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Joel Kotkin talks about what happened to social democracy, with Amanda Vanstone

Host: Amanda Vanstone
On: Counterpoint

What happened to social democracy? Joel Kotkin reminds us that it was ‘born of the radical Left in Marx’s own time, social democrats worked, sometimes with remarkable success, to improve the living standards of working people by accommodating the virtues of capitalism’. Now, he says that ‘in its place, we find a kind of progressivism that focuses on gender, sexual preference, race, and climate change’. He takes us through the history of social democracy to today’s progressives and says that ‘arguably the single greatest distinction between social democracy and the new progressivism lies in the word agency. The original social democrats sought “to enhance their economic power” by mobilizing grassroots support. In contrast, today’s “Left” tends to favour rule by experts’. They have a preference for censorship and the political repression of uncooperative political tendencies’. How did this happen and why?

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The Green New Deal will Impoverish America

‘The interesting thing about the Green New Deal is it wasn’t originally a climate thing at all… Do you guys think of it as a climate thing? Because we really think of it as a how-do-you-change-the-entire-economy thing.’ So said Saikat Chakrabarti, former chief of staff for Alexandria Ocasio-Cortez, and generally acknowledged author of the Green New Deal.

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Joel Kotkin Virtual Salon, on the Topic of Neo-Feudalism

Host: Virtual Salon
On: Fieldstead and Company

Fieldstead opened its 2021 salon series with Joel Kotkin, described by the New York Times as “America’s uber-geographer.” Joel is an internationally-recognized authority on global, economic, political, and social trends. His work over the past decade has focused on inequality and class mobility as well as how regions can address these pressing issues. Joel discusses his research findings from his recent book, The Coming Neo-Feudalism: A Warning to the Global Middle Class.

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Joel Kotkin on Menzies Research Centre: Medieval Mindset

Host: Nick Cater
On: The Watercooler Podcast by Menzies Research Centre (Soundcloud)

Joel Kotkin warns that traditional middle class aspirations and values such as family, nationhood and home ownership are under threat from a new class of oligarchs.

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The California Economy vs. Sacramento

Over the past few years California’s plight has taken on mythic proportions — a cautionary tale of progressive woe among conservatives, but a beacon for a future enlightened capitalism among its woke supporters. The current battle over the potential recall of the preening governor, Gavin Newsom, likely will enhance these extreme interpretations on both sides, but likely will not be sufficient to make the changes needed to restore the state’s legendary promise.

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The Death of the American City

When my grandparents migrated to New York from Russia over a century ago, they found a city that was hardly paradise, but one that provided a pathway towards a better life. Life was tough, crowded and always a paycheck from poverty. My relatives were poor, but so was everyone; eventually, they all bought houses or apartments, and entered the middle class. As for crime in their native Brownsville, the home of Murder, Incorporated and other villainous enterprises, it rarely impacted “civilians”; my mother would tell me how a young girl could still walk across Prospect Park without fear of assault.

Today’s urban promise is, however, vastly different — not only in New York, but San Francisco and Los Angeles, London and Paris. No longer cities of aspiration, they are increasingly defined by an almost feudal hierarchy: the rich live well, protected by private security and served by local coffee shops and trendy clubs.

Meanwhile, the working class struggles to pay rent, possesses no demonstrable path to a better life and, as a result, often migrates elsewhere. Crime rates are spiking and homelessness, once an exception, is increasingly widespread. Those very streets once said to be “paved with gold” are now are filled with discarded needles, excrement and graffiti.

Indeed, what we are now witnessing is the decline of former New York Mayor Michael Bloomberg’s description of the city as “a luxury product”. Today, that sense of “luxury” has all but vanished, with modern urban economies promoting class divisions rather than upward mobility. Amid all the hoopla about urban revival, the truth is that entrenched urban poverty in the US — places where 30% or more of the population live below the poverty line — actually grew in the first decade of the new millennium, from 1,100 to 3,100 neighbourhoods.

