The world is spiky
I’m working my way through Dr. Richard Florida’s new book, Who’s Your City? Many of you may be familiar with Dr. Florida’s previous books, The Rise of the Creative Class and The Flight of the Creative Class. I typically recommend one or both (along with some other texts) to school leaders who wish to learn more about global workforce changes.
Dr. Florida notes that the world isn’t as ‘flat’ as we have been led to believe. Instead, the world is rather spiky. As he describes in his opening chapter (and in his excellent article in The Atlantic Monthly), half of the world’s population now lives in urban areas, up from about 3 percent two hundred years ago. Indeed, in industrialized countries, this percentage is around 75%, not 50%. This is societal shift on a massive scale.
So what? Why does it matter that the world is spiky rather than flat? Well, as Florida describes, often it actually does matter where you live (unlike what Friedman sometimes says in The World Is Flat). For example, we are seeing the emergence of ‘mega-regions,’ areas like the Boston-New York-Washington, DC corridor or the Amsterdam-Antwerp-Brussel region that not only are the ‘powerhouses behind national economies; they’re behind the global economy as well’ (p. 24). There are only a couple of dozen ‘places worldwide that generate significant innovation. These regions have ecosystems of leading-edge universities, high-powered companies, flexible labor markets, and venture capital that are attuned to the demands of commercial innovation’ (p. 27).
Creative people cluster not simply because they like to be around one another or prefer cosmopolitan centers with lots of amenities (though both things tend to be true). They cluster because density brings such powerful productivity advantages, economies of scale, and knowledge spillovers. Four kinds of places make up the landscape of our spiky world: first, the tallest spikes that attract global talent, generate knowledge, and produce the lion's share of global innovation. Second are the emerging peaks that use established ideas, often imported, to produce goods and services. Some of these cities, such as Dublin and Seoul, are transitioning into places that generate innovation, but most, from Guadalajara to Shanghai, function primarily as the manufacturing and service centers of the 21st-century global economy. The two remaining types of places are being left behind: third-world megacities distinguished by large-scale "global slums," with high levels of social and political unrest and little meaningful economic activity; and the huge valleys of the spiky world, rural areas with little concentration of population or economic activity. The main difference between now and a couple of decades ago is that the economic and social distance between the peaks has gotten smaller. People in spiky places are often more connected to one another, even from half a world away, than they are to people in their own backyards.
We have to note the clustering effects of the global economy (the ‘centrifugal force’), not just the spread (the ‘centripetal force’). Florida says in his new book that ‘the reality is that globalization has two sides. The first and more obvious one is the geographic spread of routine economic funtions such as simple manufacturing or service work (for example, making or answering telephone calls). The second, less obvious side to globalization is the tendency for higher-level economic activities such as innovation, design, finance, and media to cluster in a relatively small number of locations‘ (p. 19).
I just moved to Ames, Iowa. The state capital, Des Moines, is a small creative center just 25 minutes away. Given his methodology, I’m guessing that Ames and Iowa State University are included in Dr. Florida’s statistics on the Des Moines region. Of all medium-sized U.S. regions (0.5 to 1 million people), Dr. Florida ranks Des Moines as the #1 ‘Best Buy’ region for families with children and #2 for professionals age 29–44. That’s cool for me and my family and my professional colleagues. But the reality is that we’re surrounded by fields. Over 90% of the state is corn or soybean fields (or hog farms).
So what do I tell the rural school leaders with whom I’ll be working? They’re already in communities that are struggling to survive. Do I tell them that, because they live in Florida’s ‘huge valleys,’ that their schools and communities are basically doomed? Or is there a way for them to still be economically productive and viable?
Comments
I live and work in the "mega-region" Amsterdam-Antwerpen-Brussels.
What you hear and read in the debate here in The Netherlands is the point that we should "connect" those backyards with the spikey places like Amsterdam, Rotterdam, The Hague. There are major new infrastructural projects planned (roads, railways). And there is a lot of political activity to support the economic development of these backyards. If you drive along the highways in The Netherlands, you'll see these new "creative areas" where certain groups of companies and service providers are clustering.
Of course, Holland is a small country and a region in Europe itself. But even on this smaller scale, you can see the trends Richard Florida describes.
Politicians are aware that you also, and maybe first, need to invest in a social and cultural environment and infrastructure to attract new economic activities.
The message of these politicians is... "make it attractive for the creative class to buy a house in those backyards." If there is a solid infrastructure of schools, cultural activities and social life, people don't mind to travel each day to these spikey places. A major problem of course is the traffic jam.
The key is: invest in social and cultural infrastructure.
The national and local governments have a major role to play here.
These backyards should "market" their advantages (nice surroundings, no crime, clean cities, etc.). If they do that in a smart way, the creative class will move to these areas. At least, this is happening in The Netherlands in some areas. There are a lot of highly educated people who work in Amsterdam, The Hague or Rotterdam, but do not live in these cities, but in one of these so-called "backyards". Why? They prefer to live in those smaller, often historical cities. It's safer, more comfortable, better for their children, they think.
