1/ to understand a city, try to find its economic core. This likely explains what is unique about that city.
I will give you some examples that I am familiar with:
I will give you some examples that I am familiar with:
2/ Miami makes money out of excess capital coming mostly from the northeast in the US and from third world countries. Both monies are looking for comfort. The business of that city is to sell comfort (and its cousins, luxury, and safety)
3/ The San Francisco Bay Area makes money by taking high-risk bets that information & communication technology can create new industries & disrupt old ones.
In a sense, this is the continuation of the gold rush, looking for outsized returns & taking in a ton of risk to get it
In a sense, this is the continuation of the gold rush, looking for outsized returns & taking in a ton of risk to get it
4/ Caracas, Venezuela makes money by servicing the distribution of oil wealth or by rent-seeking it directly. A good deal of wealth is made with government contracts or loopholes on the ever-changing currency and import/export laws.
This breeds ta on of "bad opportunism"
This breeds ta on of "bad opportunism"
5/ London makes money by providing financial services to preserve and grow global capital. Economies driven by financial service industries tend to be both very welcoming (a pound is a pound) and very unequal ( most pounds are in the fewest hands)
6/ LA/Hollywood makes money by capturing attention for fictional people, their stories and the real people that make them happen (stories fit several formats including movies and music).
Attention economies tend to display a ton of peer support but also, tons of narcissism
Attention economies tend to display a ton of peer support but also, tons of narcissism
7/ Each of these local economies sets the ethos for the city: what it values, who moves there and what business exist.
The economic engine defines:
- job opportunities
- skills people need
- conversations people have
- things people value
The economic engine defines:
- job opportunities
- skills people need
- conversations people have
- things people value
8/ One caveat: big economic engines build rich peripheral ecosystems. In cities with big economic engines, it is possible to find almost anything you like on the periphery
9/ I'm curious to learn about the economics of other cities. If you have any examples, please share
10/ Thanks @dksf, @KevinSimler, @APompliano, and @hnshah for the feedback. Next post on cities will like focus on the impact of transportation tech, remote work tech and longevity on the future of cities
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