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Tuesday, November 29th

The Complex Complexion Of New Orleans
Cinco De Mayo could be as widely celebrated in future New Orleans as Mardi Gras. Reports this week note the city is filling fast with Mexican immigrants, many undocumented.

Before Katrina hit, New Orleans was 3 percent Latino. Since the rebuilding has begun, the migrant workers have come. This, combined with an observed African-American exodus may add up to a city with much more of a Latin flavor.

Related stories

Big Easy finds it hard to fill jobs

A New Spice in the Gumbo
Will Latino day laborers locating in New Orleans change its complexion?

Eric Miller (editor@newcolonist.com), on 11.29.05 @ 17:10PST

Saturday, November 26th

FY 2006 Transportation Appropriations Bill Sent to President - 12.3 Percent Increase for Transit!
Before recessing for Thanksgiving on Friday, November 18, both Houses of Congress approved the conference agreement on the Fiscal Year 2006 Departments of Transportation, Treasury, Housing and Urban Development, the Judiciary, and Independent Agencies Appropriations bill (H.R. 3058).

The House passed the measure by a vote of 392-31, and the Senate approved the bill by unanimous consent. The bill provides $8.590 billion for federal transit programs during the current fiscal year, 12.3 percent or $944 million more than the FY 2005 level. The President is expected to sign the bill soon. Once he does, FTA must by law publish its apportionment of funds within 10 days and FY 2006 transit funds can begin to be made available. Last week the APTA Executive Committee adopted a resolution urging Congress and the Administration to expedite and streamline the flow of SAFTEA-LU funds to enhance private sector business activity depressed by the delay in reauthorization, and APTA staff this week and next are communicating that message in meetings with senior DOT officials.

The FY 2006 Transportation Appropriations bill also provides $1.315 billion for Amtrak, an increase of $107.7 million over FY 2005, but numerous new restrictions have been placed on the railroad's activities. For the first time, funding for Amtrak will be split among three accounts: Capital and Debt Service, Operating Subsidy Grants and Efficiency Incentive Grants with spending limitations and guidelines in each category. Amtrak is also required to cut costs below certain to-be-established baseline costs or federal subsidies for controversial Amtrak services like food service and first class (sleeper car) operations will be cut off next summer.

Eric Miller (editor@newcolonist.com), on 11.26.05 @ 06:27PST

Thursday, November 24th

John Murdock
I hadn't realized John Murdock passed. A big loss.

I talked to him many times when working as a reporter at the Observer, a now defunct community newspaper. Later we became friends, even continuing that friendship through letters when I moved to the West Coast. Eventually we lost touch, but John's fighting spirit is not one that would easily just pass through a person.

I remember in one of our last conversations he compared years of communicating with the Vatican to save St. Nicolas Church with a group of Mennonites "who just went out and put a new roof on."

Pittsburgh hasn't seemed the same this year and now I realize why.

More

Eric Miller (editor@newcolonist.com), on 11.24.05 @ 06:06PST

Tuesday, November 22nd

It's a Repeat: City Crime Rankings Names Newton Safest, Camden Most Dangerous
Newton, Massachusetts apparently likes the view from the top. For the second consecutive year, Newton has earned the title of America's Safest City. The announcement was made in the new edition of City Crime Rankings, an annual reference book of crime statistics and rankings slated for publication this week. The results of the 12th annual Safest City Award were announced today by Morgan Quitno Press, a Lawrence, Kansas-based publishing and research company. At the opposite end of the crime scale, Camden, New Jersey repeated as the nation's Most Dangerous City.

The Morgan Quitno Safest City Award is based on a city's rate for six basic crime categories: murder, rape, robbery, aggravated assault, burglary and motor vehicle theft. All cities of 75,000+ populations that reported crime data to the FBI for the six crime categories were included in the rankings. In this year's survey, 369 cities were considered for the award. Final 2004 statistics, released by the FBI on October 17, 2005, were used to determine the rankings.

Joining Newton at the top of the Safest City rankings are Clarkstown, NY; Amherst, NY; Mission Viejo, CA and Brick Township, NJ. Newton is located just west of Boston.

At the opposite end of the Morgan Quitno crime scale, Camden, New Jersey ranks as the nation's most dangerous city for the second consecutive year. Located across the Delaware river from Philadelphia, Camden had the highest violent crime, murder and robbery rates among cities of 75,000 or more population.

Trailing Camden on the more dangerous end of the crime rankings (in ascending order) are Detroit, MI; St. Louis, MO, Flint, MI and Richmond, VA.

In addition to ranking the safety of cities, Morgan Quitno Press also examined crime in metropolitan areas. For the first time, Logan, UT-ID tops the rankings as America's Safest Metropolitan Area. The Detroit-Livonia-Dearborn, MI metropolitan division ranked as the most dangerous.