Even the New York Times admits that, in the past decade, cities have gone from “engines of growth and opportunity” to places where class relations are increasing fixed, with only the upper end of the income spectrum doing well. Gotham’s one percent earns a third of the entire city’s personal income. That’s almost twice the proportion for the rest of the country. But such class disparity is becoming the norm; in the tech haven of San Francisco, which has the worst levels of inequality in California, the top 5% of households earn an average of $808,105 annually, compared with $16,184 for the lowest 20%.

Predictably, those at the bottom of this new feudal structure suffer the most; today, the old saying that “the city air makes one free” all too often means freedom to be poor, to experience endemic homelessness, collapsing public infrastructure and rising crime.

And that was before Covid hit. Already many poor urban residents subsisted on transfer payments or worked in service industries. They were paid, usually poorly, to clean now-empty offices or work in restaurants and hotels. The lockdowns, whether justified or overwrought, have since pummelled these low-income workers; roughly 40% of Americans earning under $40,000 a year lost their jobs last March.

Unlike workers who occupy “the commanding heights” of finance, tech, marketing, and media , these people did not have the option of working from their kitchen tables or moving to suburban locations or smaller cities. Nor could they count on education systems to work their magic; most schools in American inner-city districts, in contrast to many suburbs and smaller cities, remained closed.

All of which meant America’s urban districts were ripe for civil unrest when George Floyd died last May, and these festering conditions exploded into the worst national rioting in decades. Parts of many cities went up in flames, the damage of which was obscured by mainstream media’s mantra of “mostly peaceful protests”. The constant rioting and demonstrations in Portland, once seen as a paragon of new urbanist-led revival, has all but destroyed its downtown, which is now largely bereft of pedestrians.

Read the rest of this piece at UnHerd.

Joel Kotkin is the author of 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. Learn more at joelkotkin.com and follow him on Twitter @joelkotkin.

Photo credit: Christopher Michel via Flickr under CC 2.0 License.

The Collapse of California

If one were to explore the most blessed places on earth, California, my home for a half century, would surely be up there. The state, with its salubrious climate, spectacular scenery, vast natural resources, and entrepreneurial heritage is home to the world’s fifth-largest economy and its still-dominant technological centre. It is also — as some progressives see it — the incubator of “a capitalism we can believe in”.

Perhaps channelling such hyperbole, President Biden recently suggested that he wants to “make America California again”. Yet before leaping on this particular train, he should consider whether the California model may be better seen as a cautionary tale than a roadmap to a better future in the digital age.

The on-the-ground reality — as opposed to that portrayed in the media or popular culture — is more Dickensian than utopian. Rather than the state where dreams are made, in reality California increasingly presents the prototype of a new feudalism fused oddly with a supposedly progressive model in which inequality is growing, not falling.

California now suffers the highest cost-adjusted poverty rate in the country, and the widest gap between middle and upper-middle income earners. It also has one of the nation’s highest Gini ratios, which measures the inequality of wealth distribution from the richest to poorest residents — and the disparity is growing. Incredibly, California’s level of inequality is greater than that of neighboring Mexico, and closer to Central American countries like Guatemala and Honduras than developed nations like Canada and Norway.

It is true that California’s GDP per capita is far higher than these Central American countries, but the state has slowly morphed into a low wage economy. Over the past decade, 80% of the state’s jobs have paid under the median wage — half of which are paid less than $40,000 — and most are in poorly paid personal services or hospitality jobs. Even at some of the state’s most prestigious companies like Google, many lower (and even mid-level) workers live in mobile home parks. Others sleep in their cars.

The state’s dependence on low-wage service workers has been critical in the pandemic, but it now suffers among the highest unemployment rates in the nation, outdone only by tourism-dominated states like Hawaii, Nevada and New Jersey. Los Angeles, the home of Hollywood, now has the highest unemployment rate of the nation’s top ten metropolitan areas, higher even than New York.

