Dwindling yet still present pay phones

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Even as the number of pay phones has dropped dramatically in recent decades, they can still generate money:

In 1999, you could still plunk a coin into one at 2 million phone booths in the United States. Only 5% of those are left today. About a fifth of America’s 100,000 remaining pay phones are in New York, according to the FCC…

But pay phones remain a steady business for some of the 1,100 companies operating them across the country.

Pay phone providers reported $286 million in revenue in 2015, according to the most recent FCC report. They can still be profitable, particularly in places where there isn’t cell phone or landline coverage, said Tom Keane, president of Pacific Telemanagement Services. Keane’s company operates 20,000 pay phones around the country.

Yet, even if pay phones help serve the need for calls in certain circumstances, the article says the future of pay phones is “bleak”:

More low-income Americans, once a steady revenue stream for pay phones, have turned to prepaid phones or receive subsidizes on cellphones through the federal government’s Lifeline program. Ironically, providers contribute to the Lifeline fund on their phone bill taxes.

Four quick thoughts:

  1. What is most intriguing to me here is not that pay phones are dwindling – the rise of smartphones in everyone’s pockets may be just as remarkable – but that there may still be a market for a limited number of pay phones. Is there still a business opportunity in the remaining phones?
  2. Imagine something drastic happens to the cell phone network. How would people communicate over long distances with the decline of pay phones and landlines?
  3. What other features of physical spaces are still around but are also anachronistic like the pay phone? Perhaps the water tower on top of some buildings or the occasional hitching post.
  4. Last thought: it takes some work to have sufficient change to regularly use pay phones. I realized again recently that I rarely make cash purchases and this means I generate a lot less spare change than I did before. If I really needed to use a pay phone, it would take some work to get some change.

The Chicago Tribune in 1968 and conservatives today: sociologists excuse rioters

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In an overview of Martin Luther King Jr.’s final months, the Chicago Tribune quotes its own take on urban riots:

King’s opponents saw his proposed march as an invitation to rioting. In the 1960s, one inner city after another had exploded in deadly and destructive riots. King explained the violence with a metaphor: “A riot is the language of the unheard.”

The Tribune rejected that argument in a Jan. 21, 1968, editorial: “Every time there is a riot in the streets you can count on a flock of sociologists rushing forward to excuse the rioters.” King’s “nonviolence,” the Tribune added, “is designed to goad others into violence.”

Simultaneously, King was under attack by a younger generation of black militants who rejected his pacifist philosophy as weak. Their conclusion was echoed by Adam Clayton Powell Jr. “I don’t call for violence or riots, but the day of Martin Luther King has come to an end,” said Powell, a longtime U.S. congressman from New York.

Lest the Tribune let this idea of sociologists excusing riots be swept into the dustbin of history, this idea exists in recent years as well. In 2013, the conservative Canadian Prime Minister said we should not “commit sociology” when addressing terrorism. Conservative columnist George Will used a similar phrase in 2012 when discussing the shooting in Aurora, Colorado. Of course, explaining social phenomena is not the same as excusing or condoning it.

Now that I have seen this sort of explanation multiple times, it is clearly less about sociology and how social science works and more about political ideology. Sociologists, by a wide majority, are liberals. Those who tend to disparage sociology in public phrases like these are conservatives. The implication is that sociologists and liberals are willing to allow violence and disorder if it serves a particular political end. And, this may have just enough of a grain of truth to be a repeatable claim.

Speculation: more Americans choose to pursue unretirement to find meaning

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Various data points show more Americans continuing to work even when do not need the money at retirement age:

Unretirement is becoming more common, researchers report. A 2010 analysis by Nicole Maestas, an economist at Harvard Medical School, found that more than a quarter of retirees later resumed working. A more recent survey, from RAND Corporation, the nonprofit research firm, published in 2017, found almost 40 percent of workers over 65 had previously, at some point, retired…

Even more people might resume working if they could find attractive options. “We asked people over 50 who weren’t working, or looking for a job, whether they’d return if the right opportunity came along,” Dr. Mullen said. “About half said yes.”

Why go back to work? We hear endless warnings about Americans having failed to save enough, and the need for income does motivate some returning workers. But Dr. Maestas, using longitudinal data from the national Health and Retirement Study, has found that the decision to resume working doesn’t usually stem from unexpected financial problems or health expenses…

Researchers note that older workers have different needs. “Younger workers need the paycheck,” Dr. Mullen said. “Older jobseekers look for more autonomy, control over the pace of work. They’re less concerned about benefits. They can think about broader things, like whether the work is meaningful and stimulating.”

