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You are here: Home1 / Articles2 / The Economy

The Coronavirus is Also Spreading a Dark New Era of Neo-Feudalism

May 27, 2020/in Politics, The Economy

Adapted from The Coming of Neo-Feudalism (Encounter Books). 

The COVID-19 pandemic is accelerating the global shift already underway towards a neo-feudal society. With the middle-class economy largely shut down and, in the best-case scenario, in for a long and painful recovery, the population that is barely hanging on is expanding rapidly in America and around the world. In the U.S. alone, the ranks of the poor are projected to increase by as much as 50 percent, to levels not seen in at least a half century. Read more

https://joelkotkin.com/wp-content/uploads/2020/05/kotkin-neo-fuedalism_NG.jpg 480 600 Joel Kotkin /wp-content/uploads/2017/01/jkotkin_logo.png Joel Kotkin2020-05-27 07:30:392020-05-25 20:36:12The Coronavirus is Also Spreading a Dark New Era of Neo-Feudalism

The Future of Residential and Commercial Real Estate

May 21, 2020/in The Economy

What is the future of real estate after Covid-19? Please join Richard Florida, Joel Kotkin, Marshall Toplansky and other leading experts to see where the real estate market is going. We will be discussing issues including the future of office space, retail, affordable housing, inner cities, suburbs and small towns. Read more

https://joelkotkin.com/wp-content/uploads/2020/05/future-of-real-estate-post-covid_4-5.jpg 775 959 JK-admin /wp-content/uploads/2017/01/jkotkin_logo.png JK-admin2020-05-21 09:40:422020-05-27 14:13:52The Future of Residential and Commercial Real Estate

The New Geography of America, Post-Coronavirus

May 21, 2020/in Demographics, The Economy, Urban Affairs

When there is a general change in conditions, it is as if the entire creation had changed, and the whole world altered
—
Ibn Khaldun, 14th Century Arab historian

For a generation, a procession of pundits, public relations aces and speculators have promoted the notion that our future lay in dense — and politically deep-blue — urban centers, largely on the coasts. Just a decade ago, in the midst of the financial crisis,  suburbia’s future seemed perilous Read more

https://joelkotkin.com/wp-content/uploads/2020/05/rural-urban-divide_sam-beebe.jpg 1536 2048 JK-admin /wp-content/uploads/2017/01/jkotkin_logo.png JK-admin2020-05-21 07:27:562020-05-18 10:38:28The New Geography of America, Post-Coronavirus

The Coronavirus Means Millennials Are More Screwed Than Ever

May 20, 2020/in Demographics, The Economy

In the nearly eight years since I first described millennials as “the screwed generation,” things have only worsened for those born between 1982 and 2000—and the coronavirus is now accelerating that slide.

In the midst of a pandemic, millennials are twice as likely to be uninsured as Boomers (PDF). Despite their superior educational credentials, millennials on average earn wages that are 20 percent less than what Baby Boomers made at the same age. Millennials are far less likely to own homes than Boomers were, and those millennials with homes are far more likely to have rich parents. Read more

https://joelkotkin.com/wp-content/uploads/2020/05/generation-turns-socialist.jpg 499 800 Joel Kotkin /wp-content/uploads/2017/01/jkotkin_logo.png Joel Kotkin2020-05-20 07:30:132020-09-23 08:42:14The Coronavirus Means Millennials Are More Screwed Than Ever

Towards a Better Urbanism

May 18, 2020/in The Economy, Urban Affairs

The pandemic has brought panic to the once-confident ranks of urbanists promoting city density. At a time when even the New York Times is noticing that density and transit pose serious health risks for any potential re-opening, such people attack their critics as “anti-urbanist” or “sprawl lovers” or “urban gadflies.” Preferring theology over data, some advocate ever-greater density and crowding in cities and mass transit.

But wishful thinking cannot alter the fact that the pandemic has hit core cities with particular force. The concentration of the worst outbreaks in major urban areas—the New York region alone accounts for more than 40 percent of all US fatalities—is a global phenomenon also seen in Japan, Korea, the United Kingdom, France, Belgium, Italy, and Spain. This has cast a pall on traditional downtown-centric employment, dependent on massive subway systems, crowded apartments, and packed workspaces.

Such places promote what demographer Wendell Cox calls “exposure density.” This is particularly lethal for low-wage workers forced to take packed transit lines from crowded apartments to packed workplaces. It is not surprising that, in the shadow of the pandemic, a recent Harris poll found that almost two-in-five urban residents are considering a move to a less crowded area. The latest consumer survey from the National Association of Realtors also found that households are “looking for larger homes, bigger yards, access to the outdoors and more separation from neighbors.” Even many diehard city residents, suggests the New York Times, are now putting bids on suburban houses further from the city.

