February 14, 2004

FLORIDA SWAMPED (via Tom Corcoran):

Dr. Florida's Fever Swamps (Shawn Macomber, 2/12/2004, American Spectator)

Economist Richard Florida sees something more than a good flick when watching the wildly popular Lord of the Rings films. Specifically, he sees the economic demise of the United States. [...]

Likewise, when musician Youssou N'Dour canceled his U.S. tour last spring to protest the invasion of Iraq, it signaled the end of the American music industry. [...]

The Carnegie Mellon professor of economic development became a hero to gays, dirty hippies, and extreme sports types everywhere a few years ago when he declared that the "creative class" was the real engine of the American economy, not those stodgy "older sectors," a catch-all term to describe the blue collar manufacturing industries.

He set out this thesis in his best-selling 2003 book The Rise of the Creative Class. Florida created a series of non-traditional "economic indicators," including the "Bohemian" and "Gay" indexes, that are relevant to that by now well-worn phrase, the "new economy."

Instead of sifting economic trends, Florida used the acres of print to answer such age old questions as: "Why cities without gays and rock bands are losing the economic development race." The Rise of the Creative Class ranked locales on "coolness" as measured by the vitality of the backbone of the new economy: artists and homosexuals.

The somewhat ham-fisted thesis of his book was that "knowledge workers" only settle in countries and cities that are "tolerant, diverse and open to creativity." Thus, tax cuts don't create jobs, or not the kind of jobs that matter. The super-cool creative workforce doesn't care about income taxes. So the path to economic prosperity is simple. The federal government should subsidize "fun" -- i.e., bike paths, indie rock bands, coffee shops, and art galleries. [...]

Of course, economics isn't called the dismal science for nothing. When Florida's colleagues finally got around to looking at the numbers, they found him to be wrong on virtually every particular.

In a sledgehammer of an article in the American Enterprise, Joel Kotkin demolished the case against the creative class thesis. Historically, the economies of Florida's vaunted top ten "creative" cities have struggled behind the national economy by several percentage points. More to the point, those cities dismissed as "least creative," have grown 60 percent faster than the "most creative" ones over the last 20 years.


Who among us wasn't inconsolable when Youssou N'Dour cancelled his tour, but the idea that the success of The Lord of the Rings demonstrates that the future lies with the values of gay Bohemia, rather than testifying to the enduring strength of traditional Judeo-Christian values, borders on the delusional. It need only be pointed out that the place where "culture" most closely resembles Mr. Florida's ideal is in the dying states of Western Europe in order to see how silly his thesis is.


MORE:
Paths to Prosperity (Joel Kotkin, July/August 2003, American Enterprise)

Today, economic growth is more likely to be found in areas dismissed by Richard Florida and his media supporters as barely worth living in. It’s not likely that this correction will be trumpeted with anything like the fervor of Florida’s original claims, however, because many journalists prefer his original perspective. In fact, a whole industry has arisen over the last decade to promote the premise that economic growth directly follows “quality of life” factors that appeal to singles, young people, homosexuals, sophistos, and trendoids. What really matters are dance clubs, cool restaurants, art museums, and hip shopping districts, many writers agreed.

If you go to today’s new growth hot-spots, however, you will find few of those supposed prerequisites of prosperity. Instead, in a land like the Inland Empire you will see single-family homes, churches, satellite dishes, and malls. These are places where households, not singles, dominate the economy. These are cultures attractive to ordinary families. And therefore to business people.

Family is the key factor here. The places high on Florida’s “Creativity Index,” such as San Francisco, Boston, and Seattle, also tend to be the parts of the U.S. with the fewest number of children per capita. In contrast, thriving places like McAllen, Boise, Fresno, Fort Worth, Provo, and the Inland Empire have among the highest percentages of children in the nation. And the reality is that family strength has a much longer and deeper track record as an indicator of economic health and entrepreneurial motivation than homosexuality or bohemianism.

America’s new growth spots tend to be economies centered around basic industries like construction, distribution, retail, and low-tech manufacturing. This can be seen in the relative success of such diverse economies as Portland, Maine; Sioux Falls, South Dakota; and McAllen, Texas. Some tech centers—like Boise, Raleigh, Austin, and Provo—also rank as family-friendly locales, with well-above-average rates of married-with-children households.

