- Joined
- Sep 25, 2007
- Messages
- 201
Hi all,
An article from the November 29th edition of the Globe and Mail (Focus). Excerpts:
While few economists believe the global economy will fall into a 1930s-style collapse, a similar approach to the current financial crisis may not work as well now for a simple reason: Today`s economy is largely driven by the creative industries that have grown up over the past two or three decades. The overall picture now bears more resemblance to the early industrial economy of the mid-to-late-19th century - when industries such as automobiles, chemicals and electronics were just emerging - than to the relatively mature industrial economy of the 1930s.
Restarting economic growth this time around will require a new social and economic framework that is in line with the new idea-driven economy.
The trouble is: We remain trapped in the mental models of the old industrial economy.
Our reliance on single-family homeownership is a product of the past 50 years - and the experiment has outlived its usefulness. Not only is it now readily apparent that not everyone should own a home, and that the mortgage system is a big part of what got us into the current financial mess, but homeownership also ties people to locations, making it harder for them to move to where work is. Homeownership made sense when most people had one job and lived in the same city for life. But it makes less sense when people change jobs frequently and have to relocate to find new work.
Government can also encourage a shift from ownership toward flexible rental housing.
Only by catalyzing such a wholesale shift in our underlying socio-economic system - and thereby unleashing the massive innovative and productive potential of our time - can government investment restore our economy.
http://www.theglobeandmail.com/servlet/sto...richard+florida
Keith
An article from the November 29th edition of the Globe and Mail (Focus). Excerpts:
While few economists believe the global economy will fall into a 1930s-style collapse, a similar approach to the current financial crisis may not work as well now for a simple reason: Today`s economy is largely driven by the creative industries that have grown up over the past two or three decades. The overall picture now bears more resemblance to the early industrial economy of the mid-to-late-19th century - when industries such as automobiles, chemicals and electronics were just emerging - than to the relatively mature industrial economy of the 1930s.
Restarting economic growth this time around will require a new social and economic framework that is in line with the new idea-driven economy.
The trouble is: We remain trapped in the mental models of the old industrial economy.
Our reliance on single-family homeownership is a product of the past 50 years - and the experiment has outlived its usefulness. Not only is it now readily apparent that not everyone should own a home, and that the mortgage system is a big part of what got us into the current financial mess, but homeownership also ties people to locations, making it harder for them to move to where work is. Homeownership made sense when most people had one job and lived in the same city for life. But it makes less sense when people change jobs frequently and have to relocate to find new work.
Government can also encourage a shift from ownership toward flexible rental housing.
Only by catalyzing such a wholesale shift in our underlying socio-economic system - and thereby unleashing the massive innovative and productive potential of our time - can government investment restore our economy.
http://www.theglobeandmail.com/servlet/sto...richard+florida
Keith