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Unemployment: Getting Better for Some

It's terrific to see unemployment rate dip below the 10 percent mark. But, unemployment in the Great Reset remains quite a bit deeper than in previous ones, as the NYT's Catherine Rampell shows. The overall U-6 measure of unemployment - which includes discouraged workers - stands at 16.5 percent.

A close look at the numbers finds some groups are doing far better than others. Men continue to fare substantially worse than women:  The unemployment rate for adult men remains 10 percent, while the rate for women is now 7.9 percent.

The effects of the economic crisis continue to be extremely uneven. Unemployment remains much higher for the less educated. The unemployment rate for workers without a high school degree, 15.2 percent, is double that of those with a high school diploma, 10.1 percent, and three times higher than for college-educated workers, 15.2 percent.

Unemployment also varies substantially by industry. The unemployment rate for blue-collar workers remains quite high. The unemployment rate for manufacturing workers stands at 13 percent while construction workers face a staggering 24.7 rate. The rate for professional services workers has grown to 11.1 percent, but financial professionals have unemployment of 6.6 percent.  The rate for educational professionals stands at  5.5 percent, and that for government employees is 4.3 percent.

Sat Feb 6th 2010 at 1:50pm EST
MoneyPaperDolls

Regional Unemployment Continues to Rise

Unemployment continues to rise in U.S. metro regions, according to the December figures released by the U.S. Bureau of Labor Statistics. "Unemployment rates were higher in December than a year earlier in 371 of the 372 metropolitan areas and lower in one area," according to the report. The Detroit metro continued to post the highest level of unemployment - 14.9 percent  But Las Vegas saw the largest increase in their jobless rate, which grew by 4.4 percentage points over the past year. The number of metros with unemployment rates of more than 10 percent more than doubled from 42 in December 2008 to 138 in December 2009. Of regions with more than one million people, Oklahoma City and Greater Washington, D.C. posted the lowest unemployment rates - 6.0 and 6.2 percent, respectively.

The full list of unemployment by metro region is here.

Thu Feb 4th 2010 at 2:55pm EST
twogchubbybluebird_sm

Quitting on Twitter or #madashell.notgonnatakeitanymore

Jonathan Schwartz, the CEO of Sun Microsystems, announced his resignation via Twitter, deploying haiku to boot. His message:

Financial crisis/Stalled too many customers/CEO no more

This illustrated his frustration surrounding the acquisition by Oracle.

Normally, I recommend (especially to young people) to resist the urge to be cheeky and keep it to the point and be professional. This article suggests that Conan O’Brien should have been more diplomatic, although his détente final words may have cleared things up.

What was your most creative quitting story? What quitting fantasies have you had?

Thu Feb 4th 2010 at 2:38pm EST
WaterBlueIceFoodDrink

Detroit's Ice House

Check out this CNN video of Detroit's terrific Ice House project. The two men managing the "collaboration with Mother Nature" are dousing the state-donated house with water to make a statement about the frozen housing crisis. It's their hope that this installation art piece will reveal a solution and show that there are plenty of uses for abandoned homes, whether they're used for recycled materials or turned into new homes.

Check out the Ice House website.

Wed Feb 3rd 2010 at 3:18pm EST
HeartMouseWorkOfficeTechnologyDating

Cupid On Campus

Seems appropriate with Valentine’s Day around the corner to ask: How many of you personally have or know people who have met their spouse, partner, wife, husband, significant other in college? This is certainly one way Mighty EDU transforms lives.

According to the National Marriage Survey, college is still the place where 25 percent of men and 15 percent of women meet their first spouse, a steep decline from 50 years ago but still impressive. And, these stats omit second marriages, faculty hook-ups, admin nuptials, and, not to forget, the occasional faculty and student knot-tying. When I look at my own closest friends, roughly 42 percent of them were connected via a primary (e.g. same college) or secondary (e.g. study abroad program) college experience.

Hmm, maybe it is time for single folk to forgo Match.com and enroll in a class to learn and be struck by Cupid’s arrow as they stroll across campus this lovely spring.

Wed Feb 3rd 2010 at 12:01pm EST
RecycleMoneyEconomy

Inequality in the Great Reset

How do economic crises affect inequality? In the past, inequality increased prior to economic crises, only to moderate during and after crisis periods. In the present crisis, many expected inequality to decline. Others, however, note that with job loss in the millions and unemployment above 10 percent, while investment bankers continue to rake in big bonuses inequality is on the rise.

A new study by researchers at the Minneapolis Fed and New York University tracks inequality in the U.S. since 1970 (via Mark Thoma). I find that while income inequality has increased during the crisis, consumption inequality has declined.

Recent evidence shows how the distribution of resources changes in recessions in complex ways.

  • The bottom of the earnings distribution falls off substantially relative to the median, causing earnings inequality to increase in recessions.
  • This increase is substantially mitigated by government and private transfers. This mitigating effect, together with the fact that households can use borrowing and lending to smooth income declines, causes the consumption distribution to typically move very little during recessions.
  • The current recession appears somewhat unusual. So far, consumption inequality has declined sharply, perhaps because the consumption-rich have been disproportionately hurt by declining asset prices.
  • Wed Feb 3rd 2010 at 10:15am EST
    GlobalComputersNetwork

    Follow Richard Florida on Facebook

    Launched today - the new Richard Florida fan page on Facebook!

    Come join our growing community and get all the updates about Richard, his books, events, blog posts, and more in one of your favorite social networking locations.

    Wed Feb 3rd 2010 at 9:33am EST
    EconomyMoney

    Entrepreneurship and the Economy

    As one looks around the economic landscape I am struck by the devastation. One number stands out above all others. One in five males between the ages of 25 and 55 is out of work! That is a staggering number. The numbers are not going back to anything "normal" anytime soon according to the IMF. Financial crises followed by recessions do not return to normal levels of employment for over a decade. Why you might ask? The answer I guess is that the levels of debt need to be worked down. Everyone owes everyone money and none pay anyone. Second, the recession destroys real capital. In this situation it was housing. It will take years to work off the excesses of the housing crisis.

    So what does entrepreneurship have to do with the recession? If we take what we know today, entrepreneurs and innovation play a vital role in the economy. But can they help us in the great recession? In other words, what policy should we be pursuing to move the unemployment rate below 10 percent and back into the neighborhood of 5 percent? We know that new firms are important. They create most of the net jobs.  However, only a small percent, perhaps 4 percent, create almost all of the jobs in any given four-year period. And this seems to hold up in different times, different countries, and different industries.

    So how do we forge a policy? Two stories are told out there. First we know that age and size are important variables. And we know that age appears to be more important than size. In other words, we should target firms based on age not size. The two stories out there are one by Zoltan Acs and the other by Carl Schramm. In a highly influential study, Acs found that the average high impact firm was about 20 years old and came in all sizes, small, medium, and large. Schramm, on the other hand, using a Census Bureau study, found that firms less than five years old created almost all of the jobs independent of size.  They both cannot be right.

    However, if we are interested in short-term policy solutions and not real economic growth, we should help stimulate solo self-employed. They have a start-up rate that is three times as large as firms with employees. They start easily but also go out of business quickly. So an effective policy would be to make it easier for them to stay in business longer.

    A simple policy would be to cut the self-employment tax, not over 15 percent of all new solo self-employed firms to zero for three years. If they hired any employees we should cut the employer share 7.5 percent for three years also. This would greatly increase the survival rate for these new firms. Of course this is not a long-term solution because many of these firm will contribute very little to productivity, economies of scale, or wealth creation. But they will pull down the unemployment rate.

    The impact on the deficit would not be great since many of these people would not have survived to pay payroll taxes anyway. Once the economy picks up the issue of long-run growth can be addressed. But in the short run, let's get people working.

    Tue Feb 2nd 2010 at 8:38pm EST
    TrainTransportationUrbanTravel

    Pollyanna Rides the Rails

    Last week President Obama announced that he would provide $8 billion of funds to study and plan high-speed rail systems in the U.S. My state of California received $2 billion to study a high-speed train link between San Francisco and Los Angeles. This is to go with a $10 billion bond issue that state voters approved for feasibility studies and right-of-way acquisition. As an aside, California voters have been approving bond issues for anything and everything for the last two decades, but never considering how the bonds will be paid. Now the state is bankrupt and we are studying and planning a high-speed rail system, while squeezing our universities, releasing criminals (not such a bad idea for those convicted of victimless crimes), chopping existing mass transit, and firing teachers. Go figure.

    But this is not what worries me the most. We are studying a high-speed intercity rail system, when all over California and the nation, while dramatically increasing fares and cutting back mass transit service. The Bay Area BART is laying off workers, increasing fares, and will probably have to cut services. The Sacramento area transit system is laying off workers, cutting service, and raising fares. Atlanta’s MARTA is raising fares, curtailing service, and laying off workers. The New York MTA is increasing commuter fares and cutting service. You get the picture.

    The bullet trains in Japan are so convenient because of the excellent mass transit when you get to your destination. Mass transit is what makes the northeast corridor trains work.

    Does it make sense to pay to plan and study high-speed train lines while the existing energy saver and public amenity that makes cities more livable -- mass transit -- is being dismantled? Why not support and improve existing mass transit first? How are we going to have great cities without a functional mass transit system?

    Sun Jan 31st 2010 at 2:10pm EST
    ComputerLaptopTechnologyOfficeHand

    Do Kids Sit Still Without a Screen?

    Last weekend, we went to a benefit for Mercy Corps relief work in Haiti in a small theater. It was an eclectic all-star cast - Thomas Lauderdale and China Forbes from Pink Martini, singer/actress Storm Large, the hip hop/rapper Cool Nutz, jazz artists Janice Scroggins and Linda Hornbuckle, and others. It was impromptu, put together in six days but sold out. We sat toward the back and when I looked out what I saw were grey and bald heads, the average age was probably 50+. But in other venues, all of these performers draw big young crowds. Tickets were $30, so price wasn’t a major barrier.

    It made me remember that the previous weekend we went to a staged reading of a play by a small, semi-experimental theater company and again the audience was geezers (me included).

    So I’m wondering, is there an age cultural divide in venues? It doesn’t surprise me to see mostly older folks at classical events, but these are the kind of things I went to in my 20's. Richard wrote in Rise about the creative class’ move toward experiential entertainment. If the benefit had been in a dance venue would the crowd have been different? And if there were a DVD made of the play or it were posted on YouTube, would it get a younger audience?

    I’m curious what you do when you go out, or for that matter do at home for entertainment with your computer. Do younger folks need to either experience things only virtually or viscerally? Is theater seating going the way of the print media? What does this mean for American culture?

    Thu Jan 28th 2010 at 2:37pm EST
    twogtwitterbluebird_sm

    Who's Following @Richard_Florida?

    The one and only Yoko Ono (@yokoono) is now following Richard on Twitter.

    Become privy to Richard's thought-provoking Tweets today: @Richard_Florida.

    Who are your favorite folks to follow on Twitter?

    Mon Jan 25th 2010 at 10:34am EST
    BalloonAirRuralTravelAbstract

    Pollyanna Revisited

    On July 13, 2009, I wrote this comment Pollyanna Has All the Friends.... Here we are exactly six months later and my premonitions have been born out. The Senatorial election in Massachusetts was an earthquake - make no mistake about it - and unless there is change there will be many more. Massachusetts was not just tea-baggers or the health care debacle -- the level of anger on Main Street is rising. This can be seen in the Bernanke renomination fight, which, though likely to be approved, is probably the last stand for what I believe is a Chicago School of Economics-driven flawed analysis of the current crisis. The anger will dramatically grow if, as I expect, the market takes another terrible fall during 2010.

