Tag Archives: economic crisis

A growing number of “encore careers”

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Retirement is an interesting topic these days in the United States: can people retire after the losses in the recent economic crisis? How will society pay for Social Security and medical benefits when all those Baby Boomers retire? How will states (and other organizations) pay for pensions that have been underfunded?

One answer: have those who have retired enter an “encore career.”

Daly is part of the growing “encore careers” movement — an effort to match older workers who can’t or don’t want to retire with public service jobs that benefit society. The movement, begun in the late 1990s, has spawned non-profit groups and programs from Boston to Portland, Ore., aimed at helping older workers find new work. Many of the programs are run by people who have made the transition.

At a time when 77 million Baby Boomers ages 46-65 are moving toward traditional retirement age, analysts say the movement could grow exponentially in the coming decades. A 2008 survey by MetLife Foundation and Civic Ventures, a national think tank on boomers and work, found more than 5 million Americans in encore careers. Half of those ages 44-70 expressed interest in them.

Moving from one career to a more altruistic job late in life isn’t easy, however. Analysts say there aren’t enough of those jobs yet, the pay is usually low and employers often favor younger applicants.

It seems to me that there is a larger issue underlying these practical obstacles: as a society, do we value the kinds of contributions older citizens can make? Those who have retired or are nearing retirement have a wealth of experience, related to jobs and working but also a variety of important life lessons and skills,  that the rest of society could benefit from. But if we are a society that tends to value youth and novelty, then these encore careers might not be something we encourage.

Ultimately, a movement like this could end up being a nice solution to some of the demographic and financial issues that face the country in the next few decades. If the number of these jobs could grow, those who have retired can share their experiences and wisdom while also earning some money in order to ease the financial burden on broader society.

Ageism the latest prejudice to be studied?

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A sociologist at Virginia Tech suggests ageism is now receiving more scholar attention:

Ageism is the latest form of prejudice being studied, although certainly not new in American culture, according to Toni Calasanti, professor of sociology in the College of Liberal Arts and Human Sciences at Virginia Tech. Her research is the lead story in the winter 2011 Virginia Tech Research magazine.

We tend to resist signs of aging and want to keep passing for younger, Calasanti said, since being old affects our social status. She conducts interviews and studies Web pages, past scholarly articles, and other research to look at ageism. While people, including academics, do not want to think of themselves as growing old, “ageism oppresses the people we will become, cuts off our options for collective action now, and arms us for battles we cannot win alone, while leading us to ignore that which binds us,” she said.

With America’s emphasis on youth, I’m sure social scientists could find plenty of examples of this. It seems like there are plenty of anecdotal stories as well from the recent economic downturn with workers getting laid off.

Demographic trends suggest many Western nations will have a large proportion of older residents in the next few decades. If ageism continues, it will be actions made against a growing segment of society.

Places that might be deserted due to a lack of homebuyers

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The issue (amongst many) in the ongoing economic malaise is a lack of homebuyers. To have a hot housing market, such as happened in much of the 1990s and some of the 2000s, you need both sellers and buyers. What happens if this temporary trend of a lack of buyers turns into something less than temporary?

One suggestion is that certain areas will be deserted:

Many economists argue that the housing market may take four or five years to recover. Even if that’s proven to be true, the all-time highs of 2006 may never be reached again.

The devastation in some regions will never be repaired. Parts of Oregon, Georgia and Arizona have become progressively more deserted. Since jobless rates may never recover, there is little reason to hope that the populations in these areas will ever rebound. Some homes will be torn down in these pockets of high foreclosures in the hopes that reducing supplies will boost prices. Whether that idea will work in hard-hit areas such as Flint, Mich., and Yuma, Ariz., remains to be seen.

