of the scientific method—theory frames the right questions, while data answers the questions that have been asked. Emphasizing either at the expense of the other can lead to serious mistakes…

Even here, though, the scientific method is instructive, not for eliciting answers but rather for highlighting the limits of what can be known. We can’t help asking why Apple became so successful, or what caused the last financial crisis, or why “Gangnam Style” was the most viral video of all time. Nor can we stop ourselves from coming up with plausible answers. But in cases where we cannot test our hypothesis many times, the scientific method teaches us not to infer too much from any one outcome. Sometimes the only true answer is that we just do not know.

To summarize: the scientific method provides ways to ask questions and receive data regarding answering these questions. It is not perfect – it doesn’t always produce the answer or the answers people are looking for, it may only be as good as the questions asked, it requires a rigorous methodology – but it can help push forward the development of knowledge.

While there are businesses and policymakers using such approaches, it strikes me that such an argument for the scientific method is especially needed in the midst of big data and gobs of information. In today’s world, getting information is not a problem. Individuals and companies can quickly find or measure lots of data. However, it still requires work, interpretation, and proper methodology to interpret that data.

Financial advice for young adults: don’t buy a series of McMansions

A set of “10 Pillars of Financial Independence” includes advice about avoiding McMansions:

Therefore, their choices are to sacrifice a bit now so that in 30 years they have a home paid for and $204,958.63 in the bank, or a slightly smaller house payment and a home paid for without a good start on their nest egg. Many of the choices you make 10-20 years ahead of retirement can pay off very well when you want to retire.

I’m a firm believer in paying for your home as soon as possible. Unfortunately, beginning with a starter home and moving up to McMansion after McMansion has become commonplace; this habit can make it practically impossible to pay off your home in a timely fashion.

The general advice sounds good: beware of long mortgages for houses you don’t need. Instead, take the money you could save with a smaller mortgage over a shorter period of time and invest it.

However, the idea of people buying McMansion after McMansion after having a starter home sounds exaggerated to me. Perhaps I might be wrong: do McMansion owners tend to live in multiple such homes over their lifetime? Are they more or less likely to move than others? The illustration makes sense – don’t keep purchasing home after home that you can’t afford – and fits the idea that Americans overconsumed in the late 1990s and early 2000s. But, I would be interested in knowing more about serial McMansion purchases…

The American cities with the highest percentage of households without a car

As part of a look at the connection between education levels and car ownership, Derek Thompson includes this information about which American cities have lower rates of car ownership:

Here are the non-car household rates in 30 large U.S. cities (the national average is in RED):

Source: Michael Sivak, University of Michigan

What do NYC, DC, Boston, and Philadelphia have in common? For one, they’re old, crowded cities with good (okay, decent) public transit. “The five cities with the highest proportions of households without a vehicle were all among the top five cities in a recent ranking of the quality of public transportation,” Michael Sivak, director of Sustainable Worldwide Transportation at Michigan, told WSJ.

That might be the most important, variable, but it wasn’t the first thing this graph reminds me of. When I see New York, D.C., Boston, Philadelphia, San Francisco, the first thing I think is: These are all the classic, even cliche, magnets for elite college graduates. 

So I compared the cities’ non-car ownership rates to their share of bachelor’s-degree holders. And it turns out there is a statistically significant relationship between being college-dense and car-light.

Then follows a correlation chart – but no number or measure of the significance of the relationship! If one is going to claim a statistically significant relationship, more information needs to be provided like the correlation coefficient and the significance level.

That said, larger Sunbelt cities don’t come out well, nor do smaller Northern or Midwestern cities. All together, these cities are more likely to have sprawl and not have the kind of dense downtowns like Manhattan or the Loop that supports a lot of workers traveling to a single area each day. There was less historical incentive in these communities to build mass transit (outside of commuter rail) and such services, particularly subways or light rail, are quite expensive to build today in more sprawling conditions.

The three conditions sociologists say are crucial for friendship

An article on the difficulty of making good friends after age 30 highlights the conditions sociologists say lead to friendship:

As external conditions change, it becomes tougher to meet the three conditions that sociologists since the 1950s have considered crucial to making close friends: proximity; repeated, unplanned interactions; and a setting that encourages people to let their guard down and confide in each other, said Rebecca G. Adams, a professor of sociology and gerontology at the University of North Carolina at Greensboro. This is why so many people meet their lifelong friends in college, she added.