    The Obama victory was as fundamental as that of Franklin Roosevelt. Roosevelt’s victory heralded the appearance of the mass production industrial working class on the political scene. He galvanized their demands into the New Deal. The result, after World War II, was U.S. global leadership. I suggest everyone read Roosevelt’s first Inaugural Address. It is a statement of vision, leadership, commitment to change, and a recognition that a new order was in birth.

    Many of us, me skeptically included, saw Obama as the harbinger of a different sector of the U.S. economy and polity, what Rich has called a “creative class,” moving into power. We all know what has happened since. Essentially, Obama felt it necessary to succor the old order, while not clearing the way for a new sensibility.

    In my estimation, President Obama has about one month to dramatically change course or I fear his presidency will, for all intents and purposes, be finished and the nation will have three years of dangerous drift, while a hurricane rages around us. These are the things I think he must do now:

  • Military spending must be cut massively and the two wars in Central Asia must be rapidly wound down. Iraq appears quiet, but Afghanistan is ramping up and will be far more costly than Iraq ever was. As an example, it costs $400 to deliver a gallon of gasoline to our troops there, and $1 million per year for every soldier there! This is unsustainable.
  • Money must be withdrawn from bailouts, maintaining unsustainably low interest rates, and subsidizing mortgages in a vain effort to keep home prices high.
  • The funds saved must be redirected toward jobs programs of all sorts, a Greentech roll-out, the arts, infrastructure renewal, education, and research. Most of these are low-cost, high labor-intensity.
  • Do you think my July premonitions are that far off where we are today? What is it that will be required to create a transition to a new order?

    Sat Jan 23rd 2010 at 9:18pm EST
    computerscreen

    SAS and Twitter Today

    Check out today's Tweets focusing on SAS, one of the largest software companies in the world:

  • SAS Institute tops list of best places to work
  • Managing for Creativity, me and SAS CEO Jim Goodnight on SAS model in HBR
  • Video of Goodnight and me on SAS model
  • Not following Richard on Twitter? Join the club: @Richard_Florida

    Fri Jan 22nd 2010 at 9:23pm EST
    magic city

    World's Smartest Cities

    This week, Forbes and Joel Kotkin released a  list of the "world's smartest cities."

    "In today's parlance a "smart" city often refers to a place with a "green" sustainable agenda. Yet this narrow definition of intelligence ignores many other factors--notably upward mobility and economic progress--that have characterized successful cities in the past.

    The green-only litmus test dictates cities should emulate either places with less-than-dynamic economies, like Portland, Ore., or Honolulu, or one of the rather homogeneous and staid Scandinavian capitals. In contrast, I have determined my "smartest" cities not only by looking at infrastructure and livability, but also economic fundamentals."

    The list included:

    1. Singapore

    2. Hong Kong

    3. Curitiba, Brazil

    4. Monterrey, Mexico

    5. Amsterdam

    6. Seattle, Washington

    7. Houston, Texas

    8. Charleston, South Carolina

    9. Huntsville, Alabama

    10. Calgary, Alberta

    Are these really the "smartest cities?"

    Fri Jan 22nd 2010 at 8:31pm EST
    lightbulb

    Thinking Big: How the Creative Class Is Changing Business

    Richard recently appeared on Big Think to share his ideas on how the Creative Class is impacting the way businesses think.

    "Now more than ever, companies need unconventional thinking to work within the new rules set by the economic recession. Richard Florida has persuasively demonstrated how artists, scientists, engineers, writers, musicians and more can revitalize an entire city from urban decay. With today’s companies dealing with a deep recession, what can members of the Creative Class do for businesses?"

    Check out the interview here.

    Fri Jan 22nd 2010 at 8:04pm EST
    Compass

    Keynote at the MMA in Boston

    Richard Florida is in Boston today at the Massachusetts Municipal Association, serving as the keynote speaker for their annual meeting. From their website:

    The MMA Annual Meeting and Trade Show is the largest regular gathering of Massachusetts local government officials. The two-day event features educational workshops, nationally recognized speakers, awards programs, a large trade show, and an opportunity to network with municipal officials from across the state.

    The MMA’s Annual Meeting is your best single opportunity to:

    • Learn about solutions to problems facing your community

    • Meet people who can assist you with resources and ideas

    • Learn about valuable products and services for cities and towns

    • Attend programs that will strengthen your ability to lead and serve your community

    What opportunities does your community offer to engage with other residents and incite change?

    Fri Jan 22nd 2010 at 11:14am EST
    WaterBlueIceFoodDrink

    Detroit's Ice House

    Check out this CNN video of Detroit's terrific Ice House project. The two men managing the "collaboration with Mother Nature" are dousing the state-donated house with water to make a statement about the frozen housing crisis. It's their hope that this installation art piece will reveal a solution and show that there are plenty of uses for abandoned homes, whether they're used for recycled materials or turned into new homes.

    Check out the Ice House website.

    Wed Feb 3rd 2010 at 3:18pm EST
    RecycleMoneyEconomy

    Inequality in the Great Reset

    How do economic crises affect inequality? In the past, inequality increased prior to economic crises, only to moderate during and after crisis periods. In the present crisis, many expected inequality to decline. Others, however, note that with job loss in the millions and unemployment above 10 percent, while investment bankers continue to rake in big bonuses inequality is on the rise.

    A new study by researchers at the Minneapolis Fed and New York University tracks inequality in the U.S. since 1970 (via Mark Thoma). I find that while income inequality has increased during the crisis, consumption inequality has declined.

    Recent evidence shows how the distribution of resources changes in recessions in complex ways.

  • The bottom of the earnings distribution falls off substantially relative to the median, causing earnings inequality to increase in recessions.
  • This increase is substantially mitigated by government and private transfers. This mitigating effect, together with the fact that households can use borrowing and lending to smooth income declines, causes the consumption distribution to typically move very little during recessions.
  • The current recession appears somewhat unusual. So far, consumption inequality has declined sharply, perhaps because the consumption-rich have been disproportionately hurt by declining asset prices.
  • Wed Feb 3rd 2010 at 10:15am EST
    BalloonAirRuralTravelAbstract

    Pollyanna Revisited

    On July 13, 2009, I wrote this comment Pollyanna Has All the Friends.... Here we are exactly six months later and my premonitions have been born out. The Senatorial election in Massachusetts was an earthquake - make no mistake about it - and unless there is change there will be many more. Massachusetts was not just tea-baggers or the health care debacle -- the level of anger on Main Street is rising. This can be seen in the Bernanke renomination fight, which, though likely to be approved, is probably the last stand for what I believe is a Chicago School of Economics-driven flawed analysis of the current crisis. The anger will dramatically grow if, as I expect, the market takes another terrible fall during 2010.

    The Obama victory was as fundamental as that of Franklin Roosevelt. Roosevelt’s victory heralded the appearance of the mass production industrial working class on the political scene. He galvanized their demands into the New Deal. The result, after World War II, was U.S. global leadership. I suggest everyone read Roosevelt’s first Inaugural Address. It is a statement of vision, leadership, commitment to change, and a recognition that a new order was in birth.

    Many of us, me skeptically included, saw Obama as the harbinger of a different sector of the U.S. economy and polity, what Rich has called a “creative class,” moving into power. We all know what has happened since. Essentially, Obama felt it necessary to succor the old order, while not clearing the way for a new sensibility.

    In my estimation, President Obama has about one month to dramatically change course or I fear his presidency will, for all intents and purposes, be finished and the nation will have three years of dangerous drift, while a hurricane rages around us. These are the things I think he must do now:

  • Military spending must be cut massively and the two wars in Central Asia must be rapidly wound down. Iraq appears quiet, but Afghanistan is ramping up and will be far more costly than Iraq ever was. As an example, it costs $400 to deliver a gallon of gasoline to our troops there, and $1 million per year for every soldier there! This is unsustainable.
  • Money must be withdrawn from bailouts, maintaining unsustainably low interest rates, and subsidizing mortgages in a vain effort to keep home prices high.
  • The funds saved must be redirected toward jobs programs of all sorts, a Greentech roll-out, the arts, infrastructure renewal, education, and research. Most of these are low-cost, high labor-intensity.
  • Do you think my July premonitions are that far off where we are today? What is it that will be required to create a transition to a new order?

    Sat Jan 23rd 2010 at 9:18pm EST
    magic city

    World's Smartest Cities

    This week, Forbes and Joel Kotkin released a  list of the "world's smartest cities."

    "In today's parlance a "smart" city often refers to a place with a "green" sustainable agenda. Yet this narrow definition of intelligence ignores many other factors--notably upward mobility and economic progress--that have characterized successful cities in the past.

    The green-only litmus test dictates cities should emulate either places with less-than-dynamic economies, like Portland, Ore., or Honolulu, or one of the rather homogeneous and staid Scandinavian capitals. In contrast, I have determined my "smartest" cities not only by looking at infrastructure and livability, but also economic fundamentals."

    The list included:

    1. Singapore

    2. Hong Kong

    3. Curitiba, Brazil

    4. Monterrey, Mexico

    5. Amsterdam

    6. Seattle, Washington

    7. Houston, Texas

    8. Charleston, South Carolina

    9. Huntsville, Alabama

    10. Calgary, Alberta

    Are these really the "smartest cities?"

    Fri Jan 22nd 2010 at 8:31pm EST
    AbstractColorBowlsFlutesCreative

    Global Entrepreneurship Research Association

    Last week the Global Entrepreneurship Research Association (GERA) had its annual meeting in Santiago, Chile and launched the 2010 Global Entrepreneurship Monitor (GEM) executive report. The annual meeting was held in a developing country for the first time. The meeting is a mixture of media events, planning meetings, and strategic decision-making. In addition, social events make this a welcome activity.

    The 2010 GEM executive report, in addition to reporting on the state of entrepreneurship in the world, had sections on the economic crisis and social entrepreneurship. The main finding was that entrepreneurial activity had declined in the developed countries but not in the developing countries. In other words, do not look to Europe to lead the world in the future. As a founder of the Hungarian team, the so-called transition countries are not going to lead either. The labor force of Europe is in decline and, therefore, Europe and Japan are in no position to provide entrepreneurial leadership in the future as they age.

    By the year 2050, most of the labor force in Europe will be aging and the under 40 labor force will be in the developing world according to my colleague Jack Goldstone at George Mason University. In other words, the creative, innovative and entrepreneurial talent will be in Brazil, Chile, India, China, and Indonesia. The developing world will have to provide the economic leadership for the market. While the world will be flat, hot, and crowded, the creative talent will also be in these places. GERA is uniquely positioned to measure and track the progress that the world is making in shifting the creative epicenter from Europe to Asia and South America.

    This seminal meeting of the GERA represents the first step of the association in this transition. After spending the first 10 years of this decade trying to figure out if Denmark is more entrepreneurial than the United States, we are now shifting to measuring the entrepreneurial progress of the developing countries. As Richard Florida said to me a few years ago, the young are the same all over the world. If that is the case they will surely be the leaders in the future.

    Wed Jan 20th 2010 at 10:05pm EST
    CirclesAbstract

    Opening Up the Creative Class

    So last Wednesday I was invited to York University to come do a little guest lecture in a class called Creativity and Cities in Urban Politics and Planning 4800. Heather McLean, the courses professor, is a PhD candidate and member of the City Institute at York University but I first heard about her in an article entitled "Why Richard Florida's Honeymoon is Over." She teaches a cool course, with a cooler M.O: Subject the creativity discourse that is leading much of contemporary urban policy to some intelligent criticism.

