Thursday, October 3, 2013

How the Crash Will Reshape America critique


Richard Florida, the author of “How the Crash Will Reshape America,” writes about the social and economic effects of the recent fiscal recessions. Published in The Atlantic magazine in 2009, the article creates feelings of reflection and hope for America’s future. Florida starts out with a short background about his experience with the Great Depression: the recession of all recessions. His father grew up during this time and suffered greatly as Florida, his mother and six siblings had to work and combine their income in order to make sufficient funds. Such a lifestyle represented that of most other Americans during these times filled with suffering and distress.

This article was published in the hype of the 2008 stock market crash. While Florida remains hopeful about the future toward the end of the article, he first notes, “No place in the Unite States is likely to escape a long and deep depression.” Notice his use of the word “escape.” I feel that his main focus evolves into the methods through which the country can survive the detrimental impacts, as they are, as he clearly describes, inevitable. According to Florida, the crisis will hit hardest in the interior of the country (factory towns and the Sun and Rust Belts), as these modest areas and manufacturing regions are least associated with finance. They do not have the capitol to support as many jobs and, simultaneously, property values decrease.

Large city-centers like New York City have interesting dynamics as a result of the fiscal crisis. The reasons New York survived are not very obvious (at least they weren’t to me). As Florida says, this mega-region is not solely dependent on the monetary job market. In fact, financial positions make up “only eight percent of New York area jobs.” Because this city is so heavily populated, there are people with a wide range of skills and areas of interest. New York City is also home to designers, musicians, artists, film directors, etc. Consequently, these citizens make up a diverse and innovative collection of people. That being said, one of Florida’s main thesis points is the need for innovation and diversity in our American society. Jane Jacobs even labels diverse economic and social structures as engines of growth.

From what I have gathered, Florida’s main focus revolves around letting go of the old fashioned American Dream and embracing a new future reliant on a more innovative, resourceful perspective. For instance, Florida presents the real estate industry in a new light. He proposes part of the solution as an end to the focus on homeownership. Renting a home/apartment is not only more economically efficient but also does not necessarily bring undesirable social status. While many Americans feel homeownership is a key to the American dream, a recent study by Grace Wong reveals that “homeowners are no happier than renters, nor do they report lower levels of stress or higher levels of self-esteem.” Another solution he presets is the need for growth and population redistribution. During the time the article was written, there was a large need for an efficient circulation of people, goods, and ideas. In effect, society would be making mega-regions/ money-centers more accessible to all classes, not only the elite.

Upon further research, I found this article on The Atlantic website. As an urban studies theorist with a focus on social and economic theory, it is not surprising that the comments on his article vary in opinion. Most think it is a well-done, accurate description of and consequences from the 2008 crash. That being said, some are critical of Florida’s outlook and criticize him for his lack of consideration to the role of government throughout the whole process. All in all, I think the author does a great job addressing the much-needed improvements in American society that were illuminated by the economic crash. I also think his predictions of the future economic state are very realistic, as most of them are either taking place or beginning to take place today. 

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