The demise of the high-rise office tower

Economic necessity has long defined how cities are organized. In the pre-industrial past, they grew up near coastal ports, rivers, or along trade routes such as the Silk Road. They housed those needed to run the state and maintain trade as well as servicing the luxury needs of the rich. Later, the industrial revolution forced cities to grow radically, as manufacturers depended on easy access to vast numbers of workers, who often suffered from severe social and health effects as documented by Friedrich Engels in his influential book, The Condition of the Working Class in England.

The past 50 years has seen the demise of the industrial city as production has shifted to developing countries or more remote locations, and the rise of an urban economy based on elite “producer services.” These industries, including finance, media, software, accounting, and law, depend on the migration of talent from elsewhere, both domestically and abroad. In modern times, the most prominent physical expression of urban greatness—once cathedrals or great public works—has been the office building. This same pattern has extended outside the West, notably in the Middle East and East Asia, which now boast most of the world’s tallest buildings.

But this configuration is now faced with the challenge of “social distancing.” Before the pandemic, companies coped with high urban rents by using far less space per new job—down from 175 square feet of space per new employee in the 1990s to 125 in the late 2000s and barely 50 square feet today. Social distancing requirements will force employers to offer more space per employee, which will in turn see their costs rise. Elevator traffic will slow, and private offices, once considered passé, may soon be in demand, as executives seek greater isolation from their employees.

Read the rest of this piece at Quillette.

Joel Kotkin is the author of the just-released book The Coming of Neo-Feudalism: A Warning to the Global Middle Class. He is the Presidential Fellow in Urban Futures at Chapman University and Executive Director for Urban Reform Institute — formerly the Center for Opportunity Urbanism. Learn more at joelkotkin.com and follow him on Twitter @joelkotkin

Marshall Toplansky is a clinical assistant professor of management science at Chapman University’s Argyros School of Business and Economics. He is a research fellow in the school’s Hoag Center for Real Estate and Finance and is formerly managing director of KPMG’s Lighthouse Center for Advanced Data and Analytics.

Photo credit: Sean Pollock via Unsplash.

https://joelkotkin.com/wp-content/uploads/2020/05/sean-pollock-PhYq704ffdA-unsplash.jpg 1280 1920 Joel Kotkin and Marshall Toplansky /wp-content/uploads/2017/01/jkotkin_logo.png Joel Kotkin and Marshall Toplansky2020-05-18 07:21:302020-05-17 10:22:47Towards a Better Urbanism

Hygienic Fascism: Turning the World Into a ‘Safe Space’ — But at What Cost?

May 12, 2020/in Politics, The Economy

Author Aldous Huxley once said, “A thoroughly scientific dictatorship will never be overthrown.”

Even as we try to battle the COVID-19 pestilence, we may be contracting a more dangerous virus — hygienic fascism. This involves a process when our political leaders defer to a handful of “experts,” amid what Dr. Joseph Ladopo, an associate professor at the UCLA School of Medicine, describes as an atmosphere of “COVID-19-induced terror.”

Ideologically, hygienic fascism is neither right nor left, nor is it simply a matter of taking necessary precautions. It is about imposing, over a long period of time, highly draconian regulations based on certain assumptions about public health. In large part, it regards science not so much as a search for knowledge but as revealed “truth” with definitive “answers.” Anyone opposed to the conventional stratagem, including recognized professionals, are largely banished as mindless Trumpistas, ignoramuses, or worse. Experience may show that debate and diversity of choices serve the public’s health and general well-being better than unchallenged rule by a few, largely unaccountable individuals.

Even some non-Trumpians — like Elon Musk — see this as less an adherence to scientific standards than a “fascist” attempt to impose often impossible conditions on society and the economy, and without popular recourse. That these orders are often issued by the executive, and in the vast majority of states without legislative recourse, certainly follows an authoritarian pattern.

Big Brother, the ‘Great Helmsman’ and us

The degree of social control being proposed often reveals staggering tunnel vision. Former Vice President Joe Biden’s adviser, Dr. Ezekiel Emmanuel, suggests that eradication of the virus will require a year or even 18 months of lockdown policies. This likely would catapult an already steep recession into something approaching a depression. Scientists and academics, it appears, may be less vulnerable to such a policy than, say, hotel workers, retail clerks or small business owners.

Read the rest of this piece at The Hill.