    By looking at an old Wall Street Journal article and two very different conversations that emerged about it here on the Creative Class Exchange - one that is perhaps more celebratory of how the creative class theory is attributed to this situation, and one that I wrote that is perhaps a bit more critical of the role creative class theory might be playing - I tried to impart on them that it's really important that they bring their content to the table when looking at dominant theories, and to sift these theories through that content to see if they pan out.  That content could be their cultural leaning, their ethnicity, age, political leaning, or whatever lens that they are most invested in, but it's important that they understand that they're empowered by that lens to see things that others who aren't as invested as they are don't see.  They should ask questions about what they see. Or moreover, what they don't. Prepping to do that lecture brought me back to when I first met Richard, which is kind of an interesting story about the value of critique and about the mettle of Richard Florida as well I guess.

    So before all of this DJ/bureaucrat business I was a young(er) DJ/student/journalist writing for the Ottawa Xpress. In school I was studying cities, and for the paper I was writing music and reviewing books. Richard Florida was coming to town for the Tulip Festival, and his then new book Who's Your City? had come into the office to be reviewed. I'd just been into a lot of Richard's research journals, and the Elizabeth Currid stuff was just coming out too, so this was an interesting time to be talking. In all of the reading that I had done I really didn't see myself represented in the creative class - either as a Hiphopper, or as a North American Black person. So in our interview I respectfully stepped to him on those issues.

    From my article/review of Who's Your City?:

    "I am a rock-ist," he admits, "and my students have informed me of this, but I'm learning." As it turns out, Florida reveals that one of his future projects will look at the relationship between music and the city, and that he was already taking that opportunity to look at hip-hop culture...

    and then on race...

    How is the movement of the creative class affecting these [racial] communities? "Probably the reason I don't write about it [race] is that when I wrote about gay issues, I had a gay collaborator. So I felt, as a straight person, that I could then work on gay issues. It's probably a part of my age, I'm very sensitive when trying to weigh in on those issues."

    And while I'm the first to recognize that this isn't him leaping to engage that problematic, you ask him a direct question, you get a direct answer. At the end of the interview we kept talking about where I saw room for engagement within his theory, and eventually we started doing this thing that you're reading right now.

    Recently there has been a lot of good critique of the Creative Class and Creative City theories. Here in Ottawa at Carleton, Sarah Brouillette  is studying the Commodification of Creativity. Profs like Heather and groups like the the Creative Class Struggle are keeping a critical voice in the discourse.  And as much as there are things that I think it would be interesting to see Richard address, one thing I can say about him is that he's always willing to host me to address those things, and likewise with other critics. A good example is Ian David Moss' incredibly fine grained and detailed deconstruction of the creative class over at Createquity.com, and Richard's response to that criticism. Or while I was in Toronto visiting the MPI a few months ago I met Philipp Oehmke who had just spent time doing the interview that leads the article he wrote about the Hamburg squatters in Das Spiegel which captures the nuance of the situation really well.

    In this discourse the traditional skirmish lines seem to be skewed. All of the ire from the left seem to evaporate into a vacuum of hugs from what we thought was the right. In Hamburg the artists occupy, and the city sends talkers and crews to make sure the building is safe. In my interview, I ask this guy tough questions about the exclusion of race and Hiphop from his ideas and he invites me to answer them myself on his site. Coming from the "Fight the Power" generation, this is certainly not what I expected when challenging a dominant ideological discourse. Sometimes I don't know what the hell is going on myself. All I can say is that, for now at least, it seems to be as broad a conversation as you want to have. Yes there are still barriers but, surprisingly, listening seems to be an emerging trend. I think people are still correct to question the root of that  - why are people listening? - but in my opinion, it's more important that people like those students are taking the time to grow and use their critical skills to make this discourse broad enough that their content and concerns can either find their place within this discourse or expose where improvement of it is necessary. That's a creative class if I've ever seen one.

    Music.

    Wed Jan 20th 2010 at 12:35pm EST
    Red on top

    Where Is Your Reset?

    I was talking to a 60-year-old, retired entrepreneur at a party the other night. Successful guy, very sharp. I asked him what he thinks is next for Florida and he said he did not have much hope for Florida, mostly due to lack of visionary leadership. Then he said something that really struck me. He suggested that Florida is on a course to reset to its old state of being “cheap, sunny, and dumb.”

    That really struck me because while we are all talking about the great reset that is going on, I had not thought to ask the question, "What does Florida reset to?” And he may very well be right. At the state level, we are relaxing the rules for developers  to encourage even more sprawl to try to kick-start our construction industry again. We are actually lowering impact fees in places. We are lowering protections on the environment. This seems like a reset towards “cheap, sunny, and dumb.” There are powerful forces and attitudes that could very well push Florida back into this reset mode. And that is pretty scary.

    While we all generally agree that this reset is needed and welcomed in some cases, we should be careful that we don’t reset back to a point so far back that we actually lose too much of our hard won progress. We all have to ask ourselves and our leadership what the plan and vision is for this reset. Each community is facing this and we act as if the reset is just something that will happen. That is not the case, yet I hear far too little  debate as to how we actively shape the reset.

    Tue Dec 15th 2009 at 8:00am EST
    AbstractCreativeUrbanRuralGraffiti

    Congrats to a Beautiful City

    A massive congratulatory shout out and thank you is due to Devon Ostrom and the Beautiful City Alliance on behalf of the city of Toronto. With little but an imperative to act, a willingness to collaborate, and the long-suffering of an ascetic, this determined group of young people were able to establish some cultural sustainability within the city by successfully petitioning council for a new tax on billboards, with a percentage of the monies generated going to a fund for city beautification through local arts. The billboard tax passed a day or so ago, at $10.4 million in revenue annually along with the new bylaw! But don't take it from me.

    From Beautifulcity.ca:

    This massive step forward means that thousands of arts projects will eventually be funded and that many of the problems associated with excessive and illegal billboard signage are finally being addressed... It needed to be done this way to get it through Council at the amount necessary to compensate Torontonians properly for use of public space -- and not have a bunch of Councillor's personal projects and agendas eat away at the allotment. To be short, it was the best way to get a clean vote.

    While some councilors with their eyes on the corporate dollar are non-plussed right now, I can't imagine that this is really so bad for them. Canadian cities have a very limited set of tax-tools that they can use to generate income and a disproportionate amount of it comes from property tax. Moving in the direction of diversification in this way should be welcome, even if it feels pyrrhic from their perspective. Especially with all of the public buy-in. Not to mention the overwhelming media support. If you have some time, definitely read up on this initiative. It was a very, very long and tough battle that tested organization, commitment, and resolve but this alliance of artists and supporters got it done.

    I had actually been asked to depute on behalf of the alliance before the Toronto city council, but because things were constantly getting pushed back it wasn't possible. While I won't break out the full deputation here, I'll riff on what I wrote briefly to reflect upon the victory.

    So Mississauga, where my parents eventually moved to, is west of Toronto. This means to come into the city there were two ways to do it. Either by car taking the Gardiner Expressway, or by public transit - the bus-to-subway mission. Both ways gave you very different entries into the city and I loved them both.

    When you're flying down the Gardiner, just as you hit the curve by Ontario Place, there's this straightaway where the city just opens up, and it's pretty breathtaking. One of the things that can be seen is an impressive stretch of billboards on the left. I always liked reading the advice that would come across the Inglis billboard or seeing the new 3-D ones that the airlines would sometimes mount. I had no idea how or when they changed them, and that was cool to me. But then coming in by the subway there were other things to see, particularly the wall in between Keele and Dundas West stations. It was and still is one of the most famed graffiti spots in the city and a place where I saw some of the most iconic images of my young life. That space between those two stations was endearing me to the city every time I'd pass it by. The idea that there were people out there making the city more beautiful of their own volition made it seem more alive and vibrant to me.

    This initiative is a way to bring those two experiences of very different art into a mutually supportive relationship, and there's something about that that's really cool.

    Now, toasting to success, let's take a look around this beautiful city with the homie Drake:

    httpv://www.youtube.com/w...

    Thu Dec 10th 2009 at 3:14am EST
    GreenEnvironmentPlugPlantOffice

    What Copenhagen Tells Us About Workplace Trends

    This week, thousands have flown across oceans or traversed continents to be in Copenhagen for the UN Climate Change Conference.  There, politicians, scientists, rock stars, journalists, and academics will discuss reducing the carbon dioxide and monoxide humans are spewing into the atmosphere.

    It's intriguing to me that thousands of people, all theoretically committed to reducing their own carbon footprints, see a reason to be in Copenhagen, rather than listening in from home via technology.

    The actual scheduled events, speeches, etc. can all be viewed at home. A few bloggers and writers on site could provide additional context. Yet, thousands had to go for themselves.

    Two key reasons why they likely traveled reveals some workplace trends for the 21st century:

    1. Making human connections in today's global economy trumps carbon concerns.

    A main reason why so many are in Copenhagen this week is to network -- to meet other world leaders, scientists, activists, journalists. Sharing ideas, comparing notes could result in new ideas and innovations going forward. Moreover, making new friends and allies never hurts. Finally, even knowing one's enemies better can be worth the trip.

    Lesson for workplace trends: Even the most ecologically committed will likely commute to the office regularly (even if they telecommute some days), as well as travel to business and client meetings. They'll do this not for the formal agenda, but for the informal spin-offs from unexpected encounters and conversations.

    2.  Being seen at the important meetings is crucial to many people's personal "brands." One reason leaders like U.S. President Obama and Canadian PM Harper are going is because a significant number of voters at home are concerned that their country's government is not doing enough to help the environment. Other aspiring green leaders would not be considered "players" if they were not there, mingling, networking, and being seen.

    Lesson for workplace trends: Image is important. And again, appears to trump carbon concerns. (I assume some at the climate change conference will "green wash" their trips by purchasing "offsets" involving planting trees in Africa -- but this is not the same as not flying or driving in the first place.)

    There are likely additional lessons, but those two stand out for me.

    Your thoughts?

    Tue Dec 8th 2009 at 9:21am EST
    BirdHouses

    Learning from Canada

    The differences between the U.S. and Canadian housing markets astound me on a day-to-day basis. In my neighborhood in Toronto, housing prices are up and homes sell in a few days, some with multiple bids. In Detroit, where we visited for Thanksgiving, you can't sell - or in some cases, even give - houses away. Visiting Miami for Art Basel, the numbers of houses and condos on the market are staggering - stunning, brand new towers remain virtually empty.

    The Cleveland Fed reports on the key differences between the U.S. and Canadian markets (pointer via Marginal Revolution).

    Despite their many points of similarity, housing markets in the United States and Canada have fared quite differently since the onset of the financial crisis. Unlike the U.S., Canada has not experienced a dramatic increase in mortgage defaults, nor has any Canadian bank required a government bailout. As a result, observers such as The Economist have pointed to Canada as “a country that got things right.” ...

    The Canada and U.S. housing market comparison suggests that relaxed lending standards likely played a critical role in the U.S. housing bust. Monetary policy was very similar in both countries from 2000 to 2008, but housing prices rose much faster in the U.S. than in Canada. This suggests that some other factor both drove the more rapid appreciation in U.S. prices and set the stage for the housing bust. A likely candidate is cross-country differences in the structure and regulation of subprime lending markets ...

    But while subprime lending also increased in Canada, the subprime market remains much smaller than in the U.S. The most cited estimate is that subprime lenders had a market share of roughly 5 percent in 2006—compared to 22 percent in the U.S. (Mortgage Architects, 2007). Moreover, the Canadian subprime market never expanded significantly into newer products, such as interest-only or negative-amortization mortgages, whose popularity grew rapidly in the U.S. from 2003 to 2006. Instead, the Canadian subprime market mainly offered products popularized in the U.S. during the 1990s, such as longer amortization periods for loans (from 25 to 40 years), and mainly targeted near-prime borrowers.

