Manufacturing may no longer drive the U.S. economy, but industrial growth remains a powerful force in many regions of the country. Industrial employment has surged over the past five years, with the sector adding some 855,000 new jobs, a 7.5% expansion.
Several factors are driving this trend, including rising wages in China, the energy boom and a growing need to respond more quickly to local customer demand and the changing marketplace.
Racial and economic inequality may be key issues facing America today, but the steps often pushed by progressives, including minority politicians, seem more likely to exacerbate these divisions than repair them. In a broad arc of policies affecting everything from housing to employment, the agenda being adopted serves to stunt upward mobility, self-sufficiency and property ownership.
This great betrayal has many causes, but perhaps the largest one has been the abandonment of broad-based economic growth traditionally embraced by Democrats. Instead, they have opted for a policy agenda that stresses environmental puritanism and notions of racial redress, financed in large part by the windfall profits of Silicon Valley and California’s highly taxed upper-middle class.
Will Rogers famously stated, “I am not a member of any organized political party. I am a Democrat.” And he was not so far from the truth. The old Democratic Party was a motley collection of selected plutocrats, labor bosses, Southern segregationists, smaller farmers, urban liberals and, as early as the 1930s, racial minorities. It was no doubt a clunky coalition but delivered big time: winning World War II, pushing back the Soviet Union and making it to the moon while aiding tens of millions of Americans to ascend into the middle class.
In our modern economy, the biggest wellspring of new jobs isn’t the information sector, as hype might lead some to think, but the somewhat nebulous category of business services. Over the past decade, business services has emerged as easily the largest high-wage sector in the United States, employing 19.1 million people. These are the white-collar jobs that most people believe offer a ladder into the middle class.
Recent setbacks for social conservative ideals – most particularly on same-sex marriage – have led some to suggest that traditional values are passé. Indeed, some conservatives, in Pat Buchanan’s phrase, are in “a long retreat,” deserted by mainstream corporate America sporting rainbow logos. Some social conservatives are so despondent that they speak about retreating from the public space and into their homes and churches, rediscovering “the monastic temperament” prevalent during the Dark Ages.
The next culture war will not be about issues like gay marriage or abortion, but about something more fundamental: how Americans choose to live. In the crosshairs now will not be just recalcitrant Christians or crazed billionaire racists, but the vast majority of Americans who either live in suburban-style housing or aspire to do so in the future. Roughly four in five home buyers prefer a single-family home, but much of the political class increasingly wants them to live differently.
China has hacked our government, devastated or severely challenged our industries and enjoyed one of the greatest wealth transfers in history – from our households to its. China also benefits from by far the largest trade surplus with the United States and also owns 11 percent of our national debt.
Some future historian, searching for the origins of a second Middle Ages, might fix on the summer of 2015 as its starting point. Here occurred the marriage of seemingly irreconcilable world views—that of the Catholic Church and official science—into one new green faith.
Recent revelations about the firing of American tech workers and their replacement by temporary visa holders reveal, in the starkest way, why many Americans are wary of the impact of untrammeled immigration. Workers in American companies have been removed from their jobs not because they could not perform them, but because their replacements, largely from India, are simply cheaper and, likely, more malleable.
Every year, I, along with Pepperdine’s Michael Shires, have what has become the often-dispiriting job – for a 40-year California resident – of evaluating the nation’s metropolitan regions in terms of both short-term and midterm job growth. Yet, this year, the results for our state’s metros are somewhat improved, as California’s post-recession job-growth rate now equals, and could surpass, the still-somewhat insipid national average.
After years of subpar growth, California is reaping the advantages of a fortuitous economic alignment of ultralow interest rates, high stock values and growing investments in high-end residential real estate. Vast sums are pouring into the state for new tech ventures, speculative hotel and residential developments.
We are supposed to be moving rapidly into the “information era,” but the future, as science fiction author William Gibson suggested, is not “evenly distributed.” For most of the U.S., the boomlet in software, Internet publishing, search and other “disruptive” cyber companies has hardly been a windfall in terms of employment.
There’s more than a bit of cognitive dissonance in the merger of Democrats with plutocracy – rule by the wealthy. After all, the party’s brand is supposed to be “party of the people.” For Democrats, the allure of corporate cash – in campaign contributions and, later on, in of corporate patronage – may be overwhelming, but it does pose a threat to the party’s positioning.
To be sure, the Republicans are not exactly a primary vehicle for social democracy, but at least they generally don’t generally sell themselves this way. This differs from the almost comic attempt of Hillary Clinton to run as the candidate of the abandoned middle class.
A look at job growth in America’s small and medium-size cities provides a very different, perhaps more intimate portrait of the ground-level economy across a wider swathe of the country than our survey last week of The Best Big Cities For Jobs. It takes us to many states that lack large cities, particularly in the Midwest and South.
Maybe it’s that reporters don’t like malls. After all they tend to be young, highly urban, single, and highly educated, not the key demographic at your local Macy’s, much less H&M.
But for years now, the conventional wisdom in the media is that the mall—particularly in the suburbs—is doomed. Here a typical sample from The Guardian: “Once-proud visions of suburban utopia are left to rot as online shopping and the resurgence of city centers make malls increasingly irrelevant to young people.”
Since the U.S. economy imploded in 2008, there’s been a steady shift in leadership in job growth among our major metropolitan areas. In the earliest years, the cities that did the best were those on the East Coast that hosted the two prime beneficiaries of Washington’s resuscitation efforts, the financial industry and the federal bureaucracy. Then the baton was passed to metro areas riding the boom in the energy sector, which, if not totally dead in its tracks, is clearly weaker.