Joel Kotkin is the author of the just-released book The Coming of Neo-Feudalism: A Warning to the Global Middle Class. He is the Presidential Fellow in Urban Futures at Chapman University and Executive Director for Urban Reform Institute — formerly the Center for Opportunity Urbanism. Learn more at joelkotkin.com and follow him on Twitter @joelkotkin

Homepage photo credit: Christopher Michel via Flickr under CC 2.0 License.

https://joelkotkin.com/wp-content/uploads/2020/05/michel_life-under-quarantine.jpg 533 799 Joel Kotkin /wp-content/uploads/2017/01/jkotkin_logo.png Joel Kotkin2020-05-12 07:16:162020-05-12 09:35:13Hygienic Fascism: Turning the World Into a ‘Safe Space’ — But at What Cost?

One Nation, Under Lockdown, Divided by Pandemic

May 11, 2020/in Demographics, Politics, The Economy

The last thing this polarized Republic needs is, well, more polarization, but that is what we are contracting from the pandemic. Americans, irrespective of region, broadly want the same things, such as safety, a return to normalcy, and an end to dependence on China for medical supplies, but they differ in the depth of their experiences with the pandemic.

Rather than rallying the nation, COVID-19 has amplified every fissure in this society from class to race, but perhaps most of all regarding geography. This reflects, in large part, the different experiences felt in various localities and the differences in how economies function from region to region.

Read more

https://joelkotkin.com/wp-content/uploads/2020/05/COVID-19map_USA.png 400 813 Joel Kotkin /wp-content/uploads/2017/01/jkotkin_logo.png Joel Kotkin2020-05-11 07:30:482020-09-23 08:43:18One Nation, Under Lockdown, Divided by Pandemic

The Pandemic Road to Serfdom

May 5, 2020/in Politics, The Economy

Even before the outbreak of the Covid-19 pandemic, America, like most higher-income countries, was already heading toward a neo-feudal future: massive inequality, ever-greater concentrations of power, and increasingly widespread embrace of a uniform (albeit secular) religion. The pandemic, all too reminiscent of the great plagues of the Middle Ages, seems destined to accelerate this process.

Read more

https://joelkotkin.com/wp-content/uploads/2020/05/Les_Tres_Riches_Heures_du_duc_de_Berry_february.jpg 640 800 Joel Kotkin /wp-content/uploads/2017/01/jkotkin_logo.png Joel Kotkin2020-05-05 07:30:042020-05-12 09:36:21The Pandemic Road to Serfdom

Letter from Los Angeles: The Death of Small Business is a Tragedy for Jewish Community and Democracy

May 4, 2020/in California, The Economy, Urban Affairs

“Small-scale commercial production is, every moment of every day, giving birth spontaneously to capitalism and the bourgeoisie…wherever there is small business and freedom of trade, capitalism appears.”— V.I. Lenin

A great connoisseur as well as sworn enemy of the free market, Vladimir Lenin might smile a bit if he witnessed what is now happening to small businesses in the current Covid-19 pandemic. Even before, America was experiencing falling rates of business formation as well as declining homeownership, particularly among the young. The share of GDP represented by small firms had dropped from 50 to 45% since the 1990s.

Read more

https://joelkotkin.com/wp-content/uploads/2020/04/1933-macys-window.jpg 400 495 Joel Kotkin /wp-content/uploads/2017/01/jkotkin_logo.png Joel Kotkin2020-05-04 07:30:072020-05-12 09:37:02Letter from Los Angeles: The Death of Small Business is a Tragedy for Jewish Community and Democracy

Triumph of the Woke Oligarchs

April 29, 2020/in California, Politics, Rural Policy, The Economy

Like the rest of the country, although far less than New York, California is suffering through the Covid-19 crisis. But in California, the pandemic seems likely to give the state’s political and corporate elites a new license to increase their dominion while continuing to keep the middle and working classes down.

Perhaps nothing spells the triumph of California’s progressive oligarchy more than Governor Gavin Newsom’s decision to off-load the state’s recovery strategy to a task force co-chaired by hedge-fund billionaire Tom Steyer. A recently failed presidential candidate, Steyer stands as a progressive funder. He is as zealous as he is rich. Steyer sometimes even found the policies adopted by climate-obsessed former governor Jerry Brown not extreme enough for his tastes. Read more

https://joelkotkin.com/wp-content/uploads/2020/04/Tom_Steyer_by_Gage_Skidmore.jpg 1066 1599 Joel Kotkin /wp-content/uploads/2017/01/jkotkin_logo.png Joel Kotkin2020-04-29 07:14:032020-07-17 08:58:40Triumph of the Woke Oligarchs
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