    Securitization has also been less common in Canada than in the United States, with roughly 25 percent of Canadian mortgages securitized in 2007 versus nearly 60 percent in the U.S. The Canadian securitization market has grown rapidly over the past decade, rising from roughly 5 percent of mortgages in 1998 to over 25 percent in 2008  ...

    Perhaps the simplest story is that Canada was “lucky” to be a late adopter of U.S. innovations rather than an innovator in mortgage finance. While the subprime share of the Canadian market was small, it was growing rapidly prior to the onset of the U.S. subprime crisis. In response to the U.S. crisis, some subprime lenders exited the Canadian market due to difficulties in securing funding. In addition, the Canadian government moved in July 2008 to tighten the standards for mortgage insurance required for high LTV loans originated by federally regulated financial institutions. This further limited the ability of Canadian banks to directly offer subprime-type products to borrowers.

    There are also several institutional details that played a role. The Canadian market lacks a counterpart to Freddie Mac and Fannie Mae, both of which played a significant role in the growth of securitization in the U.S. In addition, bank capital regulation in Canada treats off-balance sheet vehicles more strictly than the U.S., and the stricter treatment reduces the incentive for Canadian banks to move mortgage loans to off-balance sheet vehicles. Finally, as noted above, the fact that the government-mandated mortgage insurance for high LTV loans issued by Canadian banks effectively made it impossible for banks to offer certain subprime products. This likely slowed the growth of the subprime market in Canada, as nonbank intermediaries had to organically grow origination networks.

    Thu Dec 3rd 2009 at 10:49am EST
    Crane and sunrise

    The Value of Iconic Architecture

    I recently had the opportunity to visit Milwaukee, WI, for the first time (thank you FUEL Milwaukee!). And visiting cities for the first time, to me, is particularly exciting. Arriving for the first time is a pure and unadulterated experience. First impressions matter and how a city presents itself to a first-time visitor is very important. I learned this from my friend Charles Landry.

    [caption id="attachment_13530" align="alignright" width="340" caption="Milwaukee Art Museum"][/caption]

    I arrived via the airport with the typical location outside of city. My host takes the highway toward the city. As we approach the Hoan Bridge, we pass amid the Port of Milwaukee. On both sides, there are mountains of bulk materials and cranes. While not beautiful, there is the appearance of activity and a muscularity that says “we work here.” As we crest the bridge (with its own very strange design element) I am startled because the city presents itself there in panorama. The city in the hills to the left, the waters of Lake Michigan to the right. And to the right, near the lake, your eye is drawn to the white sails of the Santiago Calatrava masterpiece at the Milwaukee Art Museum.  It looks so different and unexpected in the tableau that one cannot help but to stare. Unexpected because this is the Midwest where modern iconic design is not the norm and that is not a shot; I am originally  from the Midwest!  More photos click here.

    While many question the value of “starchitects” and iconic design, I have to say that my impression of Milwaukee was and is shaped in no small part because of that building. It is different and it says something about Milwaukee that no amount of advertising and marketing could equal. It says in a profound way “we are not what you expect” and that Milwaukee is looking to the future and beyond the beer brewery image of its past. The building says it in a visible and demonstrable way that one cannot deny.

    Cities that are arguing over the cost/benefits of such iconic architecture should consider the context in which the new building will occur. In starchitect-rich Singapore, one more Calatrava or Libeskind is just keeping up with the crowd. In cities with a dearth of quality architecture (lots of those) or cities that need to redefine themselves in the 21st century, a new building can be a catalyst for new design and a whole host of other values.

    Tue Dec 1st 2009 at 8:08am EST
    OfficeChairSky

    Four Recessionary Impacts on Knowledge-Economy Workplaces

    About 14 months into the downturn in Canada, about 20 months in the U.S.A., and I've been examining how the recession has affected workplaces and what some longer-term implications may be. Today, I offer a Canadian perspective. I invite you to add your own. Next week I'll try to create an American list, or compare and contrast the recessionary experience in the two countries.

    Four ways the recession may have changed creative class workplaces in Canada

  • The rapid spiral from booming economy to downturn in the fall of 2008 both forced and allowed many companies to re-focus, fast. Many quickly removed employees not seen as having a long-term future with the firm; they also sharpened scrutiny on various business lines or projects, canceling those not deemed likely to be profitable in the short term. In Canada, economists now say the job shedding happened much faster than in past recessions.
  • For some employees, the “golden hand cuffs” came off and they have had an opportunity to move. For staff with bonuses tied to the profits of particular projects or the company generally, a down year can mean you’re not leaving as much money on the table if you quit. The significant increase in self-employed workers is likely a consequence of this. People are going out on their own.
  • The government "may" start to recognize that North American economic future is in knowledge-work, high technology, more than old-style industrial manufacturing. In Toronto there are now more jobs in the Finance Insurance Real Estate sector (FIRE) than manufacturing (324,000 vs 316,000), and by early 2010 there will likely be more in Professional Scientific & Technical Services as well (at 315,000 now).  Already, the financial services industry in Toronto has created an alliance to educate and lobby the government to provide a further boost to this successful sector.
  • As in the U.S., women's jobs have tended to be less affected by the recession, which hit manufacturing and resource industries harder than service and knowledge work. This may be the start of a big shift in how families with children live and work as well.
  • What else?

    Wed Nov 25th 2009 at 10:11am EST
    ForestBluebellsPath

    Beautiful Places

    Here's the abstract for a new paper on said with Charlotta Mellander and Kevin Stolarick.

    Economists have argued that individuals choose locations that maximize their economic position and broad utility. Sociologists have found that social networks and social interactions shape our satisfaction with our communities. Research, across various social science fields, finds that beauty has a significant effect on various economic and social outcomes. Our research uses a large survey sample of individuals across US locations to examine the effects of beauty and aesthetics on community satisfaction. We test for these effects in light of other community-level factors such as economic security and employment opportunities; the supply of public goods; the ability for social exchange, that is to meet people and make friends; artistic and cultural opportunities, and outdoor recreation; as well as individual demographic characteristics such as gender, age, presence of children, length of residence, income and education levels, and housing values. The findings confirm that perceived beauty or aesthetic character of a location has a positive and significant effect on perceived community satisfaction. It is one of the most significant factors alongside economic security, good schools, and the perceived capacity for social interaction. We also find community-level factors to be significantly more important than individual demographic characteristics in explaining community satisfaction.

    The full paper is over at the MPI site, here.

    Sat Nov 7th 2009 at 9:00am EST
    GlobeWorldTravelBusiness

    Global Movers

    New research by the Gallup Organization finds that 700 million people - 16 percent of the world's total population - would like to move to a different country than the one they currently call home.

    The first map below shows the percentages of people in various regions of the world that desire to permanently move to another country.

    The second map shows the places these movers would most like to relocate to.

    Gallup also compiled a very interesting index of potential net migration which compares "the estimated number of adults who would like to move out of a country permanently subtracted from the estimated number who would like to move to it," as a proportion of the total population. Here are the top five and bottom five countries. Interestingly, the United States did not make the top five.

    Wed Nov 4th 2009 at 4:38pm EST
    BikePathRuralUrban

    Greening the City

    Today, we take it for granted the streets are there to move cars, and also to carry buses as well as cyclists, pedestrians, and the occasional skater, scooter-rider, and Segway user. The typical solution is to keep pedestrians on the sidewalk and paint lanes on the street to separate cars from cyclists or create express lanes for buses.

    But maybe there's another approach: Why not consider devoting different streets to different kinds of transportation? And surely cities need more green space and some are actually getting it. Inspired by the High-Line Park, by D.C.'s Rock Creek Park, and Toronto's extensive ravine system, I have been noodling about the possibility of creating linear green belts or what I like to think of as sliver parks through cities. I literally feel this when I walk through Toronto's ravines, or in the past when I cycled through D.C.'s Rock Creek Park. It provides a natural environment in the city and creates green zones for cycling, walking, picnicking, or other activities. But I thought this is far too pie-in-the-sky to actually be implemented or even proposed.

    So I was more than pleasantly surprised to see The New York Times' Nicolai Ouroussoff highlighting just such an approach coming out of  a nine-month design competition for the Bronx's "faded" Grand Concourse.

    A proposal by the New York office of the international design firm EDAW that would create a strip of communal farmland down the middle of the Concourse verges on cliché. But it improves when you keep in mind the grittiness of some of the urban gardens in New York or Berlin and imagine them stretched out along several miles. A new light-rail line would run the length of the boulevard; traffic would be reduced to two lanes in each direction, down from the current six.

    A raucous proposal by the French team Nadau Lavergne Architects would pile more activities on top of existing structures to add density to the neighborhood and create unexpected urban frictions. Schools and cultural institutions would be stacked over apartment complexes, freeing up the street level for commercial use. A graffiti-covered streetcar would run up and down the Concourse, linking it to Manhattan. The Concourse would be packed with trees, transforming it into a linear urban forest.

    Part of what is moving about these proposals is that their approaches have become so familiar. Not long ago the notion of building farmland in the middle of a busy urban roadway would have seemed like madness; today it seems too obvious. So does the idea that segregating urban functions can drain the life from a city.

    Check out the terrific images from the project website, including this slide show. A full gallery of all the submitted projects is here.

    Photo Credit: Wikimedia Commons

    Tue Nov 3rd 2009 at 12:00pm EST
    Interior

    Do Live-Work Spaces Work?

    Do you live and work in the same building?

    In various North American cities in recent years, planners, residents, and others have introduced the notion that there should be more housing built that can also be a person's workplace. Live-Work differs from "mixed use," in which an apartment or condo tower may exist above an office or retail building, however apartment dwellers will not necessarily or even likely work in the commercial space below.

    Under these discussed Live-Work scenarios, a self-employed individual would work from home. The developer of the housing (and/or the municipal zoning) would need to make accommodation for this type of use. I've seen some older buildings converted into artist Live-Work spaces, designed for an artist to have a studio space often at ground level, and their home above it. Newer buildings have often been designed with an office beside the front entrance to the apartment or condo, theoretically allowing someone to receive a client without the client needing to see or enter the rest of the home. However, many units in "live-work" buildings simply have an office off the master bedroom.

    A few weeks ago in a casual chat, Richard raised the question of whether Live-Work capacity would be something that residents of future apartment buildings in downtown Toronto might require. Given shifts that happened during the recession in which tens of thousands of Canadians shifted to self-employment, one could wonder if this accelerated a trend toward more free agents. Live-Work might be a trend in both how we live and how we work.

    All this got me thinking about the attempts to implement Live-Work in Vancouver with some of the new towers (such as The Hudson or Shaw Tower), and how, according to some observers, almost no purchasers bought with the intention of having a home office (they just wanted to live downtown, either because they work in an office building, like the abundant amenities, or both.)

    In the case of artist Live-Work spaces, I read (I believe in Elizabeth Currid's book) that in New York these spaces are typically sub-let to lawyers, accountants, and others who love their locations and trendiness - and who have a lot more money.

    In both cases it may be that typical downtown workers (such as lawyers, accountants, bankers, etc.) end up wanting the live-work condos or artist studios and can afford to pay more for them. But these people work in an office building where they interact with myriad other people all the time.

    Most people I know who "work from home" as private contractors or consultants do so largely to avoid a commute and because they prefer to live in quieter, suburban, or exurban surroundings rather than in a dense urban area (in part they may prefer more distant living because of the ability to afford a larger home for the same money as a condo).

    So, I am wondering whether Live-Work places downtown (or in denser, urban areas) will grow in the future, or diminish - or stay the same, somewhat fringe phenomenon that they are now.

    Do you or any of your friends, clients, or colleagues live and work from a downtown apartment? Or from an urban artist-studio?

    Would you want to?