One of the primary ways that adult Americans find meaning is in their jobs. Not only does a job help pay the bills, a job has become a reflection of who you are. Think of that normal question that leads off many an adult conversation: “What do you do?” With a shift away from manufacturing and manual labor jobs, service and white-collar jobs can encourage the idea that our personality and skills are intimately tied up with our profession.
Put this emphasis on an identity rooted in a job or career together with a declining engagement in civic groups and a mistrust in institutions. Americans are choosing to interact less with a variety of social groups and this means they have fewer opportunities to find an identity based in those organizations. We are told to be our own people.
Imagine a different kind of retirement than the one depicted in this article: older Americans finish a long working career and then find time to get involved with extended family life or various causes, secular and religious, where they can provide both expertise and labor. Where would many congregations or civic groups be without the contributions of those who are retired and now can devote some more time to the public good? What if the child care needs that many younger families face be met with grandparents who could consistently help? What if retired Americans could regularly mentor children and teenagers who would benefit from wise counsel and a listening ear? That is not to say there are not plenty of retirees who do these things; however, this approach involves a broader look at life satisfaction that goes beyond a paying job.

Forget smart cars; we should at least have smart traffic lights everywhere

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Getting to the point where most or all American drivers have safe and reliable driverless cars will take time. In the meantime, why don’t we have smart traffic lights or at least every traffic light operating with sensors?

There are several intersections near my house and work that clearly do not have sensors. You pull up in your vehicle and regardless of time of day or how many others want to go the same way as you do, you will wait a full light cycle. Some of these lights are one to one and a half minutes long. Sometimes this makes sense: one road clearly has more cars. Yet, often this full period passes with few to no cars going through the light.

But, let’s go further. I’ve also run into situations where the sensors might just be too sensitive. This occurs particularly between 9 PM and 5 AM when traffic is light on major roads. A single vehicle wanting to turn onto the major road can stop traffic. If you have a few of these on a single trip, this can be frustrating. Why not have coordinated light signals along major corridors? Cities and suburbs do not necessarily have to go to full-blown smart systems that hope to coordinate all traffic; even just doing this on a few main roads with significant amounts of traffic could help ease congestion.

Perhaps one issue is cost: what municipalities or other governments (depending on who has jurisdiction over the road) want to spend money on sensors and devices? One of the supposed benefits of driverless cars is that they will allow for more flowing traffic through coordination across vehicles. However, in that scenario the cost of less congestion is pushed to the car owners who have to purchase such a vehicle. Sensors at major intersections or at all intersections would not require anything or much from drivers. Yet, I bet you could make an argument that putting money into better intersections will be a cost savings in the long run with less time spent in traffic.

Subprime mortgages still around

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Although they do not appear to be anywhere near the common product as they were in the 2000s, subprime mortgages are still available:

Financial Times reports that subprime mortgage bond issuance doubled in the first quarter of 2018 compared to a year ago, going from $666 million to $1.3 billion. Furthermore, it quotes a financial analyst predicting that issuance for the year will hit $10 billion, which is more than double the $4.1 billion issued last year. For context, the value of American subprime mortgages was estimated at $1.3 trillion in March 2007.

Since the financial crisis, mortgage-backed securities have been almost entirely issued by government-sponsored mortgage facilitators Freddie Mac, Fannie Mae, and Ginny Mae. And since the financial collapse, those organizations have refused to insure subprime mortgages. The Dodd-Frank regulation passed after the collapse put tight rules around subprime lending that for awhile effectively killed the practice.

But over the last couple years, specialty firms have jumped back into the subprime market, rebranding it as “noprime.” Investors hungry for bonds with higher yields have generated enough demand for those loans to be secularized, just as they were in the run-up to the financial collapse. The result is a rapidly expanding subprime mortgage market.

That subprime mortgages would seep back into the market right now is curious, given the current state of housing. The slow pace of new home construction and few existing homes for sale has led to an inventory shortage that has pushed home prices well out of reach for many low- and middle-income prospective homebuyers.

Subprime mortgages could be lucrative for some, even if it is now widely recognized that they are not a good idea in general for potential homeowners or the broader market and society.

I think the bigger question is whether subprime loans could once again become a mainstream product. What if the housing market continues to be sluggish or potential buyers have a difficult time securing conventional loans or the market suddenly heats up and lots of people want mortgages? Even with the fallout and the long recovery after the burst housing bubble of the 2000s, someone within the next decade will make a public plea for loosening regulations on subprime mortgages or will suggest subprimes are a necessity for serving certain portions of the market.

