Tag Archives: creative class

The financial benefits of not living in sprawl

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Richard Florida argues “The neighborhood you live in can have a huge effect on your ability to spend or save, do the kind of things you really want to, and navigate the ongoing economic crisis.” Cars are indicted here as they require large sums of money to maintain and operate.

Based on this data, Florida argues that we need to rethink what we promote:

There remain some pundits and politicians who continue to believe that we need to get housing back to its former levels. But that won’t work this time. The old Fordist housing-auto-energy economic model which helped bring on the crisis in the first place has reached its sell-by date. Our continued commitment to (and massive subsidizing of) it will only further erode the financial situation of middle-class and working families and hold back the recovery.

It’s becoming increasingly apparent that the typical tools of monetary and fiscal policy are proving insufficient to sustain the recovery. Our future prosperity requires that we to begin to shift precious resources from houses, cars and energy toward investments in new skills, technologies, and industries that can generate higher paying jobs and improve overall living standards.  And that in turn requires a new geography built around denser (more innovative and productive), more walkable, transit-oriented (more efficient) communities.

If American families and policy-makers don’t see being green or sustainable as reason enough to change the way we live, perhaps seeing the very tangible financial rewards that accrue to those who do will help them change their minds. As the poet wrote, “You must change your life.” The numbers speak for themselves.

In addition to being more green, Florida is making the pragmatic argument that denser, more walkable communities actually help improve the financial situations of residents.

This may be compelling evidence – Americans can be persuaded by financial incentives – but I still think it is an uphill climb against an American culture that prize cars, driving, and the freedom that it represents. Changing this mindset is difficult even with at least 38 years of evidence that gasoline will not always be cheap or plentiful, evidence that suggests long commutes harm relationships, and research showing people aren’t necessarily happy in the suburbs. People are willing to trade a lot for the vision of the dream of the single-family home in the suburbs.

What would help is an alternative, positive vision that would celebrate denser neighborhoods and more urban life. Rather than simply attack the suburbs, sprawl, and McMansions, how about images of more urban life that can combine the best of both city and suburban life? The narratives regarding denser lives tend to be about chaos and a lack of control – think of the recent stories of “flash mobs” and “wilding” in Chicago. This could change with younger generations as they grow up with different aspirations and values. As Florida has argued, younger people are attracted by more exciting urban areas and they have the potential to change social patterns as well as promote new types of policies. But this vision needs to include family life, not just 20-something or single life, in denser areas.

Chicago area businesses looking to move from suburban campuses

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The suburbanization boom after World War II was not just about the movement of residences to the suburbs: it included a large migration of jobs and business headquarters to suburban locations, often large “campuses.” Crain’s Chicago Business suggests this trend may now be going in reverse as Chicago area business look to leave these suburban campuses:

Fleeing urban decay, companies like Motorola Inc., Allstate Corp. and Sears Roebuck & Co. built fortress-like complexes on the fringes of metropolitan Chicago. Jobs and residential development followed, fueling sprawl and congestion across the region.

Today, Sears Holdings Corp. and AT&T Inc. are looking to escape their compounds in northwest suburban Hoffman Estates. A shrunken Motorola has space to let in Schaumburg. Sara Lee Corp. eyes downtown office space after less than a decade in Downers Grove. Companies from Groupon Inc. to GE Capital hire thousands in Chicago while their suburban counterparts shed workers.

All reflect changes in the corporate mindset that spawned the campuses dotting outer suburbia. Empire-building CEOs from the 1970s through the 1990s craved not only cheap real estate but total control of their environments. They created self-contained corporate villages that cut off employees from outside influences.

As the 21st century enters its second decade, many companies are discovering the drawbacks of the isolation they sought. Hard-to-get-to headquarters limit the talent pool a company can draw on and feed a “not-invented-here” insularity that ignores major shifts in industries and markets.

This article suggests more corporations seek the opportunities that cities provide. Chicago certainly has opportunities – it was #6 in Foreign Policy’s 2010 global cities index. I wonder how much of this is driven by different factors:

1. Young people (college graduates, recent graduates) living in the city. We have some evidence that younger generations want denser environments and cultural opportunities. This would seem to go along with Richard Florida’s “creative class” idea that people and businesses move to exciting, innovative, culturally hip places.

1a. As a corollary, suburban places are no longer hip. These campuses are now decades old and involve stodgy suburbanites driving to stodgy workplaces. This is kind of interesting because the technology that would make instant connections possible may still not be enough to keep companies from relocating to the city.

2. Is there a particular business or city that has spurred this new thinking? If this has been shown to “work” elsewhere, it wouldn’t then be too surprising if other businesses followed suit.

3. Some have suggested that some businesses originally moved to the suburbs because their CEOs had already made the move and wanted their workplace to be closer to their homes. Could it be that CEOs and other important people in these corporations are now living in the city?

4. Tax breaks. This has been in the Chicago news recently with several companies, including Motorola and Sears, threatening to leave if they don’t get a better deal. Do these businesses get better incentives from the city of Chicago? Can increased tax breaks keep these campuses in the suburbs?

Wellbeing among American cities

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Gallup surveyed 188 metropolitan areas in the United States in 2010 and then ranked the cities according to their Well-Being Index. Here is the top 5:

1. Boulder, Colorado

2. Lincoln, Nebraska

3. Fort Collins-Loveland, Colorado

4. Provo-Orem, Utah

5. Honolulu, Hawaii

Here is some information on how the index was calculated:

The Gallup-Healthways Well-Being Index score is an average of six sub-indexes, which individually examine life evaluation, emotional health, work environment, physical health, healthy behaviors, and access to basic necessities. The overall score and each of the six sub-index scores are calculated on a scale from 0 to 100, where a score of 100 represents the ideal. Gallup and Healthways have been tracking these measures daily since January 2008.