    Sun Oct 25th 2009 at 2:22pm EDT
    MoneyPaperDolls

    Regional Unemployment Continues to Rise

    Unemployment continues to rise in U.S. metro regions, according to the December figures released by the U.S. Bureau of Labor Statistics. "Unemployment rates were higher in December than a year earlier in 371 of the 372 metropolitan areas and lower in one area," according to the report. The Detroit metro continued to post the highest level of unemployment - 14.9 percent  But Las Vegas saw the largest increase in their jobless rate, which grew by 4.4 percentage points over the past year. The number of metros with unemployment rates of more than 10 percent more than doubled from 42 in December 2008 to 138 in December 2009. Of regions with more than one million people, Oklahoma City and Greater Washington, D.C. posted the lowest unemployment rates - 6.0 and 6.2 percent, respectively.

    The full list of unemployment by metro region is here.

    Thu Feb 4th 2010 at 2:55pm EST
    twogchubbybluebird_sm

    Quitting on Twitter or #madashell.notgonnatakeitanymore

    Jonathan Schwartz, the CEO of Sun Microsystems, announced his resignation via Twitter, deploying haiku to boot. His message:

    Financial crisis/Stalled too many customers/CEO no more

    This illustrated his frustration surrounding the acquisition by Oracle.

    Normally, I recommend (especially to young people) to resist the urge to be cheeky and keep it to the point and be professional. This article suggests that Conan O’Brien should have been more diplomatic, although his détente final words may have cleared things up.

    What was your most creative quitting story? What quitting fantasies have you had?

    Thu Feb 4th 2010 at 2:38pm EST
    HeartMouseWorkOfficeTechnologyDating

    Cupid On Campus

    Seems appropriate with Valentine’s Day around the corner to ask: How many of you personally have or know people who have met their spouse, partner, wife, husband, significant other in college? This is certainly one way Mighty EDU transforms lives.

    According to the National Marriage Survey, college is still the place where 25 percent of men and 15 percent of women meet their first spouse, a steep decline from 50 years ago but still impressive. And, these stats omit second marriages, faculty hook-ups, admin nuptials, and, not to forget, the occasional faculty and student knot-tying. When I look at my own closest friends, roughly 42 percent of them were connected via a primary (e.g. same college) or secondary (e.g. study abroad program) college experience.

    Hmm, maybe it is time for single folk to forgo Match.com and enroll in a class to learn and be struck by Cupid’s arrow as they stroll across campus this lovely spring.

    Wed Feb 3rd 2010 at 12:01pm EST
    GlobalComputersNetwork

    Follow Richard Florida on Facebook

    Launched today - the new Richard Florida fan page on Facebook!

    Come join our growing community and get all the updates about Richard, his books, events, blog posts, and more in one of your favorite social networking locations.

    Wed Feb 3rd 2010 at 9:33am EST
    EconomyMoney

    Entrepreneurship and the Economy

    As one looks around the economic landscape I am struck by the devastation. One number stands out above all others. One in five males between the ages of 25 and 55 is out of work! That is a staggering number. The numbers are not going back to anything "normal" anytime soon according to the IMF. Financial crises followed by recessions do not return to normal levels of employment for over a decade. Why you might ask? The answer I guess is that the levels of debt need to be worked down. Everyone owes everyone money and none pay anyone. Second, the recession destroys real capital. In this situation it was housing. It will take years to work off the excesses of the housing crisis.

    So what does entrepreneurship have to do with the recession? If we take what we know today, entrepreneurs and innovation play a vital role in the economy. But can they help us in the great recession? In other words, what policy should we be pursuing to move the unemployment rate below 10 percent and back into the neighborhood of 5 percent? We know that new firms are important. They create most of the net jobs.  However, only a small percent, perhaps 4 percent, create almost all of the jobs in any given four-year period. And this seems to hold up in different times, different countries, and different industries.

    So how do we forge a policy? Two stories are told out there. First we know that age and size are important variables. And we know that age appears to be more important than size. In other words, we should target firms based on age not size. The two stories out there are one by Zoltan Acs and the other by Carl Schramm. In a highly influential study, Acs found that the average high impact firm was about 20 years old and came in all sizes, small, medium, and large. Schramm, on the other hand, using a Census Bureau study, found that firms less than five years old created almost all of the jobs independent of size.  They both cannot be right.

    However, if we are interested in short-term policy solutions and not real economic growth, we should help stimulate solo self-employed. They have a start-up rate that is three times as large as firms with employees. They start easily but also go out of business quickly. So an effective policy would be to make it easier for them to stay in business longer.

    A simple policy would be to cut the self-employment tax, not over 15 percent of all new solo self-employed firms to zero for three years. If they hired any employees we should cut the employer share 7.5 percent for three years also. This would greatly increase the survival rate for these new firms. Of course this is not a long-term solution because many of these firm will contribute very little to productivity, economies of scale, or wealth creation. But they will pull down the unemployment rate.

    The impact on the deficit would not be great since many of these people would not have survived to pay payroll taxes anyway. Once the economy picks up the issue of long-run growth can be addressed. But in the short run, let's get people working.

    Tue Feb 2nd 2010 at 8:38pm EST
    ComputerLaptopTechnologyOfficeHand

    Do Kids Sit Still Without a Screen?

    Last weekend, we went to a benefit for Mercy Corps relief work in Haiti in a small theater. It was an eclectic all-star cast - Thomas Lauderdale and China Forbes from Pink Martini, singer/actress Storm Large, the hip hop/rapper Cool Nutz, jazz artists Janice Scroggins and Linda Hornbuckle, and others. It was impromptu, put together in six days but sold out. We sat toward the back and when I looked out what I saw were grey and bald heads, the average age was probably 50+. But in other venues, all of these performers draw big young crowds. Tickets were $30, so price wasn’t a major barrier.

    It made me remember that the previous weekend we went to a staged reading of a play by a small, semi-experimental theater company and again the audience was geezers (me included).

    So I’m wondering, is there an age cultural divide in venues? It doesn’t surprise me to see mostly older folks at classical events, but these are the kind of things I went to in my 20's. Richard wrote in Rise about the creative class’ move toward experiential entertainment. If the benefit had been in a dance venue would the crowd have been different? And if there were a DVD made of the play or it were posted on YouTube, would it get a younger audience?

    I’m curious what you do when you go out, or for that matter do at home for entertainment with your computer. Do younger folks need to either experience things only virtually or viscerally? Is theater seating going the way of the print media? What does this mean for American culture?

    Thu Jan 28th 2010 at 2:37pm EST
    twogtwitterbluebird_sm

    Who's Following @Richard_Florida?

    The one and only Yoko Ono (@yokoono) is now following Richard on Twitter.

    Become privy to Richard's thought-provoking Tweets today: @Richard_Florida.

    Who are your favorite folks to follow on Twitter?

    Mon Jan 25th 2010 at 10:34am EST
    lightbulb

    Thinking Big: How the Creative Class Is Changing Business

    Richard recently appeared on Big Think to share his ideas on how the Creative Class is impacting the way businesses think.

    "Now more than ever, companies need unconventional thinking to work within the new rules set by the economic recession. Richard Florida has persuasively demonstrated how artists, scientists, engineers, writers, musicians and more can revitalize an entire city from urban decay. With today’s companies dealing with a deep recession, what can members of the Creative Class do for businesses?"

    Check out the interview here.

    Fri Jan 22nd 2010 at 8:04pm EST
    Compass

    Keynote at the MMA in Boston

    Richard Florida is in Boston today at the Massachusetts Municipal Association, serving as the keynote speaker for their annual meeting. From their website:

    The MMA Annual Meeting and Trade Show is the largest regular gathering of Massachusetts local government officials. The two-day event features educational workshops, nationally recognized speakers, awards programs, a large trade show, and an opportunity to network with municipal officials from across the state.

    The MMA’s Annual Meeting is your best single opportunity to:

    • Learn about solutions to problems facing your community

    • Meet people who can assist you with resources and ideas

    • Learn about valuable products and services for cities and towns

    • Attend programs that will strengthen your ability to lead and serve your community

    What opportunities does your community offer to engage with other residents and incite change?

    Fri Jan 22nd 2010 at 11:14am EST
    FamilyPaperDolls

    Have Women Changed the Workplace?

    Despite the recent The Economist magazine proclamation of pending equality in the workplace, evidence suggests that the situation is more complex.

    Commentators on my recent post here at Creative Class raised several good points:

    Alan Says:  Start celebrating when women earn 50% of total salaries – I expect the champagne will remain on ice for a long time/ probably forever.  Sorry of this seems pessimistic.

    Jana Says:   There’s a big difference between women being 50% of the workforce and women being equally represented in the workforce. My guess is that the majority of the women in the study are in lower level positions than the men. An example being that in one company I worked for was that the majority of the accounting department was female, but these were people inputting invoices, doing reconciliations and payroll. The counterpart was that the head of the department was male.

    Without a better look at the statistics I’m not sure if this is something to celebrate.

    The folks at Economix blog also weighed in:

    Furthermore, the Current Population Survey data show that women are more than twice as likely as men to work part time (24.6 percent in 2008 compared with 11.1 percent in 2008). A measure of equal participation in paid employment should take that difference in hours into account.

    The Economist notes that women remain underrepresented in management positions but registers considerable optimism concerning current trends.

    By contrast, recent research by the sociologists Philip Cohen, Matt Huffman and Stefanie Knauer showed that women’s entry into management positions in the United States slowed significantly in the 1990s.

    The consensus seems to be that The Economist jumped the gun in declaring a female victory.

    In light of this discussion, it's worth re-examining and considering Penelope Trunk's long-held belief that women -- along with younger generations invading the workforce -- have changed the entire workplace game. I agree with Trunk that for many women and men, the new career (or should I say life) goal isn't to maximize salary but instead to maximize life experiences, including those of raising children, spending time with friends and family, and generally enjoying the rich offerings life gives.

    From a 2005  Penelope Trunk blog post:

    Forget the glass ceiling because it's about to become irrelevant. Not because women are finally going to get to the top of Fortune 500 companies in forces of more than two companies at a time. That may happen, but no one's holding their breath. The glass ceiling is going to become irrelevant because the women who are coming into the workforce now see what's above that glass and they are uninterested.

    .... five years after earning an MBA, 40% of women are working from home. Often the press writes about this statistic like it's a travesty, but I think it's great. It's an achievement that these women have decided they can find success on their own terms instead of having to fit themselves through paths that were established for men, decades ago.

    The disenchantment with corporate life is not limited to women: eighty percent of men aged 20 to 39 said that a flexible job to accommodate kids takes a higher priority than doing challenging work or earning a high salary.

    Many women with children -- and increasingly their male partners as well -- will gladly forgo career advancement, and the higher salaries that go along with it, in return for a more flexible job that allows for a better and more fulfilling family life.

    Moreover, many organizations have much less hierarchical structures today. This suits the many women and men who value life experiences over corporate ladder-climbing. Working on interesting projects and with great people is a life experience they treasure -- climbing a corporate ladder increasingly is not.

    Your thoughts?

    Mon Jan 18th 2010 at 10:44am EST
    ArchitectureBuildingWorkRuralUrban

    Career Development Opportunities Trump Pay

    Forty percent of employees in a survey were more interested in career development than pay and benefits.

    From the Saturday Globe and Mail:

    Career development prospects top the criteria for job candidates considering a new employer, a new survey finds.

    Forty percent of 1,300 respondents to a survey by staffing service Right Management Inc. said the potential for career development is the most important factor when choosing a new boss.

    That was followed by work-life balance (21 percent); innovative workplace (15 percent); and competitive pay and benefits (12 percent). Only 8 percent cared most about having good rapport with their manager.