In addition to being much more family friendly places, today’s growth regions tend to differ from fashionable but economically lagging parts of the Northeast and coastal California in another way: They have different attitudes toward business and enterprising. Places like the Inland Empire are very friendly toward founders and builders of business establishments. In these places, expansion is regarded by citizens, local government, and regional media much more as a good thing than as a source of problems. That attitude is reversed in many more culturally liberal regions—and in the national media.

Posted by Orrin Judd at February 14, 2004 7:31 PM
Comments

"In the industry most symbolic of America's international economic and cultural might, film, the greatest single project in recent cinematic history was internationally funded and crafted by the best filmmakers around the world, but not in Hollywood,"

Oh, he's right! Jackson cut out the scene in the novel where the Orcs wage a ferocious battle up and down Santa Monica Blvd.

And naturally, Hollywood had absoutely no financial investment in the film either.

What an idiot.

Posted by: Karl at February 14, 2004 8:38 PM

What a load of self-serving delusion. He's drawing a very non-economic linkage between creativity and his own socio-political values, and so is filtering out the creativity that is transforming industries across the American economy.

I am a knowledge worker, I live in Minnesota and work in the financial services industry. Totally off of his radar, but we are constantly pressed to find innovative technological and business solutions to remain competetive. And our business is booming. We have no problem finding 'high end' immigrants to work for us, from India, Pakistan, Russia, Australia, Argentia, you name it. And he is worried about the economic fallout of a cancelled concert tour by Youssou N'Dour? Can someone even explain to me who this guy is?

Posted by: Robert Duquette at February 14, 2004 11:26 PM

I did some more reading at Florida's website. There are a couple of angles to this movement. One is that they seem to believe that they have singlehandedly discovered a new principle in econoomics, that innovation and growth are generated by creativity and risk taking. It is a firm grasp of the obvious masquerading as insight.
Noone is arguing against creativity.

Second is the realization that other countries are starting to beat America at its own game by luring creative immigrants to their shores to help drive innovation and growth there. This is a good thing, the world is catching up with us, the brain drain that has fed us for so long is starting to even out. So we need to be more competetive.

He believes, however, that somehow all of our political, social and national security/foreign policy decisions need to be sublimated to the priority of making liberally minded internationalist immigrants comfortable with our political climate. An acceptable option when that political climate co-incides with your own views. It's a Tranzi agenda.

Third, if creative bobo knowledge workers want access to nightclubs and coffee-houses, there is nothing stopping the free market from providing these amenities. The Florida agenda, though maybe not explicitly so, seems to point toward city, state and local governments to provide or subsidize these desired amenities. A link from his site to a document called the "Memphis Manifesto" a platitude-filled action plan which is seemingly mostly about city-planning initiatives such as parks and schools, has some more troubling nuggests in it, such as:

"8) Remove barriers to creativity, such as
mediocrity, intolerance, disconnectedness,
sprawl, poverty, bad schools, exclusivity, and
social and environmental degradation.
...
10) Ensure that every person, especially children,
has the right to creativity. The highest
quality lifelong education is critical to developingand retaining creative individuals"

I get a whiff of social engineering here. What will constitute "mediocrity" and "intolerance" in their eyes? Disconnectedness? Is this a call for nanny-state communitarianism? What will qualify under "social degradation"?

Beware phrases such as "ensure children have a right to creativity". That right will no doubt come at the expense of parental authority.

Posted by: Robert Duquette at February 15, 2004 12:18 AM

"And he is worried about the economic fallout of a cancelled concert tour by Youssou N'Dour? Can someone even explain to me who this guy is"

Robert,

He's a Senegal singer that Peter Gabriel discovered in the mid-1980s and signed to his record label of multiculti "world music" artists. He does the high, piercing vocals near the end of Gabriel's "In Your Eyes", which was on his multimillion-selling album, "So" (the album that had "Sledgehammer" on it).

Apparently, he's quite a star in Senegal, and I guess because of Gabriel's stamp of approval, we should all be following his career breathlessly.

Ed

Posted by: Ed Driscoll at February 15, 2004 2:47 AM

It might be illuminating to explore the socio-economic achievements of those countries where some of the most extraordinarily creative conspiracy theories are held as gospel truth....

Posted by: Barry Meislin at February 15, 2004 3:07 AM

Three quarters of Americans believe JFK was the victim of a conspiracy.

Posted by: oj at February 15, 2004 9:38 AM
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