How the Crash will Reshape America

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mstjane's picture
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Joined: Feb 9 2009
Posts: 28
How the Crash will Reshape America

The Atlantic March 2009 issue has an interesting article The Suburbs lose ... The SUnbelt fades ...New York wins ... How the Crash Will Reshape AMerica.  This is  well worth a read and thought ...  

it speaks to the economic landscape in terms of what parts of the US towns/cities/geographic areas will survive reinvent or be best places to be in this fundamental long term transformation.

EG NYC is known for the finance industry but has vibrant & diverse economy in terms of creative industries such as media to design, high tech companies like Bloomberg and a mecca for fashion desigers  musicans, film directors and psychiatrists (quote page 49)

He speaks to the reshaping of the economy by economic geography.  He quotes  University of CHicago Robert Lucas economist "spill over of konwledge that results from talent clustering


Interesting he thinks Charlotte N Carolina is well positioned to do well where as fewer manufacturing jobs and industrial centers will diminish whereas interestingly he points to the success of Pittsburg reinventing itself as a tech center.

All seems to revolve around the diverse economy built around broad range of creative industries ...

Author Fareed Zakaria in The POst-AMerican WOrld wrote that this transition will be marked less by AMerican decline (and yes there will be) more by "the rise of the rest leading to a world economy defined and directed from many places and people"

THere is some good writing on other places such as Asia & Middle East

Peter G's picture
Peter G
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Joined: Sep 17 2008
Posts: 11
Re: How the Crash will Reshape America

Here is another view point on how a crash could reshape the USA. It is quite long but you could jump to the 18:45 point to cut down on it some. 





jpitre's picture
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Joined: Mar 3 2009
Posts: 366
Re: How the Crash will Reshape America

Richard Florida's article in the Atlantic hinges around his statement about the   what makes a viable economy, as he puts it --  "Instead it depends on generating and transporting ideas. The places that thrive today are those with the highest velocity of ideas, and the highest density of talented and creative people, the highest rate of metabolism" -- which somehow translates into NYC being successful. The economic changes currently underway trump the corrupt idea that we have risen beyond actually making something. Wealth comes from creative ideas that are translated into real products -- shuffling paper and pretending to create wealth doesn't cut it. Without an abundance of cheap energy from oil along with the resulting low cost food and commodities, there is no fat let over for the bloated Wall Street types

We've just seen the creative, high density genius in the "City" combine to concoct the perfect storm to bring down the entire economic system of the world. Their financial success has been based on thievery and deception all the while living in completely unsustainable ways that have depended on hardworking Americans all over the country sweating to feed the beast and contribute what little earnings they could eke out back to the robber barons running the show. 

NYC can't feed itself or carry out its garbage without depending on others let alone lead the rest of the country. 

His article does however make good points about the Phoenix and Las Vegas bubble  where the majority of the economies there have been based on the idea of building and they will come and somehow the economic basis for having a city doesn't  count -- as long as they keep building.

Bottom line is that it is not clear where al this leads, but things are going to be a lot different in the future, and cities are unlikely to look much like they do now in 20 years, let alone provide healthy productive live styles. A lot more people are going to have to get their hands dirty and go do some real productive work if we are to get out of this mess. And that probably includes you and me -- and I thought I was retired !



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