It is interesting to consider how well this compares with online friendship. Let’s look at Facebook:

1. Proximity. This is virtual proximity where your friends are easy to access and Facebook helpfully tells you what they are up to. It is interesting to note that most friends of Facebook users are people they know from the offline world – there is a lot of overlap between these two realms.

2. Repeated, unplanned interactions. This could happen through wall posts, messages, tagging, and chatting. However, users of Facebook can choose when and how they do this as opposed to consistently running into someone in the offline world. This choice of interaction allows users to participate when and with whom they want in a way that wasn’t possible before.

3. Setting that allows people to let down their guard. Maybe the privacy settings in Facebook allow this but not in the same way as proximity and face-to-face interactions. Facebook is full of impression management where users create the image they want to project to others (this is also true of face-to-face interactions).

All together, Facebook capitalizes on the some of the advantages and difficulties of the early 21st century but it doesn’t replicate the experience of developing friendships in-person.

“Half of American fans say ‘supernatural’ forces are in play during sports events”

Around half of American sports fans, particularly football fans, think that the supernatural influences are at play on the field/court/ice/pitch/playing surface.

“Just ahead of the 2014 Super Bowl, 50 percent of sports fans see some aspect of the supernatural at play in sports, meaning they either pray to God to help their team, have thought their team was cursed at some point in time, or believe that God plays a role in determining the outcome of sporting events,” reports a new survey conducted by the Public Religion Research Institute, a nonpartisan, non-profit group based in the nation’s capital.

A fervent 26 percent of the respondents say they have prayed that “for God to help their team”, while an equal number have entertained the notion that their team was “cursed.”…

“Football fans are also more likely than other fans to say they pray for their team (33 percent ), perform pre-game or game-time rituals (25 percent), or to believe that their team has been cursed (31 percent).

White evangelical Protestants (38 percent), white mainline Protestant (33 percent) and minority Protestant (29 percent) sports fans are considerably more likely than Catholic (21 percent) or religiously unaffiliated (15 percent) fans to say they have prayed for their team, the survey found.

A few quick thoughts:

1. America is often regarded as an unusually religious industrialized nation so it is not surprising that this would carry over to sports.

2. This gives credence to the argument that sports might sometimes act as functional religion.

3. Rather than attribute outcomes on the field to the actions of individual players or physics, some fans invoke the supernatural. How else to explain unusual plays or certain outcomes? Does invoking religion is related to the record of a particular team (bad teams are cursed, good teams are provided miracles – mediocre/average teams are supernaturally stagnant)?

New documentary shows China’s Internet addiction camps

A new documentary goes inside Internet addiction facilities inside China:

In a documentary called Web Junkies, filmmakers Shosh Shlam and Hilla Medalia go behind the doors at the Daxong Camp in Beijing – one of China’s first of many rehab correctional facilities.

The film captures the expressionless faces of the teens, males mostly, dressed in camo uniform attending the three-to-four month “treatment”, which involves military physical training, medication, therapy sessions and controlled diet in order to reconnect them with society.

The addicts, who mostly are brought in against their will by their parents, stay in barren and bleak cells at night, completely cut off from electronics. Except when they are wired up to machines so psychologists can observe their brain activity. Then, during the day, they sit like specimens in front of a panel of doctors in white coats as they try to reprogram their subject…

The documentary, which is being shown at the Sundance film festival, serves to highlight the psychological and physiological effects of the internet, but also calls into question whether parents are simply using this “disorder” to blame all manner of social issues and behavioural issues.

See the documentary’s website, including a clip from the film, here.

There are several interesting factors at work here:

1. Defining internet addiction itself.

2. Discussion of how to best treat Internet addiction.

3. How this treatment occurs in a country, China, that some Americans view as authoritarian.

Perhaps it would be worthwhile for some people who know much more about this topic to see this documentary, read about what is going on in China to address Internet addiction, and then compare it to treatment options here in the United States.

Illinois property taxes second-highest in the nation

A new report shows at the end of 2012 Illinois had the second-highest property taxes, just behind New Jersey:

Property taxes in Illinois average 2.28 percent of a home’s value, according to the Urban Institute. In New Jersey, they’re 2.32 percent, and in lowest-taxing Hawaii, they’re 0.27 percent. (The lowest among mainland states is Alabama, at 0.46 percent.)All the states that ranked ahead of Illinois in the 2007–11 chart saw their tax rates go up in 2012. But the rate in Illinois went up more…

What’s moving us up the list? Home values are down but taxing bodies’ appetites are up, as Costin sees it. Illinois home values fell farther and are improving more slowly than those in many other states. The latest Case-Shiller index data, which came out on New Year’s Eve, showed that while home values in the nation’s ten major cities have recovered, on average, to June 2004 levels, they’re only back to February 2003 levels in Chicago. At the same time, Costin says, “most local taxing bodies do the maximum increase they can do under the law each year.” Lombard and Lake County are notable exceptions, he says; both have reduced their rates.