If this comes to pass, this would be an interesting period in American history. Yes, we do have some instances of population loss: the “ghost towns” of the Old West come to mind as people poured into a region and then seemed to leave just as suddenly. Rust Belt cities like Detroit and Buffalo and Pittsburgh have been experiencing a slow but steady population drain over the last few decades. And I have tried to find evidence of “lost suburbs” – places that would go against the typical narrative of American suburbs continuing to grow in population and sprawl further out from cities.

But this prediction suggests that certain metropolitan regions might not have any hope of recovery. While some of these are Rust Belt places that already had issues (like Flint), others are newer, particularly locations Nevada, Arizona, and California. As a matter of public policy, what should be done? Should we prop up locations with government aid? Should we write certain areas off and let them slowly lose population until the critical population mass is gone? Is contraction worthwhile (something that has been debated now for several years regarding Detroit) or is simply losing a city or region a better option?

In the long run, the only possible solution seems to be to convince people that these areas are desirable places to live. One selling point, and this seems to come up a lot on the front page of Yahoo, is that these places have affordable housing. This may be the case but that won’t be enough to attract people – these areas need jobs, economic engines that will bring stability and profits to hard-hit regions. And which companies might be willing to step up?

Interestingly, Illinois ranks #5 on this list. It looks like this analysis says the main factors are a limited population growth and a severe loss in manufacturing jobs over the recent decades. Certain areas of the Chicago region seem more immune to this than others. DuPage County is populous and wealthy, partly due to the influx of higher-end, technology-related jobs that have entered the county since the 1960s. Because of this, DuPage County has an unemployment rate always multiple points below the national average.

County forest preserves benefit from economic downturn as they purchase cheaper land

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The reduction in land values has not been bad for everyone: the Chicago Tribune reports that Chicago area forest preserves have bought up more land than anticipated in the past few years. Among the findings:

Flush with $185 million from a 2008 bond sale, the [Lake County] district went on a buying spree, gobbling up some 3,400 acres of land. The second-largest forest preserve system in the state at 29,300 acres, the 53-year old district has grown by nearly 12 percent since the onset of the recession.

“We spent down the money quicker than we had anticipated, mainly because there were so many good buying opportunities for us in 2009 and 2010, especially,” Hahn said…

Founded in 1971, the McHenry County Conservation District has essentially doubled over the last decade to just less than 25,000 acres…

Though the Forest Preserve District of DuPage County’s biggest growth spurt was in the 1970s, the 25,000-acre district managed to add some 2,400 acres over the last decade…

Racing the clock against development in one of the fastest-growing counties in the country, the Forest Preserve District of Will County has added about 8,300 acres since 1999, increasing its holdings by about two-thirds to nearly 21,000 acres…

The timing has been more fortuitous in Kane County, where the Forest Preserve District has added nearly 12,000 acres since 1999, increasing its holdings by 170 percent.

The only county forest preserve that didn’t add a significant amount of land was Cook County which likely has little available land. There hasn’t been too much news about these acquisitions in the Chicago area, even as these land purchases have been funded by bond sales approved by the public.

Overall, this has presented these districts with an opportunity to purchase land they might not have been able to purchase in better times. Particularly in some of the booming counties, such as Will or McHenry, this opportunity may have been the last one before suburban growth took up too much land.

This does lead to another question: how much land should Forest Preserves aim to have? I know there are recommendations about how much parkland or open space there should be for a set amount of people. Is most of this newly acquired land going to be open space/natural settings or more developed parks and recreation areas? Would there be a point where the Forest Preserves will stop purchasing or will they keep acquiring land forever?

