To Reunite America, Liberate Cities to Govern Themselves

By Joel Kotkin and Richard Florida

Even setting aside the dysfunction of our national government, the fact is that no top-down, one-size-fits-all set of policies can address the very different conditions that prevail among communities.

Time magazine’s 2016 Person of the Year was elected president, as the magazine’s headline writer waggishly put it, of the “divided states of America.” Read more

The End of the Asian Era

For the past 40 years, the Pacific Rim has been, if you will, California’s trump card. But now, in the age of President Donald Trump and decelerating globalization, the Asian ascendency may be changing in ways that could be beneficial to our state.

Rather than President Barack Obama’s famous “pivot to Asia,” it now might be more accurate to speak of Asians’ pivot to America. Once feared as a fierce competitor, East Asia is facing an end to its period of relentless growth, and now many interests appear to find that the United States offers a more secure, and potentially lucrative, alternative.

This era reflects profound changes in East Asia’s prospects. They increasingly are coping with many of the demographic, social and economic challenges that have bedeviled the West since the 1970s — competition from cheaper countries, technological obsolescence, a demoralized workforce and diminishing upward mobility. The verve of the late 20th century is being supplanted by the anxieties of the early 21st.

Demographic decline

Forty years ago, overpopulation constituted the big issue facing East Asia. Governments from Singapore to Korea and, most importantly, China, imposed anti-natalist policies, fearing that their economic success would be overcome by a tide of new citizens. Today, East Asia confronts the world’s most stagnant demography.

By 2030, according to the United Nations, Japan, still the world’s third-largest economy, will have more people over 80 than under 15, and, by 2050, it is expected to see its population fall by 15 percent. Many of the other Asian “tigers,” which followed Japan’s model, are saddled with a fertility rate so low that, over the next 35 years, they will join the island nation among the most elderly nations on earth.

East Asia’s demographic crisis will hit critical mass once China, the planet’s second-largest and most dynamic large economy, feels the full impact of its super-low fertility rate. By 2050, China’s population will have a demographic look like ultra-old Japan’s today — but without the higher affluence levels of its Asian neighbor to pay for all of the retirees.

Technology and the challenge of Trumpism

The rise of the Pacific Rim was driven, in large part, by manufacturing growth. Following the model of Japan, Asian countries grew by keeping imports out and building enormous surpluses of manufactured goods. The resulting imbalances were accepted by American administrations even when exacerbated by mercantilist policies directed against our own producers.

The acceptance of such an arrangement ended in 2016 with the election of economic nationalist Donald Trump. But the new trade environment also includes the effective capture of the Democratic Party by elements close to Vermont’s Sen. Bernie Sanders, now America’s most popular politician. Sanders is fiercely skeptical on free trade, and his candidacy even forced Hillary Clinton, a long-time globalist, to back protectionist policies.

Trump’s proposals to match China’s import fees and to hector companies into keeping jobs in the United States represent a huge threat to the mercantilist Asian economic model. This, at a time when new automation technology, cheaper energy and rising wage rates also are persuading Asian producers to shift production to the United States.

Read the entire piece at The Orange County Register.

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.

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