I'm not that pessimistic for the rural school communities here in Holland. Of course, they have their problems as well, but if they partner with their local governments and "market" their city and region together, they could attract enough highly educated creative class people.
The same may apply in bigger geographical areas, like some states in the United States. Your success as an area depends on how you "market" your area, and on a smaller scale, your school.
Here in Holland, parents bring their children to schools miles away from their homes each day, because these schools have marketed their educational ideas very well. They target specific groups, connect with them.
If schoolleaders understand the marketing of their product, "place", where your school is located, becomes less an issue.
Posted by: Herbert Verweij | March 13, 2008 5:05 PM
Don’t believe one optimistic word from any public figure about the economy or humanity in general. They are all part of the problem. Its like a game of Monopoly. In America, the richest 1% now hold 1/2 OF ALL UNITED STATES WEALTH. Unlike ‘lesser’ estimates, this includes all stocks, bonds, cash, and material assets held by America’s richest 1%. Even that filthy pig Oprah acknowledged that it was at about 50% in 2006. Naturally, she put her own ‘humanitarian’ spin on it. Calling attention to her own ‘good will’. WHAT A DISGUSTING HYPOCRITE SLOB. THE RICHEST 1% HAVE LITERALLY MADE WORLD PROSPERITY ABSOLUTELY IMPOSSIBLE. Don’t fall for any of their ‘humanitarian’ CRAP. ITS A SHAM. THESE PEOPLE ARE CAUSING THE SAME PROBLEMS THEY PRETEND TO CARE ABOUT. Ask any professor of economics. Money does not grow on trees. The government can’t just print up more on a whim. At any given time, there is a relative limit to the wealth within ANY economy of ANY size. So when too much wealth accumulates at the top, the middle class slip further into debt and the lower class further into poverty. A similar rule applies worldwide. The world’s richest 1% now own over 40% of ALL WORLD WEALTH. This is EVEN AFTER you account for all of this ‘good will’ ‘humanitarian’ BS from celebrities and executives. ITS A SHAM. As they get richer and richer, less wealth is left circulating beneath them. This is the single greatest underlying cause for the current US recession. The middle class can no longer afford to sustain their share of the economy. Their wealth has been gradually transfered to the richest 1%. One way or another, we suffer because of their incredible greed. We are talking about TRILLIONS of dollars. Transfered FROM US TO THEM. Over a period of about 27 years. Thats Reaganomics for you. The wealth does not ‘trickle down’ as we were told it would. It just accumulates at the top. Shrinking the middle class and expanding the lower class. Causing a domino effect of socio-economic problems. But the rich will never stop. They just keep getting richer. Leaving even less of the pie for the other 99% of us to share. At the same time, they throw back a few tax deductible crumbs and call themselves ‘humanitarians’. Cashing in on the PR and getting even richer the following year. IT CAN’T WORK THIS WAY. Their bogus efforts to make the world a better place can not possibly succeed. Any 'humanitarian' progress made in one area will be lost in another. EVERY SINGLE TIME. IT ABSOLUTELY CAN NOT WORK THIS WAY. This is going to end just like a game of Monopoly. The current US recession will drag on for years and lead into the worst US depression of all time. The richest 1% will live like royalty while the rest of us fight over jobs, food, and gasoline. So don’t fall for any of this PR CRAP from Hollywood, Pro Sports, and Wall Street PIGS. ITS A SHAM. Remember: They are filthy rich EVEN AFTER their tax deductible contributions. Greedy pigs. Now, we are headed for the worst economic and cultural crisis of all time. Crime, poverty, and suicide will skyrocket. SEND A “THANK YOU” NOTE TO YOUR FAVORITE MILLIONAIRE. ITS THEIR FAULT. I’m not discounting other factors like China, sub-prime, or gas prices. But all of those factors combined still pale in comparison to that HUGE transfer of wealth to the rich. Anyway, those other factors are all related and further aggrivated because of GREED. If it weren’t for the OBSCENE distribution of wealth within our country, there never would have been such a market for sub-prime to begin with. Which by the way, was another trick whipped up by greedy bankers and executives. IT MAKES THEM RICHER. The credit industry has been ENDORSED by people like Oprah, Ellen, Dr Phil, and many other celebrities. IT MAKES THEM RICHER. Now, there are commercial ties between nearly every industry and every public figure. IT MAKES THEM RICHER. So don’t fall for their ‘good will’ BS. ITS A LIE. If you fall for it, then you’re a fool. If you see any real difference between the moral character of a celebrity, politician, attorney, or executive, then you’re a fool.. WAKE UP PEOPLE. THEIR GOAL IS TO WIN THE GAME. The 1% club will always say or do whatever it takes to get as rich as possible. Without the slightest regard for anything or anyone but themselves. Reaganomics. Their idea. Loans from China. Their idea. NAFTA. Their idea. Outsourcing. Their idea. Sub-prime. Their idea. High energy prices. Their idea. The commercial lobbyist. Their idea. The multi-million dollar lawsuit. Their