This is an exerpt from a new report published by Civil Service College of Singapore, authored by Joel Kotkin with contributions from Wendell Cox, Ali Modarres, and Aaron M. Renn.
Download the full report.
As the world urbanises and more megacities are created, some smaller, focused urban regions are becoming truly critical global hubs, unlike most larger cities, which are simply tied to their national economies. In a new ranking of global cities, CSC Senior Visiting Fellow Joel Kotkin argues that the truly global city is one that is uniquely situated to navigate the global transition to an information-based economy since the influence of industries such as media, culture or technology are the ones that will determine economic power in future. Kotkin also examines the fundamental challenge faced by cities as they achieve global status: the need to balance two identities, a global and a local one. "The world beckons, and must be accommodated, but a city must be more than a fancy theme park, or a collection of elite headquarters and expensive residential towers", he asserts.
Much has been written about the supposed preference of millennials to live in hip urban settings where cars are not necessary. Surveys of best cities for millennials invariably feature places like New York, San Francisco, Chicago and Boston, cities that often are also favorites of the authors.
If California is to change course and again become a place of opportunity, the impetus is likely to come not from the perennially shrinking Republican Party but from working-class and middle-class Democrats.
Southern California faces a crisis of confidence. A region that once imagined itself as a new model of urbanity – what the early 20th century minister and writer Dana Bartlett called “the better city” – is increasingly being told that, to succeed, it must abandon its old model and become something more akin to dense Eastern cities, or to Portland or San Francisco.
This has touched off a “density craze,” in which developers and regulators work overtime to create a future dramatically different from the region’s past. This kind of social engineering appeals to many pundits, planners and developers, but may scare the dickens out of many residents.
Forty years ago, Mexico was a one-party dictatorship under the Partido Revolucionario Institucional, hobbled by slow growth, soaring inequality, endemic corruption and dead politics. California, in contrast, was considered a model American state, with a highly regarded Legislature, relatively clean politics, a competitive political process and a soaring economy.
In the coming election, we will hear much, particularly from progressives, about inequality, poverty and racism. We already can see this in the pages of mainstream media, with increased calls for reparations for African-Americans, legalizing undocumented immigrants and a higher minimum wage.
America, seen either from here or from abroad, doesn’t look so good these days. The country that maintained world peace for decades now “leads by behind,” or not at all. You don’t have to have nostalgia for George W. Bush’s foreign policy to wish for someone in the White House who at least belongs in the same room with the likes of Vladimir Putin. Some wags now suggest that President Barack Obama has exceeded Jimmy Carter in foreign policy incompetence – Carter certainly was more effective in the Middle East.
America’s Opportunity City: Lots of New Jobs and a Low Cost of Living Make Houston a Middle-class Magnet
David Wolff and David Hightower are driving down the partially completed Grand Parkway around Houston. The vast road, when completed, will add a third freeway loop around this booming, 600-square-mile Texas metropolis. Urban aesthetes on the ocean coasts tend to have a low opinion of the flat Texas landscape—and of Houston, in particular, which they see as a little slice of Hades: a hot, humid, and featureless expanse of flood-prone grassland, punctuated only by drab office towers and suburban tract houses.
Ever since the publication this spring of Thomas Piketty’s book “Capital in the 21st Century,” conservatives and much of the business press, such as the Financial Times, have been on a jihad to discredit the author and his findings about increased income inequality in Western societies. Some have even equated growing attacks on inequality with anti-Semitism, with at least one Silicon Valley venture capitalist, Tom Perkins, comparing anti-inequality campaigners to Nazis.
What if they gave a recovery, and the middle class were never invited? Well, that’s an experiment we are running now, and, even with the recent strengthening of the jobs market, it’s not looking very good.
Over the last five years, Wall Street and the investor class have been on a bull run, but the economy has been, at best, torpid for the vast majority of the population. Despite blather about our “democratic capitalism,” stock ownership is increasingly concentrated with the wealthy as the middle class retrenches. The big returns that hedge funds, real estate trusts or venture capitalist receive are simply outside the reach of the vast majority.
The November election will be played out along all the usual social memes – from gay marriage, racism and immigration to the “war against women.” But what may determine the outcome revolves around one key economic issue: energy. This has all come to a boil now as President Obama has backed an Environmental Protection Agency effort to accelerate tougher emissions standards, something that could shutter hundreds of coal-fired power plants and slow fossil fuel development across the country.
When our current President was elected, many progressives saw the dawning of a new epoch, a more egalitarian and more just Age of Obama. Instead we have witnessed the emergence of the Age of Oligarchy.
The outlines of this new epoch are clear in numerous ways. There is the diminished role for small business, greater concentration of financial assets, and a troubling decline in home ownership. On a cultural level, there is a general malaise about the prospect for upward mobility for future generations.
When we think about American finance, the default image is of a pinstriped banker on Wall Street. But increasingly financial services is shifting away from the traditional bastions of money.
In an analysis of recent and longer-term employment trends, we have identified the large cities –those with over 450,000 jobs – that are gaining jobs in financial services, a sector that employs 7.9 million people nationwide. Overwhelmingly, the fastest growth has been in cities not associated with high finance, but largely low-cost Sun Belt cities, which account for seven of the top 10 large metro areas on our list.
The recent political earthquake in Europe has great implications for the United States, both internationally and domestically. The unpopularity of European Union institutions produced record-breaking votes for a motley assortment of anti-establishment parties across the Continent, suggesting it’s time to stop looking across the Atlantic for role models as Europe’s dismal prospects have inspired the lowest levels of political support in several decades.
David Peebles works in a glass tower across from Houston’s Galleria mall, a cathedral of consumption, but his attention is focused on the city’s highly industrialized ship channel 30 miles away. “Houston is the Chicago of this era,” says Peebles, who runs the Texas office of Odebrecht, a $45 billion engineering firm based in Brazil. “In the sixties you had to go to Chicago, Cleveland and Detroit. Now Houston is the place for new industry.”