In terms of analysis of these findings, Richard Florida has some thoughts. My guess is that Florida will tie these findings to own ideas about the creative class, a group that tends to live in cities that are college towns, have younger populations, higher level of innovation, and more cultural opportunities.

(A side note: I’m not sure who came up with the headline for Florida’s thoughts but calling these “America’s New Happiest Cities” may not exactly be the same things as measuring “well-being.” The Gallup index goes beyond “life evaluation” and “emotional health” to include other factors like physical health and workplace environment.)

Conference on colleges and universities as critical part of regional development

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A recent conference suggested that colleges and communities could cooperate more closely in order to foster economic development:

Colleges must play a greater, and more deliberate, role in helping regions innovate and thrive in an increasingly competitive and globalized economy, speakers urged this week at a conference on higher education and economic development.

Economic development is “no longer about attracting businesses,” said Sam M. Cordes, co-director of the Purdue Center for Regional Development. “It’s about attracting people, about attracting talent.”

Participants in the two-day conference, “Providing a Uniquely American Solution to Global Innovation Challenges: Unleashing Universities in Regions,” delved into the various ways colleges can help build stronger local economies, including acting as conveners for conversations about regional development, aligning their curricula with local elementary and secondary schools, and producing and retaining well-educated workers.

This is a popular topic these days, particularly in difficult economic times. People like Richard Florida have linked the presence of research universities and their graduates with cities that have a larger concentration of the “creative class,” which then leads to more development. There are a lot of cities and communities that hope they can tap the local college in order to boost the local economy. It looks easy: the local university has a bunch of PhDs and eager students.

But how exactly this is supposed to happen is less clear.  I remember the battle that took place in South Bend in the last five years. The University of Notre Dame wanted to expand and partner with the community to construct an “innovation center” that would blend the university and businesses. However, this became controversial as it involved bulldozing a number of houses, bringing up some of the old issues between the wealthy school and less wealthy city.

It sounds like this conference offered more specific ideas of how the university can partner with local communities and businesses in order to prompt growth. Since each school and community offers unique advantages (and disadvantages), such partnerships are likely to take a good amount of work. Both the school and community need to feel that they will benefit from the time and hard work that is necessary to put something together.

Richard Florida cited by UK Conservatives

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The Economist takes a look into the background of urban thinker Richard Florida, who has recently been cited by leading British Conservatives. Here an excerpt about Florida’s background:

Although less well-known in Europe, he is as close to a household name as it is possible for an urban theorist to be in America. In his best-selling books, highly paid speeches and frequent television interviews, Mr Florida has extolled one core idea: that the creative sector is the growth engine for Western economies as menial work migrates to developing countries.

Mr Florida’s definition of creative goes beyond the obvious artists and musicians to include anyone open to new ideas. He says businesses must give space and flexibility to these freethinkers, and that cities must attract lots of them to be successful. This means they must be green, clean, tolerant and cultured, typically with large gay and ethnic-minority populations…

His superstar status, as much as his ideas, have made him enemies. One Canadian newspaper columnist, fed up with his high profile after he became head of the Martin Prosperity Institute at Toronto University three years ago, started handing out badges that read “Please stop talking about Richard Florida”. More seriously, other academics have denounced his “snake oil economics”, his use of statistics and his confusion of causation and coincidence. Joel Kotkin, another writer about cities, points out that over the past 20 years far more jobs in America have been created in boring suburbs than in the multicultural city centres beloved of Mr Florida.

He describes himself as fiscally conservative and socially liberal.

There are some interesting things to think about based on this story:

1. How much evidence is there that Florida’s ideas can bring about a “quick fix” to depressed locations? In England, are they looking to his ideas for a quick turnaround or is this a long-term project?

2. I’ve seen and read some of this criticism of Florida by other academics. Some of it did seem based on envy of his status and money-making abilities – his books have done well, he is an expensive speaker, and he has had the ear of a number of politicians. At the same time, there are legitimate concerns about whether his ideas work in the real world. I’m particularly struck by Kotkin’s criticism as noted in this story – job growth in America has been primarily in the suburbs.

3. In another part of the story, The Economist hints that politicians who court thinkers or adopt ideologies can often be left struggling to convey or act upon these ideas. On one hand, it is remarkable that Florida gets so much attention from politicians – few academics ever draw this kind of attention. On the other hand, when social scientists and urban thinkers do have a chance to influence politics, what are the outcomes?

h/t The Infrastructurist

Kotkin: election results “the smackdown of the creative class”

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Amongst pundits sifting through the election returns, I have only seen Joel Kotkin explore how votes broke down by broad location categories: cities vs. suburbs. Before the election, Kotkin suggested that both parties were fighting over middle-class suburbanites (and the Democrats were losing at this). Afterward, he continues this argument and suggests the creative class and bourgeois bohemians were overwhelmed by the middle-class, suburban vote:

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

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

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

I would love to see some actual numbers on this. It seems like Richard Florida could post some maps like he has recently been doing on Atlantic.com that would correlate voting patterns with the presence of the creative class.

I wonder if Kotkin would suggest this is a continuation of the older “culture wars” idea (progressives vs. conservatives, religious vs. non-religious, etc.) or a new trend (the creative class vs. middle-class suburbanites).

More broadly, how big will the creative class in America grow to be? Is it possible, or even desirable, that a significant number of Americans become part of the creative class or the bourgeois bohemians?

Cities using art as a development tool

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USA Today describes the attempts of some cities, including Grand Rapids, Michigan, to use art as a development and economic tool.

This is not a new phenomenon. Richard Florida, in particular, has promoted this with his ideas about the “creative class.” But, perhaps we will see a rise in this sort of activity as cities look for non-traditional economic foundations.

h/t The Infrastructurist