But that hasn’t stopped California from portraying itself as a progressive’s paradise, publicly advocating racial and social justice. The state just passed a Racial Justice Act to monitor law enforcement, endorsing reparations (although California was never a slave state) and is working to address “systemic” racism in its classrooms. This “woke” agenda was taken to a new extreme this week when the San Francisco School Board decided to rename 44 schools because they were named after people connected to racism or slavery. The district’s Arts Department, originally known as “VAPA”, also decided to re-brand because “acronyms are a symptom of white supremacy culture”.

Read the rest of this piece at UnHerd.


Joel Kotkin is the author of 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. Learn more at joelkotkin.com and follow him on Twitter @joelkotkin.

Homepage photo: Matthew Woitunski via Wikimedia, under CC 3.0 License.

Elite Democrats Could Destroy the Middle Class if Biden Wins in 2020

It’s been a long time since the Democrats were considered “the party of the people” and the GOP the party of the fat cats. This year Joe Biden and even more so his running mate, Kamala Harris, are raising record sums from the corporate elite, notably the tech giants and their Wall Street allies. These wealthy donors dominate the party, own much of the media, and can manipulate the social-media platforms where a growing proportion of Americans get their news.

Meanwhile, the Republicans find themselves largely castigated in the press and overwhelmed by a torrent of oligarchic wealth at the Senate and local levels. This wealthy oligarchy is not just liberal; many members also support a thorough remaking of our country. Some, like former Twitter CEO Dick Costolo, are so committed to progressivism that, as he said recently, those who don’t get with the program should “face a firing squad.” Currently led by CEO Jack Dorsey, Twitter has gone so far as to block The New York Post’s account after it reported on the unsavory foreign business dealings of Biden’s son Hunter.

If these Democrats win both houses of Congress as well as the White House, things could get far worse for the already beleaguered middle class, which has been rocked by the pandemic, with an estimated 100,000 small firms going out of business. Particularly hard-hit by the recent urban unrest are inner city and minority businesses.

The other big winners have been the professional managerial class, including top levels of the federal bureaucracy, academia, and the mainstream media. These are, for the most part, people who can work from home, or, in some cases, the safety of their country houses. Meanwhile, they have achieved power at a level never before exercised outside of wartime and are as likely to surrender this control as the oligarchs are to give up their money.

If the Democrats win on Election Day, the future for the middle class could be bleak. As a lifelong Democrat, this is not easy to write, but most of the party’s initiatives — such as the Green New Deal — are directly harmful to those in the middle and working classes, who’d be forced to face increased housing and energy prices and fewer upwardly mobile jobs in industries like manufacturing.

A Democratic landslide could prove particularly devastating to owners of small businesses, particularly those in the energy, agriculture and manufacturing sectors, who were all critical to electing Donald Trump and seem likely to follow him again this year, despite the recession caused by the pandemic.

Read the rest of this piece at NYPost.


Joel Kotkin is the author of 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. Learn more at joelkotkin.com and follow him on Twitter @joelkotkin.

Homepage photo credit: ptufts via Flickr under CC 2.0 License.

California’s Woke Hypocrisy

No state wears its multicultural veneer more ostentatiously than California. The Golden State’s leaders believe that they lead a progressive paradise, ushering in what theorists Laura Tyson and Lenny Mendonca call “a new progressive era.” Others see California as deserving of nationhood; it reflects, as a New York Times columnist put it, “the shared values of our increasingly tolerant and pluralistic society.” Read more

Book Interview: Joel Kotkin Speaks on Neo-Feudalism with Financial Sense

By: Chris Sheridan
On: FS Insider

Joel Kotkin, Presidential Fellow in Urban Futures at Chapman University and executive director of the Urban Reform Institute, speaks with FS Insider about his latest book, The Coming of Neo-Feudalism: A Warning to the Global Middle Class.

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