    My thought here is the answer likely depends upon where you are in your life. Certainly it makes sense for younger knowledge workers to prioritize career development opportunities as an investment -- pay will come later. For those with young families (especially women, as per last-week's discussion) work-life balance may be more important. And later in life the paycheck may trump everything as retirement looms and university-aged children are needing help.

    What would you prioritize?

    Mon Jan 11th 2010 at 9:30am EST
    LightbulbInnovationTechnologyAbstract

    Campus Builds Capacity to Absorb Its Own Innovation

    In University and the Creative Economy, Richard Florida and colleagues build an economic development case around a region’s ability to capitalize on innovative technologies and research being produced at universities. Silicon Valley and Research Triangle are exemplary models. What if a region does not have this ability? Appropriately, they suggest a region work on developing the capacity to absorb university output through campus-industry partnerships. Otherwise, valuable intellectual property goes elsewhere. Or, worse off, and probably more common, it disappears into a black hole of uncommercialized ideas and patents.

    Now, for regions that have universities but neither the current ability to absorb, nor the means to create a working capacity, is there an additional solution? Is it time for the universities to build their own infrastructure to absorb and commercialize their own creativity? Maybe this is the crossroads where higher education and economic development policy can tango?

    How about new policies that substantially invest in universities absorbing their own innovative output when a region is not equipped? Incentivize the universities to transform economy by building infrastructure to commercialize the talent and academic ingenuity they harness. Maybe University Hospitals is a viable model in health care, but expand into other industry development aligned with a university’s output. Maybe we can learn from Chinese university-run businesses. Let’s equip universities, as my grandma used to say, with the whole “kit and caboodle” so a region can benefit.

    What’s the risk in doing so?

    Thu Jan 7th 2010 at 5:23pm EST
    LampLightDeskWorkTechnologyBusiness

    Will Job Dissatisfaction Lead to More Entrepreneurship?

    Though U.S. unemployment is in the 10 percent range and we continue to hear people are "just happy to be employed," a new survey from The Conference Board finds that only 45 percent of Americans are satisfied with their jobs. Even greater numbers of those under 25 are unhappy with their employment.

    Here is an excerpt from the On Deadline column/blog at USA Today.

    Only 45% of American are satisfied with their work, the lowest level ever recorded in 22 years of surveys, the Associated Press reports.

    The figure is down from 49% in 2008, says the Conference Board research group, which conducts the survey.

    Workers under 25 expressed the most dissatisfaction — about 64% of them saying they are unhappy in their jobs.

    That is a pretty large number of young American workers starting their careers in a negative way. One of the key findings was that most workers don’t find their job interesting.

    Doing something interesting -- creating something new, solving a problem that is important to a group of people, and working in an industry one is passionate about -- is a key driver for talented people.

    For some of the talented, this wave of unhappiness in the U.S. workplace will lead them to form new firms or become self-employed. This should lead to greater innovation and societal wealth.

    Moreover, smart existing organizations will continue to improve what they offer to talent. Even in the depths of a recession, talent must be satisfied with fair compensation, a stimulating environment and challenging work. This dissatisfaction trend, The Conference Board points out, has been growing for decades.

    Thu Jan 7th 2010 at 10:26am EST
    ArrowComputerMouseSky

    2010 Social Media Predictions

    Every year, Computerworld asks people in the geek community for their New Year's predictions. The full article is here.

    My responses included:

    We will see social networking fatigue, but savvy users will continue to use platforms to build their personal brands. For most people, updating Facebook gets tedious, and your "friends" really don't care which Hogwarts faculty member you are. Twitter takes a lot of work, although it can be a great personal brand-builder, with enough effort. LinkedIn is improving, mostly because of its Answers section; users can become well-regarded authorities in their subject areas by investing an hour or two per week posting thoughtful questions and responses. Plaxo? Please stop pestering me. You're too far down my social networking depth chart for me to spend any time with you.

    And

    While the concept of a social networking guru might seem quaint by 2013 (do you have a photocopier guru in your office?), there is an opportunity in 2010 for people who really understand how to make social networking happen within the enterprise. While there are still a lot of carpetbaggers and "gee-whiz" cheerleaders playing in this market, I still find that there are a lot of people who don't have a basic understanding of social networking and are reluctant to ask for help.

    What are your thoughts? What will 2010 have in store for social networking?

    Wed Jan 6th 2010 at 4:07pm EST
    ModernOfficeHomeStairs

    Are Women Taking Over the Workplace?

    From The Economist, December 30, 2009:

    The rich world’s quiet revolution: women are gradually taking over the workplace

    At a time when the world is short of causes for celebration, here is a candidate: within the next few months women will cross the 50 percent threshold and become the majority of the American workforce. Women already make up the majority of university graduates in the OECD countries and the majority of professional workers in several rich countries, including the United States. Women run many of the world’s great companies, from PepsiCo in America to Areva in France.

    Women’s economic empowerment is arguably the biggest social change of our times.

    From another article in the same issue:

    The rich world has seen a growing demand for women’s labor. When brute strength mattered more than brains, men had an inherent advantage. Now that brainpower has triumphed the two sexes are more evenly matched. The feminization of the workforce has been driven by the relentless rise of the service sector (where women can compete as well as men) and the equally relentless decline of manufacturing (where they could not). The landmark book in the rise of feminism was arguably not Ms Friedan’s “The Feminine Mystique” but Daniel Bell’s “The Coming of Post-Industrial Society”.

    Or perhaps Rise of the Creative Class is a landmark book for demonstrating why women have increasingly found a fit in the wage-earning world.

    Your thoughts?

    (Thanks to colleague MW for drawing my attention to the article.)

    Wed Jan 6th 2010 at 9:11am EST
    Green Business

    Working in "Green" Buildings

    In cities across the world, office buildings are becoming greener. New construction is now typically LEED certified -- often LEED Gold. Some older buildings are being retrofitted to meet US Energy Star standards.

    The result is new workplaces that theoretically are healthier for the individuals working inside as well as for the planet. To be certified under LEED, a building has to offer higher levels of natural air and light, for example, than is typical in conventional construction. Moreover, materials used on the interiors also may have fewer toxins, which can affect employee health.

    Over the past decade or so, the real estate industry has discussed and even debated the benefits of green buildings (versus their costs). One aspect of the discussion has centered around the employee workplace experience. Are people who work in green buildings better off? And are the companies and organizations who pay the rent seeing a difference in comparison to being in non-green structures?

    A recent report by Norm G. Miller of the University of San Diego and Dave Pogue, director of sustainability at CBRE, offers new survey results from the responses of 534 tenants (companies or organizations who occupy buildings) who had recently moved into green office structures.  Some data:

    First, from a human resource perspective:

  • 18 percent reported lower employee turnover in the new buildings
  • 22 percent reported higher employee morale
  • 23 percent reported easier recruiting of employees
  • 45 percent reported fewer sick days while another 45 percent reported no change
  • Second, the question of employee productivity:

  • 55 percent agreed or strongly agreed with the statement, "Employees are more productive," while 43 percent were neutral and only two percent disagreed.
  • Finally, other benefits:

  • 74 percent of companies surveyed said the new building provided "a good image for clients and public."
  • The authors also noted that companies occupying green buildings tended to have employees with higher-than-average wages. They therefore speculate that because of the salaries being paid these people, employers may want to ensure they maximize their productivity on the job.

    This data is consistent with some other, often smaller, survey samples out there -- such as from Gensler.

    But aggregate statistics do not always tell the whole, human side of the story. What are your experiences?

    Do you work in a certified, green building? Do you feel more productive or healthier than you have in other environments?

    Would you select an employer based on the job being in a green building?

    Mon Jan 4th 2010 at 9:24am EST
    TrainTransportationUrbanTravel

    Pollyanna Rides the Rails

    Last week President Obama announced that he would provide $8 billion of funds to study and plan high-speed rail systems in the U.S. My state of California received $2 billion to study a high-speed train link between San Francisco and Los Angeles. This is to go with a $10 billion bond issue that state voters approved for feasibility studies and right-of-way acquisition. As an aside, California voters have been approving bond issues for anything and everything for the last two decades, but never considering how the bonds will be paid. Now the state is bankrupt and we are studying and planning a high-speed rail system, while squeezing our universities, releasing criminals (not such a bad idea for those convicted of victimless crimes), chopping existing mass transit, and firing teachers. Go figure.

    But this is not what worries me the most. We are studying a high-speed intercity rail system, when all over California and the nation, while dramatically increasing fares and cutting back mass transit service. The Bay Area BART is laying off workers, increasing fares, and will probably have to cut services. The Sacramento area transit system is laying off workers, cutting service, and raising fares. Atlanta’s MARTA is raising fares, curtailing service, and laying off workers. The New York MTA is increasing commuter fares and cutting service. You get the picture.

    The bullet trains in Japan are so convenient because of the excellent mass transit when you get to your destination. Mass transit is what makes the northeast corridor trains work.

    Does it make sense to pay to plan and study high-speed train lines while the existing energy saver and public amenity that makes cities more livable -- mass transit -- is being dismantled? Why not support and improve existing mass transit first? How are we going to have great cities without a functional mass transit system?

    Sun Jan 31st 2010 at 2:10pm EST
    computerscreen

    SAS and Twitter Today

    Check out today's Tweets focusing on SAS, one of the largest software companies in the world:

  • SAS Institute tops list of best places to work
  • Managing for Creativity, me and SAS CEO Jim Goodnight on SAS model in HBR
  • Video of Goodnight and me on SAS model
  • Not following Richard on Twitter? Join the club: @Richard_Florida

    Fri Jan 22nd 2010 at 9:23pm EST
    Crane and sunrise

    The Value of Iconic Architecture

    I recently had the opportunity to visit Milwaukee, WI, for the first time (thank you FUEL Milwaukee!). And visiting cities for the first time, to me, is particularly exciting. Arriving for the first time is a pure and unadulterated experience. First impressions matter and how a city presents itself to a first-time visitor is very important. I learned this from my friend Charles Landry.

    [caption id="attachment_13530" align="alignright" width="340" caption="Milwaukee Art Museum"][/caption]

    I arrived via the airport with the typical location outside of city. My host takes the highway toward the city. As we approach the Hoan Bridge, we pass amid the Port of Milwaukee. On both sides, there are mountains of bulk materials and cranes. While not beautiful, there is the appearance of activity and a muscularity that says “we work here.” As we crest the bridge (with its own very strange design element) I am startled because the city presents itself there in panorama. The city in the hills to the left, the waters of Lake Michigan to the right. And to the right, near the lake, your eye is drawn to the white sails of the Santiago Calatrava masterpiece at the Milwaukee Art Museum.  It looks so different and unexpected in the tableau that one cannot help but to stare. Unexpected because this is the Midwest where modern iconic design is not the norm and that is not a shot; I am originally  from the Midwest!  More photos click here.

    While many question the value of “starchitects” and iconic design, I have to say that my impression of Milwaukee was and is shaped in no small part because of that building. It is different and it says something about Milwaukee that no amount of advertising and marketing could equal. It says in a profound way “we are not what you expect” and that Milwaukee is looking to the future and beyond the beer brewery image of its past. The building says it in a visible and demonstrable way that one cannot deny.

    Cities that are arguing over the cost/benefits of such iconic architecture should consider the context in which the new building will occur. In starchitect-rich Singapore, one more Calatrava or Libeskind is just keeping up with the crowd. In cities with a dearth of quality architecture (lots of those) or cities that need to redefine themselves in the 21st century, a new building can be a catalyst for new design and a whole host of other values.

    Tue Dec 1st 2009 at 8:08am EST
    14th Street Lifeguard Tower

    Florida Tourism - A Double-Edged Sword

    In her September 3 blog post, "Creative Florida", Rana Florida asked for thoughts about Florida tourism. As a resident of St. Petersburg, Florida, I thought I should respond.