The findings of the 12th annual Safest City and Metropolitan Area Awards are featured in City Crime Rankings 12th Edition, an annual reference book from Morgan Quitno Press. The newly updated edition of this volume will be available November 22nd. The Safest City and Metropolitan Area rankings are one of six Morgan Quitno Awards announced annually by the company. These other annual announcements designate the nation's Most Livable State (a state quality of life survey); the Healthiest State (a survey of state health care); the Safest and Most Dangerous States (a state crime survey); the Smartest State (a state education survey) and the Most Improved State (a survey of state trends.)

Eric Miller (editor@newcolonist.com), on 11.22.05 @ 09:10PST

Monday, November 21st

Skinny Towers
It seems pending construction of a "world's tallest" building is announced every few months in recent years with American cities again on the competitive list. A few short years ago, Americans seemed to yawn at the prospect of more tall buildings, but that changed the day two of them were knocked down.

The latest announcement is for a would-be addition to Chicago's skyline. If built, this tall tower could mean the return of the skinny spires constructed during the golden age of tall buildings. Certainly such a building would add interest to the windy city's skyline where others just add a block of fill.

The reason a skinny design is again attractive is because the hottest commodity in urban centers these days is not office space, but condos.

If built the new Chicago building would be the world's tallest, followed by the Sears Tower and then New York's proposed Freedom Tower--a structure that so far will not contain living space.

Chicago (and the world) could see the physical "Fordham Spire" designed by Spanish architect Santiago Calatrava by 2009.

Eric Miller (editor@newcolonist.com), on 11.21.05 @ 14:40PST

Sunday, November 20th

PCC's Return To Philadelphia Streets
"It doesn't seem like a place where you'd just go for the weekend," was a comment I heard before embarking on my recent journey to Philadelphia. Anyone who says that either doesn't like cities or hasn't been to Philadelphia since the trash piled up in the 1980s.

Each visit to Philadelphia brings more rewards. This trip I noticed a lot of condo buildings going up near the art museum, a great new market on Chestnut Street (although I can't recall the name right now) and most exciting, the PCC cars are finally running on the Girard line.

Taking the Broad Street line from Center City towards Temple University, at Girard Street I ascended to wait for a PCC car. Having lived in San Francisco where the bulk of the PCC's that once tied Philadelphia's neighborhoods together run, I was anxious to see the cars return in Philadelphia.

Unlike the cars in San Francisco, the cars currently running in Philadelphia have been completely overhauled and equipped with air conditioning (hey, it gets hotter on the East Coast). Where in San Francisco an operator manually puts a wooden platform at the door to create a bridge allowing handicapped passengers to enter, here there is a hydraulic lift. The windows on the Philadelphia cars don't open and the interiors have been relined with molded plastic and modern seats. Which is better? I am not sure. The cars in San Francisco might appeal more to tourists, but there are maintenance issues. The Philadelphia cars, I suspect are much easier to clean and maintain.

I'll have a photo for you after developing, but for now here's a web link Phillytrolley.org

Eric Miller (editor@newcolonist.com), on 11.20.05 @ 06:08PST

Tuesday, November 15th

Berlin Rolls into the Future
Germany's Michael Cramer has recently posted a superb (if charmingly mistranslated) article on sustainable urban transport in Berlin. Some excerpts:

"...the country who wins will be the one who succeeds in becoming independent from oil, who increases energy efficiency, change mobility behaviour and offers alternatives. The alternatives mean "renewable energy" and "public transport". Both are non polluting and both create employment. In Germany anyhow the renewable energy law of the red-green coalition created 150,000 jobs--more than any other branch. The major part of the steel production goes now into the production of wind turbines.
[...]
Berlin is actually ideally equipped for future-oriented transport policies. Berlin has a de-centralized urban structure which consists of 23 metropolitan districts, each of which has its own independent centre. This enables a significant amount of traffic to be avoided. Berlin still has the so-called Berlin mixture - i.e. work, leisure and dwelling in the same local area is still intact in many parts of the city, even in the historic city centre. Many trips can still be made on foot or by bike, and these means of transport are still actually used.

Berlin has more than 500 kilometres of urban railway and subway routes, and its tram net-work of 180 kilometres is the largest in Germany.

All of this explains why nearly every second household in Berlin does not possess an automobile."

Read the entire report at www.michael-cramer.de.

Richard Risemberg (rrisemberg@newcolonist.com), on 11.15.05 @ 07:51PST

Thursday, November 10th

Pittsburgh: A Bohemian Bargain and other Undervalued Markets
Opening up the most recent issue of "Smart Money" magazine (published by the Wall Street Journal), a cover blurb about home prices in 148 cities caught my eye. The story divided these cities into three categories: "Fairly Valued, Overvalued and Undervalued."