Poverty measure that goes beyond income or financial resources

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How exactly to define poverty  is an ongoing conversation (earlier posts here and here) and here is another proposal that would include two additional dimensions:

If the point of measuring poverty is to capture well-being, we should reframe poverty as a form of social exclusion and deprivation. “Poverty has a wider meaning than lack of income. It’s not being able to participate in things we take for granted in terms of connection to society, but also crime, and life expectancy,” argues Rank. In an era when most deaths by guns are suicides, addiction rates are rising, and U.S. life expectancy is dropping and increasingly unequal by race and education level, capturing people’s well-being and designing solutions beyond material hardship is paramount.

Both of these dimensions have grounding in sociological discussions of poverty. The difference between absolute poverty and relative poverty covers similar ground to the idea of deprivation. There may be a minimum amount of resources someone needs to survive but this is different than comparing survival to normal or regular participation in a group or society. This is particularly compounded in today’s world where it is so easy for anyone – rich or poor – to at least how how others live (though this is certainly not a new issue).

Social exclusion can be very damaging as it limits opportunities for particular groups and often prevents the ability to help shape their own lives through political or collective action. This reminds me of William Julius Wilson’s work where economic troubles lead to the social exclusion of poor neighborhoods from broader society. Other researchers, such as Mario Small in Villa Victoria, have examined this idea more closely and found that some members of poorer neighborhoods are able to develop social networks outside their neighborhood of residence but these forays do not necessarily extend advantages to the whole community.

If researchers did decide that deprivation and social exclusion should be part of poverty measures, it would be interesting to see how the measures are standardized for social science and government data.

The ongoing stark inequality of Chicago and other major cities

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Alana Semuels discusses the inequality present in the global city of Chicago but it reminds me that (1)  sociologists have studied this for roughly 100 years even (2) as conditions have both changed and stayed the same.

The contrast between a seemingly prospering city and groups and individuals who cannot access this prosperity is an old theme in the Chicago School of urban sociology. In The Gold Coast and the Slum, Zorbaugh explains how some of the wealthiest and poorest Chicagoans can live in such proximity. Two neighborhoods that are geographically close are worlds apart socially. This is little different from descriptions of industrializing cities in England in the mid-1800s (which helped prompt the work of Marx and Engels) or examining today’s megacities in developing nations where a wealthy core is surrounded by slums and shantytowns.

The reasons for this disparity are both similar and different. Semuels sums up the two major issues:

Why are large swaths of Chicago’s population unable to get ahead? There are two main reasons. The first and most obvious is the legacy of segregation that has made it difficult for poor black families to gain access to the economic activity in other parts of the city. This segregation has meant that African Americans live near worse educational opportunities and fewer jobs than other people in Chicago. City leaders in Chicago have exacerbated this segregation over the years, according to Diamond, channeling money downtown and away from the poor neighborhoods. “Public policies played a huge role in reinforcing the walls around the ghetto,” he told me.

The second factor is the disappearance of industrial jobs in factories, steel plants, and logistics companies. Half a century ago, people with little education could find good jobs in the behemoths that dotted Chicago’s south and west sides. Now, most of those factories have moved overseas or to the suburbs, and there are fewer employment opportunities here for people without much education. Chicago underscores that it’s not just white, rural Americans who have been hard hit by the disappearance of manufacturing jobs.

The segregation of one hundred years ago is still with us, even if it has changed form (from overt discrimination to more covert means). The business district of Chicago was a thriving place 100 years ago as many of the poorer and less white neighborhoods languished. The job front has changed; yet, it is not as if the manufacturing jobs that started appearing in cities with the Industrial Revolution were all that helpful for the lower classes at the time (again think of Marx and Engels).

On the whole, it is helpful to regularly remind people of the complexities of cities. Cities should not be viewed solely as their impressive skylines or booming economies. Even the leading cities of the world are home to many less advantaged residents. Whether the gaps in cities themselves could go a long ways toward determining whether broader social inequalities can be successfully addressed.

Chicago’s road construction in the long term

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Curbed Chicago provides an update on the city’s work to resurface streets:

[T]he city rolls out plans to resurface 135 miles of streets, according to an announcement from the mayor’s office.

The work is expected to begin mid-April when the asphalt plants open for the 2018 construction season. The Chicago Department of Transportation and the Department of Water Management are leading the project and plan to resurface at least 275 miles by the end of the year.

Since 2011, more than 1,850 miles of streets and alleyways have been resurfaced (that’s out of the city’s 4,600 miles of roadways).

If these numbers are roughly consistent on a yearly basis, it would take 17 years to resurface everything. On the city’s page for Streets, Alleys, and Sidewalks, there is no description of how long an overall cycle might take. But, there might be some mitigating factors affecting which roadways are addressed: particularly bad pothole seasons that cause damage and draw attention and roads that are used much more than others.

