On Restructuring

I’m always pleasantly surprised when the New York Times gets a story right, so today, with the government releasing its statistics about high unemployment, I was impressed to see that they published this piece: Crushing Job Losses May Signal Broader Changes. I would agree completely. This is not a temporary recession that will end in two years, at the end of which the jobs will magically reappear.

Instead, we are seeing a second wave of restructuring akin to what we saw in the 1980s. Most of the jobs being shed now are history. Certainly a large number of these are in manufacturing: positions that survived earlier cutbacks being made redundant. But we are also seeing something new: the masters of the universe are in trouble. Financial jobs are coming undone and there is nothing to replace them. From Wall Street to Dubai, these jobs are going away forever and with them, the lavish lifestyles that propped up architecture and design (sorry Mitchell Moss). At least architects and designers have some real skills that can be applied elsewhere, given some reorientation and retraining. It doesn’t look so pretty for those people involved in finance. But make no mistake, Richard Florida’s creative class took this one on the chin. Restructuring is going to hit them hard. Working at the ad agency sure beats handing out parking tickets.

There’s more too. Crime in cities has fallen due to two reasons: the poor have been driven out by neoliberal policies of segregation-via-high-rents, a reasonable abundance of marginal jobs that make crime less attractive, and an escalated police presence. During a protracted recession, the marginal jobs are going to go away while police budgets will shrink, and the result will inevitably be a rising crime rate. Another trigger to higher crime will be the changing demographics in the cities. Some inner-ring suburbs (and more distant places too, welfare cities like Newburgh, NY) will become more dangerous and, lacking a good tax base, will see huge increases in crime and collapses in their school systems. The result will be a return of the poor to the cities, particularly of parents of school age children, hoping to take advantage of better schools and the lure of jobs, few though they may be. But that without the marginal jobs, the crime rate will escalate further and so it goes.

Is there an easy solution to this? No. We have wasted the mad money of the last two decades on starchitecture and jet skis instead of a physical and social infrastructure that would allow us to deal with the realities of the city. It’s going to be a long process of rebuilding and, given the bad politics of both parties (albeit especially the Republicans), the odds are against us.

Delirious though it was, this was a golden age for cities. The last time was probably the 1950s and before that the 1920s. You very well may not see another one like this in your lifetime.    

I’m always pleasantly surprised when the New York Times gets a story right, so today, with the government releasing its statistics about high unemployment, I was impressed to see that they published this piece: Crushing Job Losses May Signal Broader Changes. I would agree completely. This is not a temporary recession that will end in two years, at the end of which the jobs will magically reappear.

Instead, we are seeing a second wave of restructuring akin to what we saw in the 1980s. Most of the jobs being shed now are history. Certainly a large number of these are in manufacturing: positions that survived earlier cutbacks being made redundant. But we are also seeing something new: the masters of the universe are in trouble. Financial jobs are coming undone and there is nothing to replace them. From Wall Street to Dubai, these jobs are going away forever and with them, the lavish lifestyles that propped up architecture and design (sorry Mitchell Moss). At least architects and designers have some real skills that can be applied elsewhere, given some reorientation and retraining. It doesn’t look so pretty for those people involved in finance. But make no mistake, Richard Florida’s creative class took this one on the chin. Restructuring is going to hit them hard. Working at the ad agency sure beats handing out parking tickets.

There’s more too. Crime in cities has fallen due to two reasons: the poor have been driven out by neoliberal policies of segregation-via-high-rents, a reasonable abundance of marginal jobs that make crime less attractive, and an escalated police presence. During a protracted recession, the marginal jobs are going to go away while police budgets will shrink, and the result will inevitably be a rising crime rate. Another trigger to higher crime will be the changing demographics in the cities. Some inner-ring suburbs (and more distant places too, welfare cities like Newburgh, NY) will become more dangerous and, lacking a good tax base, will see huge increases in crime and collapses in their school systems. The result will be a return of the poor to the cities, particularly of parents of school age children, hoping to take advantage of better schools and the lure of jobs, few though they may be. But that without the marginal jobs, the crime rate will escalate further and so it goes.

Is there an easy solution to this? No. We have wasted the mad money of the last two decades on starchitecture and jet skis instead of a physical and social infrastructure that would allow us to deal with the realities of the city. It’s going to be a long process of rebuilding and, given the bad politics of both parties (albeit especially the Republicans), the odds are against us.

Delirious though it was, this was a golden age for cities. The last time was probably the 1950s and before that the 1920s. You very well may not see another one like this in your lifetime.    

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