When they’re asking for more total dollars in taxation on a smaller pot of aggregate home values, the tax rate is what goes up. It doesn’t necessarily mean that the amount of tax you have to pay goes up, as Cook County pointed out earlier this year.

While there are concerns about the federal budget as well as the monetary issues of the state of Illinois, these rising property taxes hint at another concern: the need for tax revenues for lower levels of government. These property taxes primarily go for local schools, cities, and other local services. See where property taxes go in one town in DuPage County. Or how one Chicago suburb is thinking about privatizing more of its roads to pay for their maintenance.

It is interesting to note that property taxes are higher in specific states but not others. For example, much of the Northeast and upper Midwest has higher property taxes but while Kansas and Texas do, Oklahoma does not. And, California does not. In a state where one city went bankrupt are others have looked to outsource municipal services, the property tax revolts of the 1970s (see Prop 13) have successfully kept property tax rates down (though home values are still high). Yet, if the money doesn’t come through property taxes, it likely comes from other sources.

CNN’s Chicagoland reality series featuring Rahm Emanuel premieres at Sundance

Here is some activity regarding the upcoming Chicagoland series on CNN:

The William Morris Endeavor clients decided to ask that their agency not represent them in the deal so as to avoid a conflict of interest when covering Chicago mayor Rahm Emanuel, brother of WME co-CEO Ari Emanuel. The agency agreed with the decision…

The filmmakers tell The Hollywood Reporter that the project is an evenhanded look at the mayor and the city, which was rocked by a bitter teacher’s strike and has grappled with a high murder rate. “The teacher’s union thought we were with Rahm, and Rahm thought we were the teacher’s union,” Benjamin says.

The pair gained extraordinary access to Rahm Emanuel, which was facilitated by David Axelrod, the Chicago-based former campaign adviser to President Barack Obama. Rahm was Obama’s first chief of staff and helped him get elected in 2008. Ari was instrumental in mobilizing the Hollywood donor community to back Obama.

Levin and Benjamin shot footage over an eight-month period in which the murder rate did go down, but they say they were prepared to cover the city’s story however it unfolded. “We expect criticism,” says Levin. “So long as it’s from all sides, we’ll be happy. If someone says we’re too kind or too critical to one side, that wouldn’t be good.”

In a series like this, I imagine there will be plenty of unhappy viewers. Regardless, it should be interesting to see how Chicago and its mayor are portrayed. City effectively responding to 21st century challenges or superactive mayor needed to help a city escape its own troubles? Additionally, I think it will be difficult to convey the complexity of a global city like Chicago in eight episodes and by focusing on its leader. Leaders are important but they don’t dictate everything happening in a city of nearly 3 million people.

Tight American rental market

Even though the housing market may be showing some good signs, the rental market is still tight:

Reis’ fourth-quarter data showed that apartment vacancies around the country continue to tighten. They’re at 4.1 percent. For renters, it’s only getting tougher and tougher…

New Haven, Conn., moved into the No. 1 spot with the lowest vacancy rate, 2.2 percent. It was followed by San Diego, San Jose, New York City and Buffalo, all of which had vacancy rates of 2.7 percent or tighter.

Elsewhere around the country, the middle of the pack still had tight markets: Chicago (ranked 30th) and Baltimore (33rd) were among those that had 3.7 percent vacancies; Los Angeles (18th) had 3.1 percent; Dallas and Orlando (58th and 60th, respectively) had 4.9 percent vacancies.

Shouldn’t this lead to the construction of more units?

Though we’re at a 4 percent vacancy rate — incredibly low, by historical standards — construction is just at its historical average.

But we’re just now seeing an increasing ramp-up of construction activity. In the third quarter, we saw about 42,000 units completed, the most that we’ve seen on a quarterly basis since 2003.

Rental demand may be high – and some are predicting long terms upticks in renting due to this economic crisis which will scare people away from owning – but it sounds like the economy is still not strong enough to support a lot of new construction. What will it take to start providing significantly more rental units?