And while residents may not be fond of all of this construction, roadways are a constant work in progress. Given the American emphasis on driving, they get a lot of use for commuting, trips within the community, and delivering goods and services. Poor roads do not look good for the local government and could impede activity. Residents can get unhappy pretty quickly if they feel their tax dollars are not leading to good roadways. Yet, if people truly do not want construction, they should really consider driving less and helping to create places with less driving so that the roads last longer.

What could kill the McMansion, SUV, and suburban way of life: $10 a gallon gas

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One of the ways that the American suburban way of life of single-family homes and driving could come to an end is really expensive oil. Here is one prediction of the fallout:

For decades, we’ve lived — and driven — in denial, somehow assuming we have the “right” to cheap gasoline, and therefore, low-cost transportation. Now it’s time to face reality and consider what will happen when — not if — gas hits $10 a gallon, not because of taxes, but because we will use up the planet’s petroleum…

Highways

Rush-hour on Interstate 95 is a breeze as half of all motorists can no longer afford to drive. But the highways are riddled with potholes as the price of asphalt — made from petroleum — quintuples, making it impossible to maintain the roads because gas tax revenues have dropped with decreased sales. With more people working from home or on flex-time, traffic congestion is a thing of the past.

Homes/offices

With home heating oil at $12 a gallon, people close off rooms in their “McMansions” and huddle in the few remaining spaces they can afford to heat, usually with wood stoves, which are also in short supply. Office buildings, by law, will be allowed to heat to no more than 60 degrees in colder months. Sweaters become a fashion rage…

Around town

Local traffic drops as people consolidate their few truly necessary shopping trips. Because farmers are so dependent on oil (for fertilizers, packaging and transport), food prices skyrocket. Food imported out of season becomes an occasional treat. Few can afford to eat out at now-chilly restaurants dealing with the same food shortages. Wagons and carts, bikes with racks, mopeds and scooters replace SUVs. Kids take the school bus daily instead of being chauffeured by mom. Suburban housing prices continue to fall as people flock to the walkable cities with good mass transit. Small town taxes rise, encouraging further migration. Schools can’t afford good teachers who must still commute from far away due to lack of local affordable housing.

If gasoline was indeed $10 or more a gallon, I imagine a lot would change. Perhaps even more so if there was a sudden spike to that price range instead of a gradual increase that would provide time for people and communities to adjust. Even with significantly higher gas prices, some would be very reluctant to give up the American lifestyle organized around driving.

One question to ask in this scenario is how quickly society could adjust. The American suburbs have been decades in the making. How quickly could they be dismantled? It is common now to hear social scientists, policymakers, and others discussing resilient cities and communities. Could the country adjust if the suburbs became unsustainable due to high gas prices? (According to this one prediction, we should all have bicycles on hand and hope we live close enough to mass transit lines.)

A second question: if the American government has spent many resources in support of the suburban way of life (such as socialized mortgages), would the various government actors try to sustain suburbia in the face of such a threat? Just because living in suburbia might be tougher does not necessarily mean Americans will stop wanting to live there.

What if Americans like the suburbs?

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Critics of the American suburbs have long charged that suburban lives are incomplete, diminished, or not all they are cracked up to be. Yet, Americans keep moving to suburbs and aspiring to live there. I was reminded of this by seeing a quote from Bennett Berger’s 1960 study Working-Class Suburb: A Study of Auto Workers in Suburbia:

The critic waves the prophet’s long and accusing finger and warns: ‘You may think you’re happy, you smug and prosperous striver, but I tell you that the anxieties of status mobility are too much; they impoverish you psychologically, they alienate you from your family’; and so on. And the suburbanite looks at his new house, his new car, his new freezer, his lawn and patio, and, to be sure, his good credit, and scratches his head bewildered.

Why can’t Americans take the hint and stop moving to or living in the suburbs when the problems (an auto-dependent lifestyle, emphasis on private houses, limited community life, use of lots of resources to sustain daily life, etc.) are so clear? There are two possible answers to this question:

  1. Suburbanites are being duped or pushed by larger forces to live in the suburbs. There is little doubt that the federal government has promoted suburbia over decades. If they truly were free to choose, Americans would pick the dull or anxious life of the suburbs.
  2. Americans truly do want to live in the suburbs. They like the lifestyle associated with it with the ability to own a house and drive a lot. The American Dream, even if it is just aspirational and not easy to attain, involves moving to the suburbs.

At this point, Americans have been choosing the suburbs (with generous pushes and promotion from various sources) for over a century when they have the means to do so. To reverse this pattern would require a lot of change.