It seems I knew which cities would fall into their respective categories without looking. Boston, San Francisco and Las Vegas: overvalued. Pittsburgh: Undervalued. Sure enough, Pittsburgh made the top of the undervalued list and the aforementioned cities plus, LA, New York, Portland, Oregon and Portland, Maine made the list of overvalued cities. Of course the bulk are valued just right: Cleveland, Chicago, Philadelphia, Atlanta, Houston and Syracuse.

A recent article in the New York Times also confirmed something else I’ve suspected was true. New York, San Francisco, Boston and other long-popular cities have become so expensive that people are looking for new cities to call home.

I receive calls on a regular basis from New Yorkers who, having seen an ad for a cheap house, ask the simple question “how far is Pittsburgh from New York?” Others call excited about the housing stock available here at what seem to them like unbelievable prices.

According to the article, in 2004 a half million people left California for other parts of the United States, while fewer than 400,000 moved there. The research firm Economy.com estimates the net outflow has risen fivefold since 2001. That firm also estimates the number of people leaving New York, Boston and Washington is also on the increase. For example, net migration to Philadelphia more than doubled between 2001 and 2004. In fact, twice as many New Yorkers moved to Philadelphia as vice-versa.

A new book by Forbes magazine publisher Rich Karlgaard helps to explain this phenomena. Calling Pittsburgh a “Bohemian Bargain,” Karlgaard notes that the cost-of-living gap between urban coastal cities and the heartland of the country is now the widest it has been since the Great Depression.

Looking through a recent issue of New York magazine, it’s easy to see what makes Pittsburgh attractive. One advertisement for condo’s in a new building advertise one bedroom units starting at $555,000 and two bedroom units starting at $1,105,000. These aren’t the most luxurious of units either. The same issue notes the most expensive rental in Manhattan is $55,000 a month.

Of course outward movement from big, pricey cities won’t necessarily translate into big increases in Pittsburgh. None-the-less, this is Pittsburgh’s opportunity. It’s clear that people are looking elsewhere. They’re looking for quality of life and a low cost of living. I am confident not only that Pittsburgh can provide that, but that many have already found it in Pittsburgh.

Eric Miller (editor@newcolonist.com), on 11.10.05 @ 13:23PST

Friday, November 4th

Global Insight Releases New Study on the Impact of Wal-Mart on the U.S. Economy
Global Insight, the private company that brought together DRI and WEFA, the world's most respected economic analysis, forecasting and financial information companies, today announced the release of a new study, The Economic Impact of Wal-Mart. This study, which analyzes the national and region impact of the nation's largest retailer on the U.S. economy, was presented at a Wal-Mart sponsored conference in Washington, D.C. on November 4, along with papers written on this same topic from other sources.

Global Insight reviewed a wide range of previous studies that indicate that the efficiencies that Wal-Mart has fostered in the retail sector have led to lower prices for the U.S. consumer. These results were supported by statistical analysis which found that the expansion of Wal-Mart over the 1985 to 2004 period can be associated with a cumulative decline of 9.1% in food-at-home prices, a 4.2% decline in commodities (goods) prices, and a 3.1% decline in overall consumer prices as measured by the Consumer Price Index-All Items, which includes both goods and services. The main driver of this impact was a 0.75% improvement in the overall efficiency of the economy. Increased capital intensity and lower import prices were secondary drivers. The 3.1% decline in the price level was partially offset by a 2.2% decline in nominal wages, so that the net effect was to increase real disposable income by 0.9% by 2004.

Major National Findings
Consumer savings for Wal-Mart shoppers were generated through Wal-Mart's higher levels of capital investment in distribution and inventory control, lower import prices, and greater efficiency of the overall economy through the application of improved technology and processes. With the estimated 3.1% CPI impact, total cumulative savings to consumers amounted to $263 billion by 2004, or $895 per person. The study also includes an analysis of the sensitivity of the results to changes in the CPI and wage impact estimates on which the study findings are based.

According to the study, Wal-Mart had a positive impact on employment nationwide, generating 210,000 jobs by 2004, a 0.15% increase relative to the number of jobs that would have existed without Wal-Mart. Labor market dynamics, embodied in Global Insight's Model of the U.S. Economy, resulted in nominal wages across the whole economy declining 2.2% by 2004. This decline was more than offset by the fall in consumer prices, creating an increase in real disposable income of 0.9% by 2004. "Consumers earned less in nominal dollars, but their income bought them more in the economy with Wal-Mart because of real disposable income gains," the study concluded.