    Tourism has long been the golden goose in Florida but it is also a double-edged sword. We have no state income tax in large part due to the sales tax revenue that tourism provides. When the tourists come, the coffers fill and all is well. When we have downturns in the economy or other disruptions (such as hurricanes or 9/11) our budgets shrink. This volatility prevents us from having a predictable revenue stream which in turn means less long-term planning.

    For better or worse, tourism also defines Florida. For many it is great to have that identity but I know a lot of creative class entrepreneurs in high-tech who lament that they can't attract talent or VC interest because no one takes Florida seriously as a business environment.

    But to me the largest impact of tourism is that it has made us lazy (I say this with love, Florida!). Tourism is easy money and we have coasted on that for too long. When the tourists just arrive with bags of money, why innovate? Why invest in our schools or our infrastructure? Why make the hard tax choices when we can raise the bed tax on hotel rooms or local tax on car rentals? We need to rethink tourism and make it a higher value experience, one that leverages the service economy and makes it more creative and innovative.

    Florida had a wake-up call last year when, for the first time since WW2, we had a net outflow of population. That is a seismic shift in the underpinnings of Florida's economy and I hope that it forces us to look at diversifying our economy and making the harder choices of developing industries beyond the beach and theme park.

    Fri Nov 27th 2009 at 8:00am EST
    RecordsMusicLifestyleAbstract

    Mariah Carey, Music Mogul

    Fascinating interview with Mariah in The Times of London on selling-out, music business models, creativity, and more (h/t Dan Silver). Money quote:

    “I don’t care if the rock-band person thinks, ‘Oh, I’m a sellout’. Well, guess what? They’re a sellout anyway for going to a record company. I’m sorry — you are. You want to just play in bands in bars? Then do that. Or play on the streets. And if someone throws you some dollars, then you can go get a soda. But you could also help somehow merge the soda business with the music business in a way that is creative.”

    Wed Nov 25th 2009 at 10:00am EST
    CreamSprinklesFood

    The Geography of Obesity

    Obesity has reached epidemic proportions in America. More than 72 million American adults are obese, according to estimates from the National Center for Health Statistics. But obesity varies greatly by state. The map below, from the Centers from Disease Control (CDC), shows the obesity rate for the 50 states, measured as the share of people with a Body Mass Index (BMI) over 30 which the CDC classifies as "obese."

    A week or so ago, I looked at the relationship between smoking and a variety of economic, social, and health factors. With a helpful analytical hand from Charlotta Mellander, we found that smoking was significantly correlated with obesity as well as being correlated with education levels, class structure, and other factors. So, we decided to take a quick look at the state-level factors that might be associated with obesity. We ran some simple correlations and scatter-plots between state obesity rates and these factors. As usual, we point out that correlation does not imply causality, but simply points to associations between variables. Still, a number of interesting things stand out.

    It should come as little surprise that states with higher levels of obesity have significantly higher rates of death from cancer, heart disease, and cerebrovascular diseases like hypertension. There is a significant correlation between obesity and death rates from cancer (.7), heart disease (.7), and cerebrovascular disease (.7).

    It might be, however, that states with greater percentages of obesity are those where people pay less attention to their health generally or are more likely to engage in risky behavior. And that's what we find at least in the case of smoking which correlates highly with state levels of obesity (.8).

    Might obesity be related to states' broader social and psychological climates? To get at this, we looked at the relationship between obesity and a commonly used measure of subjective well-being or happiness developed by the Gallup Organization. Obesity is negatively associated with state happiness (with a correlation of -.6). Since these correlations only reflect associations between variables and not causality, it's hard to say whether this reflects the fact that happier people eat less, are healthier, or are less prone to obesity, or if unhappier people eat more, are unhealthier, or are somehow more prone to obesity, or if both obesity and happiness levels reflect something else. To get at this, we look at the associations between state obesity rates and social and demographic factors below.

    Common sense would suggest that more affluent people would have lower levels of obesity and poorer ones higher, and we find such an association. Obesity is correlated with income levels (-.6) and more moderately so with economic output, measured as gross state product per capita (-.4).

    One would think that states with greater concentrations of more highly educated people have lower levels of obesity, and that is what we find. States with higher levels of human capital, measured as the percentage of adults with a college degree, have lower levels of obesity (the correlation being -.8).

    To what extent does obesity reflect the kind of work people do? We examine the relationships between obesity and three classes of jobs - creative/professional/knowledge jobs, blue-collar working class jobs, and standardized service class jobs like those in food processing and home health care. Obesity is strongly associated with the share of working class jobs (with a correlation of .7). Obesity is negatively correlated with the share of creative class jobs (-.6). Obesity is also negatively correlated with the share of service class jobs (-.4), though more moderately so.

    Obesity is lower in states with higher concentrations of artists, musicians, and entertainers (with a correlation of-.6), those with larger concentrations of gays and lesbians (-.5), and immigrants (-.5). This likely reflects broader structural characteristics of those states, as more highly educated states also tend to be more tolerant and open to diversity.

    Wed Nov 25th 2009 at 9:00am EST
    MatchRedBlackDifferentGroupCrowd

    The Geography of Smoking

    One in five Americans continue to smoke cigarettes, according to a new survey by the Centers for Disease Control and Prevention. The smoking rate varies from low of 9.2 percent in Utah to a high of 26.6 percent in West Virginia. The map below, from the Wall Street Journal, shows the smoking rate by state.

    The data are interesting and they allow us to look at the extent to which smoking is associated with all sorts of things, from more obvious ones like cancer and heart disease to the economic and demographic characteristics of states with higher or lower levels of smoking and even the relationship between smoking and happiness. With a helpful analytical assist from my colleague Charlotta Mellander, we decided to take a quick look. We ran some simple correlations and scatter-plots between state smoking rates and these factors. As usual, we point out that correlation does not imply causality, but simply points to associations between variables. Still, a number of interesting things stand out.

    It will come as little surprise that states with higher levels of smoking have significantly higher rates of death from cancer, heart disease, and cerebrovascular diseases like hypertension.  There is a significant correlation between state smoking rates and death rates from cancer (.75), heart disease (.67), and cerebrovascular disease (.59).

    It might be, however, that states with greater percentages of smokers are those where people pay less attention to their health generally or are more likely to engage in risky behavior. Consider the relationship between state smoking rates and their levels of obesity, where we find significant association both for obesity among adults (.68) and children (.57).

    Might smoking be related to states' broader social and psychological climates? To get at this, we looked at the relationship between smoking and a commonly used measure of subjective well-being or happiness developed by the Gallup Organization. Smoking is negatively associated with state happiness (with a correlation of -.71). Since these correlations only reflect associations between variables and not causality, it's hard to say whether this reflects the fact that happier people smoke less or unhappier ones smoke more, or that both smoking and happiness levels reflect something else. To get at this, we look at the associations between state smoking levels and social and demographic factors below.

    Common sense would suggest that more affluent people would smoke less and poorer ones would smoke more, but that's not what the data indicate - at least when comparing states. State smoking levels are not related to state income levels or to Gross State Product per capita; the correlations for both are not statistically significant.

    One would think that more highly educated people smoke less. And that is borne out by our analysis. Smoking is reasonably associated with education levels, measured as the percentage of adults with a college degree (with a negative correlation of -.76).

    To what extent does smoking reflect the kind of work people do? We examine the relationships between smoking levels and three classes of jobs - creative/professional/ knowledge jobs, blue-collar working class jobs, and standardized service class jobs like those in food processing and home health care. The strongest association is with working class jobs, with a correlation of .5: Smoking is higher in states with a greater concentration of these blue-collar jobs. Smoking is also associated with service class jobs. But here the correlation is negative (-.62). Smoking does not appear to be associated with knowledge-professional-creative jobs, the correlation here is not statistically significant.

    That said, smoking rate is associated with concentrations of artists, musicians, and entertainers. Contrary to the stereotypical image of cigarette-puffing bohemians or hipsters, smoking is less prevalent in states with more of these artistic types: The correlation is negative (-.50), and about the same as for education.

    Lastly, smoking is negatively correlated with larger concentrations of gays and lesbians, as well as immigrants (both with correlations of roughly -.45). This likely reflects broader structural characteristics of those states, as more highly educated states also tend to be more tolerant and open to diversity.

    Tue Nov 17th 2009 at 9:00am EST
    MusicNoteLifestyle

    Music Cities of North America

    Digital technology from myspace.com to a recording studio on your laptop means that music can literally be made and distributed anytime, anyplace, and anywhere.  But it is also clear that a great deal of music continues to come out of particular cities and their music scenes.

    The graph below, from a new study from my colleagues at the Martin Prosperity Institute ranks the major music locations in the U.S. and Canada. Even before I moved to Toronto I was aware of the musical talent that comes out of Canada: from classic rockers like Joni Mitchell and Neil Young to Rush's brand of rock and pop stars like Nelly Furtado or indie darlings New Pornographers, Arcade Fire, and Feist. So our team at the Institute decided to see what the numbers might tell us about differences between the Canada and U.S. music industries.

    The rankings are based on location quotients which gauge the relative concentration of music industry establishments, including record labels, distributors, recording studios, and music publishers.

    Interestingly enough, half the top 15 cities are  Canadian. Still, the  United States is home to the two top-ranked cities - Nashville which is literally off-the-chart on this measure and Los Angeles, the center for global entertainment.  Toronto, Vancouver, and Montreal all out-rank New York on this score. Atlanta makes the top 15 as do college towns like Austin and Madison, Wisconsin. U.S. establishments are  considerably bigger than their Canadian counterparts, with average receipts of $4.1 million per establishment, nearly eight times the Canadian average of $540,000. But, Canada in fact has about five times the level of music establishments after controlling for population, 5.9 music establishments per $100,000 compared to 1.2 for the U.S.

    The full report is here.

    Thu Nov 12th 2009 at 3:56pm EST
    BuddhaHappy

    Happy (and not so happy) Places

    There's no shortage of lists of the world's happiest nations or of the happiest of the 50 U.S. states. The folks at the Gallup-Healthways Well-Being Index have also compiled detailed happiness scores for America's 435 Congressional Districts (see the map below).

    The table below shows the 10 highest-scoring and the 10 lowest-scoring congressional districts on the Well-Being Index. The table speaks for itself. The happiest districts are among the most affluent in the nation. Six of the top 10 are affluent and physically magnificent California communities. The least happy districts are mainly places of extreme disadvantage, inner-city neighborhoods in Detroit, Cleveland, South Philly, the Bronx, or Appalachia. There are a couple of slight anomalies - wealthy Grosse Point, Michigan, is lumped together with poor inner-city Detroit neighborhoods (wonder why that would be?), and given the devastation of greater Detroit it's not surprising that even the rich would be less happy then elsewhere. And hipster Williamsburg is lumped together with Bed-Stuy: But, then again, whoever said hipsters were happy...

    Tue Nov 10th 2009 at 9:00am EST
    CheeseFood

    Imperial Over-Eat

    Paul Kennedy famously argued that imperial overstretch -- that is devoting too much money and resources to military uses -- plays a central role in the decline of great powers, including the United States. But it looks like America's growing obesity epidemic is reducing the pool of capable recruits, according to this story in The Washington Post (via Dana Goldstein).

    About 75 percent of the country's 17- to 24-year-olds are ineligible for military service, largely because they are poorly educated, overweight and have physical ailments that make them unfit for the armed forces, according to a report to be issued Thursday.

    Other factors, such as drug use, criminal records and mental problems, contribute to what military leaders say is a major problem that threatens the country's ability to defend itself at a time when the all-volunteer force is already strained fighting two wars.

