How Silicon Valley Went From ‘Don’t Be Evil’ to Doing Evil

This article first appeared at The Orange County Register.

Meet the new boss. Same as the old boss.

— The Who, “We won’t be fooled again”, 1971

Once seen as the saviors of America’s economy, Silicon Valley is turning into something more of an emerging axis of evil. “Brain-hacking” tech companies such as Apple, Google, Facebook, Microsoft and Amazon, as one prominent tech investor puts it, have become so intrusive as to alarm critics on both right and left. Read more

The New Opportunity Boomtowns

Excerpted from an article that first appeared on Chief Executive.net.

A century ago Detroit was a boomtown and Los Angeles a sleepy refuge for sun-seeking Midwesterners. A half-century later, L.A. was the fastest-growing big city in the high-income world, while Detroit was beginning its long tailspin. In the ’70s, New York was the “rotten apple” and seemed destined for further decline. But for the past 20 years it has enjoyed an enormous surge of wealth, as have many of the countries’ dense, culturally creative cities.

In other words, when it comes to the death and life of American cities, things change, often in unpredictable, once unthinkable ways. Now, high prices and a lean to the left in the nation’s coastal metropolises could spell new opportunity for more business-friendly, less costly regions like Dallas-Fort Worth and Salt Lake City. If current trends continue, there may be new hope not only for Midwestern cities like Columbus, Indianapolis and Kansas City, but even for some long down-on-their-luck metros, like Detroit and Cleveland.

Read the entire piece at Chief Executive.net.

Joel Kotkin is the Roger Hobbs Distinguished Fellow in Urban Studies at Chapman University and executive director of the Houston-based Center for Opportunity Urbanism. His newest book, The Human City: Urbanism for the rest of us, was published in April by Agate. He is also author of The New Class Conflict, The City: A Global History, and The Next Hundred Million: America in 2050. He is executive director of NewGeography.com and lives in Orange County, CA.

Homepage photo credit: Salt Lake City, by Garrett via Flickr, using CC License.

Trump’s Infrastructure Plan is a Rare, and Potentially Bipartisan, Feel Good Moment

This article first appeared at The Orange County Register

President Trump’s proposed trillion dollar plus infrastructure program represents a rare, and potentially united feel good moment. Yet before we jump into a massive re-do of our transportation, water and electrical systems, it’s critical to make sure we get some decent bang for the federal buck. Read more

The Screwed Millennial Generation Gets Smart

This article first appeared at The Daily Beast.

It turns out that kids today want the same thing their parents did—a home of their own that they can afford to raise a family in.

It’s been seven years since I wrote about “the screwed generation.” The story told has since become familiar: Millennials, then largely in their twenties, faced a future of limited economic opportunity, lower incomes, and too few permanent, high-paying jobs; of soaring college debt and structural insecurity (PDF). The Census Bureau estimates that, even when working full-time, they earn $2000 less than the same age group made in 1980 (PDF). More than 20 percent of people 18 to 34 live in poverty, up from 14 percent in 1980 (PDF). Read more

The Cities Where African Americans are Doing the Best Economically 2018

This article originally appeared at Forbes.

The 2007 housing crisis was particularly tough on African-Americans, as well as Hispanics, extinguishing much of their already miniscule wealth. Industrial layoffs, particularly in the Midwest, made things worse.

However the rising economic tide of the past few years has started to lift more boats. The African-American unemployment rate fell to 6.8% in December, the lowest level since the government started keeping tabs in 1972. Although that’s 3.1 percentage points worse than whites, the gap is the slimmest on record. A tightening labor market since 2015 has also driven up wages of black workers, many of whom are employed in manufacturing and other historically middle and lower-wage service industries. Read more

Can the Trump Economy Trump Trump?

This article first appeared at City Journal.

President Trump’s critics find it hard to give him credit for anything, especially given his extraordinary boastfulness. Yet Trump’s economic policies seem to be working. New job numbers are robust, GDP and wages continue to rise, stocks are soaring, unemployment continues to decline, and overall growth is at its highest in 13 years. And this salutary picture is not exclusive to big business; the index of small business optimism, as measured by the National Federation of Independent Business, has reached its highest level in the 45-year history of the survey.

Some positive trends can be traced to the Obama years, but there’s clearly been a shift in trajectory and direction of the economy. As President Obama once noted, “elections have consequences.” Under Obama, federal policies—the “stimulus,” non-regulation of tech giants, ultra-low interest rates— benefited urban core, blue-state bastions that now constitute the unshakeable base of the Democratic Party. Under Trump, most working- and middle-class workers benefit from higher standard tax deductions and energy deregulation, while the affluent in high-tax states like California, New York, and Illinois are likely not to do as well.

Read the entire piece at City Journal.

Tech’s New Hotbeds: Cities With Fastest Growth in STEM Jobs Are Far From Silicon Valley

This piece originally on Forbes.com.

The conventional wisdom sees tech concentrating in a handful of places, many dense urban cores that offer the best jobs and draw talented young people. These places are seen as so powerful that, as The New York Times recently put it, they have little need to relate to other, less fashionable cities.

To a considerable extent, that was true – until it wasn’t. The most recent data on STEM jobs – in science, technology, engineering or mathematics – suggests that tech jobs, with some exceptions, are shifting to smaller, generally more affordable places. Read more

What’s Red, Blue, and Broke All Over? America

This piece originally appeared on The Daily Beast.

Beneath the sex scandals, moronic tweets, ridiculous characters, and massive incompetence that dominate Washington in this mean period of our history lie more fundamental geopolitical realities. Increasingly it is economics—how people make money—rather than culture that drives the country into perpetual conflict.

The tax bill brought that conflict to the surface, as Republicans made winners of Wall Street and the corporate elites, as well as most taxpayers and homeowners in lower-cost states, and losers of high-income blue-state taxpayers in high-tax states such as California, New York, and New Jersey.

A U.S. News and World Report headline denounced the bill as a declaration of “War Read more

Rising Rents are Stressing Out Tenants and Heightening America’s Housing Crisis

This article first appeared at Forbes.

The home-buying struggles of Americans, particularly millennials, have been well documented. Yet a recent study by Hunt.com found that the often-proposed “solution” of renting is not much of a panacea. Rents as a percentage of income, according to Zillow, are now at a historic high of 29.1%, compared with the 25.8% rate that prevailed from 1985 to 2000.

No surprise, then, that 58% of the 1,300 renters in the Hunt survey said they felt “stressed” about their rent, or that many respondents said they couldn’t save for future purchases like homes. Rather than the sunny freedom promised by those who promote a “rentership society,” most of those surveyed said that finding a convenient place with the amenities they required – for example, fitness rooms, places for pets and adequate space – was very difficult. Some renters have been forced to euthanize their pets, spend upwards of 50 days looking for a place or move farther from family and friends. Read more

A New Way Forward on Trade and Immigration

This article first appeared in the The Orange County Register

President Donald Trump’s policy agenda may seem somewhat incoherent, but his underlying approach — developed, in large part, by now-departed chief strategist Steve Bannon — can be best summarized in one word: nationalism. Read more