Global Insight's analysis of employee wage data provided by Wal-Mart shows its wages are comparable to the retail industry average for positions in the same area, leading the study to conclude that Wal-Mart pays a market wage that fairly reflects the skills, experience and education it requires of its workers.

To address concerns raised by Wal-Mart's critics who argue that the company contributes to wage compression in the U.S. economy, the study provides an analysis testing how sensitive the results are to the study's wage findings. This analysis concludes that if a portion of the consumer cost savings generated by Wal-Mart were caused by compression of wages, the overall improvement in the efficiency of the economy and the increase in real income would have been lower, while the level of employment would be higher.

Regional Findings
To supplement the national analysis, the study includes an in-depth examination of the Dallas-Ft. Worth area where Wal-Mart has a significant presence. Consumer cost savings in the area are estimated at 4.0% by 2004. "The impact of the cost savings in conjunction with other direct, indirect and induced impacts has led to 6,300 more jobs and a 2.6% increase in real disposable income in the area," the study said.

The Global Insight study also included an analysis of the effects on the structure of county-level retail employment when Wal-Mart enters or expands in a market. The study shows that with the opening of a typical 150-350 person Wal-Mart, retail employment increases by an average of 137 jobs over the near-term and levels off to a 97-job increase over the long-term. It also leads to net job losses in food stores, and apparel and accessory stores, and net job gains in building materials and garden supply stores, and general merchandise stores. According to the study, while Wal-Mart does appear to displace other retail establishments in a county, it also serves to stimulate overall retail sector development.

Eric Miller (editor@newcolonist.com), on 11.04.05 @ 14:33PST

Tuesday, November 1st

This Month's Cover Photo
You can purchase this month's cover photo on items found in our Marketplace! Start shopping Start shopping

Eric Miller (editor@newcolonist.com), on 11.01.05 @ 08:55PST

Economic Challenges and Solutions for an Aging America
A new series of policy briefs from the nonpartisan Urban Institute outlines challenges confronting an aging America and assesses their possible solutions.

The series, Older Americans' Economic Security, documents the retirement prospects of the baby boom generation and beyond, pointing to increased pressure on Social Security financing and the needs of vulnerable populations. Among the solutions discussed are longer working lives, incentives to save, and benefit cuts that protect low-income retirees.

Barbara Butrica and Cori Uccello provide an overview of baby boomers' economic prospects in "How Will Boomers Fare at Retirement?." They demonstrate that while boomers' wealth at retirement will be higher than for previous generations, boomers' retirement incomes will be lower in relation to their pre-retirement incomes, and a larger share of retirees will have less income than needed. Causes include variations in lifetime earnings, savings, and pension coverage.

Toder, in "What Will Happen to Poverty Rates among Older Americans in the Future and Why?," discusses how economic growth will reduce poverty rates over time, but notes that a larger share of retirees will be relatively poor compared to prevailing living standards. Higher divorce rates and the increase in the Social Security retirement age contribute to higher relative poverty among the elderly.

The series also discusses individual, private sector, and political responses that could shore up retirees' economic security. In "Working Longer to Enhance Retirement Security," Richard Johnson explains how delaying retirement "would expand the pool of productive workers and promote economic growth," as well as "increase lifetime earnings and retirement savings for workers, improving their financial security at older ages." For example, by retiring at 70 instead of 62, a typical unmarried man could almost double his annual income at age 75.

In "Lifetime Patterns of Voluntary Employee Pension Contributions," Karen Smith writes "sound retirement planning increasingly depends on the commitment of individuals to invest in tax-deferred retirement accounts throughout their working lives." Using new data, she explains how workers' contributions to employer-sponsored plans vary greatly from year to year, which can make it hard to build a secure retirement nest egg.

In a brief to be released soon, Gordon Mermin examines how eliminating the Social Security deficit by indexing the growth of initial retirement benefits by prices instead of wages will affect different groups of retirees. "Reforming Social Security through Price and Progressive Price Indexing" shows that wage indexing for the bottom 30 percent of earners while price indexing for the rest protects lower-income retirees, though over time it could significantly reduce Social Security's share of retirement income for middle-income Americans.

In another forthcoming brief, "Women and Social Security," Melissa Favreault notes that the current Social Security system is highly favorable to women in general, but favors nonworking spouses over working women with the same household income. Even so, women, especially if unmarried, are at greater risk of poverty in retirement than men. Favreault shows how changes in the benefit structure can reduce Social Security costs while protecting women who most need support.

Older Americans' Economic Security is part of the Urban Institute's Retirement Project, established to assess how current and proposed retirement policies, demographic trends, and private-sector practices affect the well-being of older Americans and the economy. For more information on the project, visit http://www.urban.org/retirement.

Eric Miller (editor@newcolonist.com), on 11.01.05 @ 08:07PST