idea. The multi-million dollar endorsement. Their idea. $200 cell phone bills. Their idea. $200 basketball shoes. Their idea. $30 late fees. Their idea. $30 NSF fees. Their idea. $20 DVDs. Their idea. Subliminal advertising. Their idea. Brainwash plots on TV. Their idea. Prozac, Zanex, Vioxx, and Celebrex. Their idea. The MASSIVE campaign to turn every American into a brainwashed, credit card, pharmaceutical, love-sick, couch potatoe, celebrity junkie. Their idea. All of the above shrink the middle class, concentrate the world’s wealth and resources, create a dominoe effect of socio-economic problems, and wreak havok on society. All of which have been CREATED AND ENDORSED by celebrities, athletes, executives, entrepreneurs, attorneys, and politicians. IT MAKES THEM RICHER. So don’t fall for any of their ‘good will’ ‘humanitarian’ BS. ITS A SHAM. NOTHING BUT TAX DEDUCTIBLE PR CRAP. In many cases, the 'charitable' contribution is almost entirely offset.. Not to mention the opportunity to plug their name, image, product, and 'good will' all at once. IT MAKES THEM RICHER. These filthy pigs even have the nerve to throw a fit and spin up a misleading defense with regard to 'tax revenue'. ITS A SHAM. THEY SCREWED UP THE EQUATION TO BEGIN WITH. ITS THEIR OWN DAMN FAULT. If the middle and lower classes had a greater share of the pie, they could easily cover a greater share of the federal tax revenue. They are held down in many ways because of greed. Wages remain stagnant for millions because the executives, celebrities, athletes, attorneys, and entrepreneurs, are paid millions. They over-sell, over-charge, under-pay, outsource, cut jobs, and benefits to increase their bottom line. As their profits rise, so do the stock values. Which are owned primarily by the richest 5%. As more United States wealth rises to the top, the middle and lower classes inevitably suffer. This reduces the potential tax reveue drawn from those brackets. At the same time, it wreaks havok on middle and lower class communities and increases the need for financial aid. Not to mention the spike in crime because of it. There is a dominoe effect to consider. So when people forgive the rich for all of the above and then praise them for paying a greater share of the FEDERAL income taxes, its like nails on a chalk board. If these filthy pigs want to be over-paid, then they should be over-taxed as well. Remember: The richest 1% STILL own 1/2 of all United States wealth EVEN AFTER taxes, charity, and PR CRAP. A similar rule applies worldwide. There is nothing anyone can say to justify that. Anyway, there is usually a higher state and local burden on the middle and lower classes. They get little or nothing without a local tax increase. Otherwise, the red inks flows. Service cuts and lay-offs follow. Again, because of the OBSCENE distribution of bottom line wealth in this country. I can not accept any theory that our economy would suffer in any way with a more reasonable distribution of wealth. Afterall, it was more reasonable 30 years ago. Before Reaganomics came along. Before GREED became such an epidemic. Before we had an army of over-paid executives, celebrities, athletes, attorneys, investors, entrepreneurs, developers, and sold-out politicians to kiss their asses. As a nation, we were in much better shape. Lower crime rate, more widespread prosperity, stable job market, free and clear assets, lower deficit, ect. Our economy as a whole was much more stable and prosperous for the majority. WITHOUT LOANS FROM CHINA. Now, we have a more obscene distribution of bottom line wealth than ever before. We have a sold-out government, crumbling infrastructure, energy crisis, home forclosure epidemic, 13 figure national deficit, and 12 figure annual shortfall. The cost of living is higher than ever before. Most people can't even afford basic health care. ALL BECAUSE OF GREED. I really don't blame the 2nd -5th percentiles. No economy could ever function without some reasonable scale of personal wealth and income. But it can't be allowed to run wild like a mad dog. ALBERT EINSTEIN TRIED TO MAKE PEOPLE UNDERSTAND. UNBRIDLED CAPITALISM ABSOLUTELY CAN NOT WORK. Bottom line: The richest 1% will soon tank the largest economy in the world. It will be like nothing we’ve ever seen before. and thats just the beginning. Greed will eventually tank every major economy in the world. Causing millions to suffer and die. Oprah, Angelina, Brad, Bono, and Bill are not part of the solution. They are part of the problem. THERE IS NO SUCH THING AS A MULTI-MILLIONAIRE HUMANITARIAN. EXTREME WEALTH MAKES WORLD PROSPERITY ABSOLUTELY IMPOSSIBLE. WITHOUT WORLD PROSPERITY, THERE WILL NEVER BE WORLD PEACE OR ANYTHING EVEN CLOSE. GREED KILLS. IT WILL BE OUR DOWNFALL. Of course, the rich will throw a fit and call me a madman. Of course, they will jump to small minded conclusions about 'jealousy', 'envy', or 'socialism'. Of course, their ignorant fans will do the same. You have to expect that. But I speak the truth. If you don’t believe me, then copy this entry and run it by any professor of economics or socio-economics. Then tell a friend. Call the local radio station. Re-post this entry or put it in your own words. Be one of the first to predict the worst economic and cultural crisis of all time and explain its cause. WE ARE IN BIG TROUBLE.
Posted by: Truxter | March 13, 2008 11:44 PM