    Money quote:

    When you get kids who can't do push-ups, pull-ups or run, this is a fundamental problem not just for the military but for the country," said Curtis Gilroy, the Pentagon's director of accessions policy. Many kids are not "taking physical education in school; they're more interested in sedentary activities such as the computer or television. And we have a fast-food mentality in this country."

    Childhood obesity varies considerably across the fifty states and reflects some straightforward economic and demographic patterns, according to a basic correlation analysis by my colleague Charlotta Mellander. Childhood obesity, not surprisingly, reflects adult obesity (with a correlation of .54). It is also more prevalent in states with large working class populations (.4). It is less likely in states with higher income levels (-.32), greater concentrations of the creative class (-.37), and especially those with higher levels of adults with college degrees (-.64).

    Photo Credit: Flickr User Seattle Municipal Archives

    Fri Nov 6th 2009 at 3:00pm EST
    AndyWarholStampLetter

    What Would Andy Warhol Say About the Internet Celebrity?

    Andy Warhol’s famous 1968 quote, "In the future, everyone will be world-famous for 15 minutes,” has not yet come true, but the spirit of it is manifested in the world of cyberspace. At least everyone has the opportunity and the platform to become world-famous.

    The United Breaks Guitars phenomenon is well-documented. The main story is that  a clever video with outstanding production value even though it was created on a shoestring describes how a checked guitar belonging to Dave Carroll was broken by baggage handlers. The video has been viewed almost six million times and the Sons of Maxwell have been elevated from a talented but relatively unknown band into a much bigger deal. The song itself reached #1 on the Country and Western charts in the U.K., iTunes sales skyrocketed and, yes, the guitar situation was finally resolved.

    But, you probably already knew about the Taylor Guitar if you spend a lot of time online. The oeuvre of jrdmovimkr, an artist that makes fantastic stop-motion videos may have slipped your attention. His medium? Lego. Have a look at his work in this video – a shot-by-shot tribute to “White and Nerdy” by Weird Al Yankovic.  jrdmovimkr’s work has been viewed more than 3.4 million times.

    Success on YouTube for witty self-created videos isn’t political or dependent on how rich, connected, or good-looking the author is – it is a complete meritocracy. If your work is clever and entertaining, it will gain acclaim and you will be famous, at least in the online world, and probably for more than 15 minutes.

    You can ask the creators of the Potter Puppet Pals. Their most popular video has been viewed more than 70 million times. Seventy million people, by the way, would be enough to be the 15th most-populous country in the world.

    Mon Nov 2nd 2009 at 12:49am EST

    The Larry King Effect

    Last week, the Pew Research Center recently released its report on marriage in America. Based on data from the U.S. Census American Community Survey for 2008, it provides a wealth of data on marriage and divorce across the 50 states. Check out the map here. Catherine Rampell provides a nice summary over at Economix.

    The thing that jumped out at me was the "Larry King" statistic - the number of people who have been married three or more times.

    About one-in-twenty Americans who ever have been married said they had been married three or more times. That comes to 4 million men and 4.5 million women.

    States varied a lot on this. Arkansas had the highest percentage of "serial marrieds," 10 percent. This was five times more than New York, New Jersey, and Massachusetts with just two percent. The study found that multiple marriages were less likely in states with high concentrations of college-educated people, and more likely in states with lower incomes and smaller college-educated populations.

    Over the weekend, I enlisted my number-crunching colleague Charlotta Mellander to look at what other factors might be related to such serial marriage. We looked at unemployment, the class composition of the workforce, immigration, gay population, religion, and levels of psychological well-being. Our analysis points to associations and not causal relationships. It shows that a relationship exists, but not that one causes the other.

    Class: Serial marriage was less likely in states with high creative class concentrations (a correlation coefficient of -.59). Conversely, it was was much more likely in working class states (.63). The effect of class was about the same as for income (-.58) and human capital (-.65). When we controlled for income, the association between class and marriage remained significant (-.33 for the creative class and .39 for the working class). Class appears to have a relationship to multiple marriage which is distinct from income.

    Immigrants, Gays, and Bohemians: Multiple marriage was significantly less likely in states with high immigrant concentrations (-.38), though the association was less than for class. Bohemians: Multiple marriage was also less likely in states with high bohemian concentrations (-.49). So much for the libertine bohemian lifestyle - at least when it comes to multiple marriage that is. There was no correlation between multiple marriage and the share of the gay population.

    Religion: The Pew study did not a strong correlation between religion -  measured as the percentage of people who said religion was “very important” in their lives - and marriage or divorce patterns. Our association suggests at least a moderate one. Religion was positively associated with multiple marriage (.43). Multiple marriage was more likely in more religious states

    Well-Being: Multiple marriage was less likely in states with high levels of psychological well-being (-.37).

    Wed Oct 21st 2009 at 9:43am EDT

    Are Computers Making Us Stupid?

    When I went grocery shopping last week, "sunflowers" were on my list, but with details. I was looking for non-variegated yellow petals and black centers (my wife has a much better artistic sense than I do, so I sometimes get these kinds of instructions). When I got there nothing exactly matched the description so I whipped out my iPhone, took a picture of the sunflowers they had, emailed it home, and called my wife. She said those were fine so I picked them up and, feeling very pleased with myself for my new-media savvy, turned around to find that someone had walked off with the cart that had my shopping list in it. While I was focused on the e-world, the real world had gone ahead without me.

    This reminded me of a recent cab ride. We were at the airport and got in a taxi. I told the driver the address and what route to take - a well-known shortcut I had learned years ago when I drove a cab. He was flustered and angry because he didn't know where I was talking about going - he usually just entered an address into his onboard computer, which gave him a route with instructions. He didn't actually know where he was. I realized that this isn't unusual, many cabbies don't learn their city anymore because they don't have to. Another disconnect from reality.

    As with Wendy's recent post about Blackberries in meetings, it looks like the ubiquitous electronic virtual reality is disconnecting us from the world we live in. From people walking down the street listening to earphones, to drivers talking on cell phones, more and more we're not in touch with what's happening right around us. We're dependent on Google or Wikipedia for information, or GPS for directions, or e-mail and texting for communicating with people in the same building.

    What does this mean for our ability to live and work in the real world? Are we losing the ability to find our way and work out solutions on our own? Are computers making us stupid?

    Mon Oct 12th 2009 at 6:29pm EDT

    Driving Alone - A Quick and Dirty Analysis

    Earlier this week Catherine Rampell posted this map over at Economix. It shows the percentages of workers who drove to work alone by state and is based on U.S. Census data.

    D.C. has the lowest rate - a fact which was not lost on D.C. blogging circles. NY did well too.  The worst performers were Alabama, Tennessee, and Ohio, where about eight in 10 workers drive alone -  more than double that of D.C.

    With the help of my colleague Charlotta Mellander, we took a quick look at some factors that might be associated with this geographic pattern. It's not an exhaustive list: We examined some key economic factors like income and economic output, human capital and the creative class, and psychological ones like happiness, stress, and personality. We removed D.C. from the analysis because it was such an extreme outlier. We did not develop or run any serious multivariate analysis - just simple correlations, or associations, between variables.

    Still the findings point to some reasonably clear patterns.

    Income and Economic Output: The richer the state, the less likely people were to drive alone. Driving alone was negatively correlated with state income levels (-.46) and output per capita (-.41).

    Class and Human Capital: States with higher percentages of college graduates (-.47) and the creative class (-.43) were less likely to have people driving alone. Driving alone was much more likely in states with large working class concentrations (.62).

    Professional and Creative Jobs: Driving alone was less likely in states with high concentrations of virtually every type of professional, knowledge-based and creative jobs. But it was least likely in states with large concentrations of artists, designers, and entertainers (-.63), architects and engineers (-.61), scientists (-.56 ), and lawyers (-.55).

    Diversity - Immigrants and Gays: Driving alone was less likely in states with high concentrations of immigrants (-.51) and gays (-.41).

    Happiness: Happiness research tells us that commuting is one of life's least pleasurable activities.  Driving along was negatively associated with state levels of happiness and well-being (-.46) and positively associated with states with higher levels of stress (.29).

    Personality: Psychologists identify five main personality types. Driving alone was more likely in states with high levels of three of them: extroverts (.29), conscientiousness (.36), and agreeableness (.44). Interestingly, there was no association between driving alone and the two other types - neurotic and openness to experience, which some might say makes it harder to explain New York.

    Sun Oct 11th 2009 at 10:31am EDT

    Driving Alone

    This map is cool (via Catherine Rampell at Economix and based on Census data).

    Yikes: More than 100 million American workers drive to work alone. Rampell, one of my fave economics bloggers, explains:

    About three-quarters of American workers drove to their jobs alone in 2008. The least carpool-friendly states appeared to be Alabama, Tennessee and Ohio, where about 83 percent of workers drove alone. The District of Columbia and New York — whose residents are heavily dependent on public transportation — had the lowest rates of solo commuters, at 37.2 percent and 53.7 percent.

    Anybody have the stats for Toronto?

    Wed Oct 7th 2009 at 4:28pm EDT

    Evolving Etiquette of Social and Mobile Technologies

    Social media, communications technologies, and more flexible workplace attitudes have been driving changes to the way we view our personal and professional lives.

    A recent Knowledge at Wharton article examines the evolving etiquette as well as challenges surrounding the rise of mobile technologies, such as the Blackberry, as well as social media websites like Facebook and LinkedIn.

    As Facebook, Twitter and 24-hour Blackberry access blur the lines between business and personal lives, managers and employees are struggling to develop new social norms to guide them through the ongoing evolution of communications technology. Wharton faculty and other experts say the process of creating rules to cope with the ever-expanding reach of modern communications has just begun, but will be shaped largely by individuals and organizations, not top-down decrees from a digital Emily Post. Generational differences in the approach to openness on the Internet will also be a factor in coming to common understandings of how and when it is appropriate to contact colleagues, superiors or clients.

    The article then details some dilemmas - where do you stand?

    1.  First, is there a time when "work" should stop and "personal life" should take over?  From the Wharton article:

    For example, a Blackberry can allow parents to attend their childrens' soccer games while remaining in contact with colleagues at the office in case an emergency comes up. But, [Nancy Rothbard] adds, "you have your Blackberry at your kid's soccer game. That's another ... line you may be crossing."

    2.  Is it healthy to blur your personal self and professional self ?

    ...says Wharton marketing professor Patricia Williams, "There is the self we are for our friends, a self for our family [and] a professional self. What's interesting is the degree to which we are comfortable playing all of those 'selves' at one time."

    "I've heard people say that Facebook is for personal friends and LinkedIn is for professional contacts," Williams notes. "But many of my Facebook friends are my colleagues - people who work just down the hall - and I don't have a problem with that. I do, however, have some discomfort being 'Facebook friends' with my students, because it gives them access to my personal self that's not normally available to them."

    3. Are younger people, today's children up through college students, growing up with no separation between these different "selves"?  And what will this mean for the way we work?

    Typically, business norms evolve through official policy disseminated by organizations and by "reality" that bubbles up from the organization's grassroots. [Wharton Professor Monica McGrath] asks "The question is: How accessible do you want to be? [Today,] young people want to be very accessible, and in an international corporation you are expected to be available [around the clock]. Time zones mean nothing. The norms will continue to develop based upon generational leadership."

    To sum up, I expect that the line between personal and professional will become increasingly blurred. First, knowledge work is highly collaborative and it's hard to work with people who you don't like - therefore, people will forge friends through collaboration at work. Second, younger generations will have grown up with limited separation between their different personas.

    How do mobile and social media technologies enhance or detract from your personal and professional life?

    Mon Oct 5th 2009 at 9:19am EDT