Generation R(ecession)

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This isn’t the first article or commentator to suggest that the current generation of roughly 20-somethings will be profoundly affected by the current economic malaise. But sociologist Maria Kafelas provides some insights into what she terms Generation R:

[Generation R] were born between 1980 and 1990. They’re the children of the baby boomers…

Working class kids said to us, “Listen, we’re going to be the first generation of Americans to do worse than our parents.” One young woman said, “I just feel burned. My friends who didn’t go to college, they don’t have debt and they’re making more an hour than I am.”…

[A working class girl who went to college] actually said, “I don’t even know why I spent the money.” The middle class kids were saying, “It’s very tough, I am filled with anxiety. I can’t sleep at night, but I still believe in a college degree. I’m just going to have to work harder and it’s going to take longer.” And those elite kids said, “Is there really a recession? It’s more like — it’s just harder for me to get a job.” And they’re sitting out this recession in a lot of ways…

They now talk a great deal about not wasting money; conspicuous consumption they say has gone out of fashion. And they don’t want to be seen as throwing money around when their families are eating into their resources to keep them afloat, etc.

If these characteristics do mark this current generation, their beliefs and practices would affect a number of institutions: higher education (and the education system in general), the economy (with more measured consumption practices), the relationship between generations (perhaps being the first generation in a while whose life is not markedly better), and perhaps more (government – for letting this all happen, financial institutions – for helping to make this happen, etc.).

But these comments from Kefalas also highlight the class differences that are exacerbated in these difficult economic times. For the elite, not a whole lot has changed. The middle class may still believe in college and the value of hard work. But it is the working and lower classes that might really have a lack of hope as the ways to move up, such as a college education, seem to be further out of reach.

The current problems of mixed-income development in Chicago

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The challenges facing a new Chicago mayor are large. Within a story about how growing Chicago’s middle class will prove to be one of these challenges, the Chicago Tribune summarizes the progress of the mixed-income developments that replaced a number of public housing high-rises:

For years, miles of high-rise public housing buildings stretched across the city’s skyline, blocking off entire neighborhoods from any hopes of improvement and further defining Chicago as an urban failure.

Today, much of the city’s stability rides on the success of the $1.6 billion effort launched by Daley in 2000 to tear down those public housing towers, sending thousands of Chicago’s poorest residents to new neighborhoods.

As part of the Chicago Housing Authority’s Plan for Transformation, the mixed-income developments going up in those neighborhoods are meant to be cornerstones for further growth, luring urban pioneers whose presence there would then attract new stores, restaurants, better schools and even more residential development.

The plan has worked in some neighborhoods, most notably, the area near the Gold Coast that was home to the infamous Cabrini-Green housing complex. Synonymous for decades with urban despair, the community has been transformed to a bustling center of urban chic, even before the CHA began demolishing the last high-rise building there last month.

But in other Plan for Transformation communities, the weak economy has altered plans for new development, generating concerns about an effort that has been blamed for destabilizing some neighborhoods.

Unable to attract enough interest for the middle-income homes that are the linchpins of those developments, several developers have recently won approval to instead build more rental homes, including public housing units and other low-income apartments.

That has stirred worries that pockets of poverty are being re-created, though a federal judge overseeing the effort has emphasized the importance of including the mixed-income units.

“If you get too much rental, and too much of it is low income, the neighborhood can get fixed with an image that is hard to change, so that’s an ongoing concern,” said Alexander Polikoff, a director at Business and Professional People for the Public Interest, a law and policy group that has monitored the Plan for Transformation’s efforts as part of a federal court settlement stemming from a 1966 class-action lawsuit.

In a 2009 report, BPI criticized developers for the “slow pace” of building on middle-income homes that could have been sold when the housing market was still strong.

Some thoughts about this summary:

1. We will still need time to assess the full impact of the Plan for Transformation.

2. For sources like the Chicago Tribune, just getting rid of the public housing high-rises is an important enough feat. Because Chicago no longer has these high-rises, is it now not an urban failure?

3. The emphasis here is on neighborhoods, collectivities of institutions and individuals, and their status. What about the residents who left the public housing high-rises. What sort of neighborhoods are they in?

4. Within the Plan for Transportation, how much planning was there for harder economic times? When the Plan was conceived and put into practice (late 1990s-2000s), it seems imperative that middle-class professionals would want to purchase in the mixed-income neighborhoods. If this pool of buyers is not available or is not as big, then the neighborhoods can’t be what they were intended to be.

