Showing posts with label urban economy. Show all posts
Showing posts with label urban economy. Show all posts

7.24.2009

The Attraction fo Free



Everyone likes to get free stuff, even when it's junk -- like brochures and keychains at a trade show, or a reusable bag from your local market. Retailers and businesses give out free things as a marketing ploy, to build rapport and disseminate information. Another form of free comes in the newspaper ads, with the buy one get one free coupon, or the holiday giveaways (think Black Friday.) These giveaways are designed to attract patrons to a certain retail location in hopes that they will spend more moeny, come back more often, and essentially support the business. It seems to work as my mailbox is inundated with these coupons nearly everyday.

So, with my tabletop covered in coupons and freebie offers, I began to think, how can Rustbelt cities and cities with declining populations use the idea of free to attract new residents. The goals seem similar, stores need people to come in and buy their assorted goods while cities need to attract people to come and start businesses, raise families, and pay city taxes. Perhaps these cities could create marketing campaigns targeting young creative entrepreneurs by offering buildings, land, space, tax breaks. After all, the Rustbelt is, if nothing else, is rich in land and space, just look at Flint.

There exists a whole class of creatives out there who would love to start their own businesses but can't due to the burden of large overhead costs especially in business hubs like NYC or Chicago. Rustbelt cities in conjunction with the internet's world wide marketplace offer very low overhead costs. However, in order to make these individuals pack their bags and move to a new city that they know little about and attempt to form some type of business, they need incentive. Businesses take time to start, and by offering entrepreneurs free rent, you are granting them time to learn the city, be inspired by the city, and establish their own business' in the city.


The real power of a program like this comes in the formation of a community. Once the idea catches on and creatives begin to take to he plunge into the Rustbelt, stronger and stronger creative communities will form attracting more and more people to the city. This can be seen in the reformation of the DUMBO neighborhood in NYC from a burnt out, unattractive block, into a vibrant community of artists and professionals. David Walentas, a NY developer bought up a huge portion of the Dumbo neighborhood in the late 90's then enticed an array of artists to take up residence by offering free rent for an extended period of time. The artists attracted the professionals and soon the neighborhood was bustling with a diverse group of New Yorkers. So the question is, can this work on a national if not global scale with the Rustbelt and other declining cities?


(Photo from icanhascheezburger, Corine Vermeulen-Smith, and NYT The original full-sized color version can be viewed by clicking the photo.)

5.25.2009

The Two Creative Classes


Many of mankind’s greatest achievements are products of the urban cauldron. That the density, heterogeneity and social environment of cities leads to more rapid innovation and idea sharing should not surprise many, but it’s worthwhile to examine and understand the mechanics of the relationship between cities and their cultural products.

Richard Florida’s Creative Class thesis has garnered much attention since he introduced it in 2002 with The Rise of the Creative Class. That book’s main point—cities that manage to attract members of the “creative class” benefit economically and socially in comparison with cities that don’t—seems to dovetail nicely with the notion that cities are innovation hubs.

The relationship between the two ideas, however, may not be entirely harmonious. While the coffeehouses of early 20th century Vienna may have produced the likes of Arthur Schnitzler and Karl Kraus, those literary talents didn’t necessarily equate directly with Vienna’s economic vitality. Likewise, the music scenes that emerged from New York and Cleveland in the 1970’s came out of urban decay, and didn’t necessarily effect a change in those conditions.

The Creative Class, on the other hand, is expected to translate that same intelligence into economic activity. When civic leaders develop incentives to attract this demographic, their goal is generally not art for art’s sake—not that it should be. Municipal government should not be charged with giving a city an arts scene, but it’s reasonable to charge city leadership with creating economic activity. That, in short, is what the Creative Class program means for mayors and city councils.

So far, so good. City leadership can take a laissez-faire approach to the arts and a hands-on approach to the local economy. The trick, though, is not to stifle the former by attending to the latter. A city can attract plenty of creative types who will start companies and go out to eat four times a week, but the incentives employed to attract those groups might inadvertently extinguish the scenes that don’t pay and don’t spend. If it becomes too difficult to live cheaply in a city, the will to tinker or experiment on a minimal income might dwindle or vanish. The two aforementioned groups need not be mutually exclusive, however, and as planners and elected officials articulate their vision for a given city, they should remain conscious of what both creative classes have to offer and encourage each to exist in that city.


(Photo from Flickr user nickmickolas.)