Large but empty developments in China

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The New York Times reports on a large development recently constructed outside of Ordos, a city in northern China with about 1.5 million people. In an area that is planned to house 300,000, there are currently very few residents:

City leaders, cheered on by aggressive developers, had hoped to turn Ordos into a Chinese version of Dubai — transforming vast plots of the arid, Mongolian steppe into a thriving metropolis. They even invested over $1 billion in their visionary project.

But four years after the city government was transplanted to Kangbashi, and with tens of thousands of houses and dozens of office buildings now completed, the 12-square-mile area has been derided in the state-run newspaper China Daily as a “ghost town” monument to excess and misplaced optimism.

As China’s roaring economy fuels a wild construction boom around the country, critics cite places like Kangbashi as proof of a speculative real estate bubble they warn will eventually pop — sending shock waves through the banking system of a country that for the last two years has been the prime engine of global growth.

I wonder what it would be like to drive through such a large developed area that is basically empty. Such an experience would easily provide a context for a dystopian film. But in this case, the people haven’t been driven off by some odd disease or monster – it is the more prosaic, yet perhaps more potent, issue of economic trouble.

h/t The Infrastructurist

Another creative way to raise suburban tax revenue: a “toilet tax”

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Nassau County, New York is considering a new tax that will bring in revenue from non-profit organizations:

Critics call the sewer fee — a “toilet tax” in Nassau County. Next year’s budget — for the first time — calls for previously tax-exempt public school districts, library districts and fire districts to increase their budgets, raise taxes, and, they fear, pass along the financial burden to taxpayers.

Democrats in the legislature are blasting the Republican county executive’s proposed “water usage fee”– that would charge one penny per gallon of water entering Nassau’s sewage system. They claim it would bankrupt hospitals, schools and more…

But the county executive said his sewer reforms would eventually lower rates for homeowners and businesses.

“I inherited a sewer district authority that’s $28 million out of balance. Nowhere else in New York state do not-for-profits get a free ride,” County Executive Ed Mangano said.

Even in the best of times, suburban communities may not enjoy the tax-exempt status of non-profit organizations. But with less favorable economic times, it is likely more communities will be looking for new revenue sources.

Although it sounds like this discussion may have just become another political issue (one party versus the other in Nassau County), these sorts of discussions will be taking place in many more suburbs across the country.

American life can’t be too bad if people can spend lots of time tracking down a fast food sandwich

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Times are dire, bad, fraught with difficulty. This is now what we have heard, and many have experienced, for months.

But it struck me today that American life is not that terrible if there are some people who are very devoted to tracking down McDonald’s McRib sandwich. It is this sort of quotidian hobby or interest that is only possible in societies where people have extra time and money on their hands.

So what exactly is going on here? Couple this story with the fervor that Chick-fil-A has inspired in the Chicago region with the opening of new stores and it is clear that many Americans love their fast food.

Illustration of suburban revenue troubles: Brookfield vs. the Brookfield Zoo

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A constant concern of many suburbs is the tax base: how can the community bring in businesses and land uses that will bring in more tax dollars? To do this, some communities may be willing to offer tax breaks to certain land uses. But with the recent economic crisis, some communities have had to rethink their approach.

The source of contention between the suburb of Brookfield and the Brookfield Zoo is how much the water is going to cost for the zoo. For a long time, the community has given the Zoo a break on water, presumably because the Zoo brings in revenue for the municipality. But now with a tighter budget, Brookfield says it needs to charge the zoo a higher rate and perhaps also add an amusement tax to zoo tickets. In cases like these, some businesses might threaten to move – though this may be particularly complicated for a large zoo.

When times are good, municipalities and businesses don’t have as much trouble working out deals. But when there is less money to go around, issues like these become more common.