Relax, We’ll Be Fine

Published: April 5, 2010

According to recent polls, 60 percent of Americans think the country is heading in the wrong direction. The same percentage believe that the U.S. is in long-term decline. The political system is dysfunctional. A fiscal crisis looks unavoidable. There are plenty of reasons to be gloomy.

But if you want to read about them, stop right here. This column is a great luscious orgy of optimism. Because the fact is, despite all the problems, America’s future is exceedingly bright.

Over the next 40 years, demographers estimate that the U.S. population will surge by an additional 100 million people, to 400 million over all. The population will be enterprising and relatively young. In 2050, only a quarter will be over 60, compared with 31 percent in China and 41 percent in Japan.

In his book, “The Next Hundred Million: America in 2050,” über-geographer Joel Kotkin sketches out how this growth will change the national landscape. Extrapolating from current trends, he describes an archipelago of vibrant suburban town centers, villages and urban cores.

The initial wave of suburbanization was sprawling and featureless. Tom Wolfe once observed that you only knew you were in a new town when you began to see a new set of 7-Elevens. But humans need meaningful places, so developers have been filling in with neo-downtowns — suburban gathering spots where people can dine, work, go to the movies and enjoy public space.

Over the next 40 years, Kotkin argues, urban downtowns will continue their modest (and perpetually overhyped) revival, but the real action will be out in the compact, self-sufficient suburban villages. Many of these places will be in the sunbelt — the drive to move there remains strong — but Kotkin also points to surging low-cost hubs on the Plains, like Fargo, Dubuque, Iowa City, Sioux Falls, and Boise.

The demographic growth is driven partly by fertility. The American fertility rate is 50 percent higher than Russia, Germany or Japan, and much higher than China. Americans born between 1968 and 1979 are more family-oriented than the boomers before them, and are having larger families.

In addition, the U.S. remains a magnet for immigrants. Global attitudes about immigration are diverging, and the U.S. is among the best at assimilating them (while China is exceptionally poor). As a result, half the world’s skilled immigrants come to the U.S. As Kotkin notes, between 1990 and 2005, immigrants started a quarter of the new venture-backed public companies.

The United States already measures at the top or close to the top of nearly every global measure of economic competitiveness. A comprehensive 2008 Rand Corporation study found that the U.S. leads the world in scientific and technological development. The U.S. now accounts for a third of the world’s research-and-development spending. Partly as a result, the average American worker is nearly 10 times more productive than the average Chinese worker, a gap that will close but not go away in our lifetimes.

This produces a lot of dynamism. As Stephen J. Rose points out in his book “Rebound: Why America Will Emerge Stronger From the Financial Crisis,” when income is adjusted for family size, the percentage of prime-age American adults earning between $35,000 and $70,000 declined by 12 points between 1979 and 2007. But that’s largely because the percentage earning more than $105,000 increased by 14 points. Over the last 10 years, 60 percent of Americans made more than $100,000 in at least one of those years, and 40 percent had incomes that high for at least three.

As the world gets richer, demand will rise for the sorts of products Americans are great at providing — emotional experiences. Educated Americans grow up in a culture of moral materialism; they have their sensibilities honed by complicated shows like “The Sopranos,” “The Wire” and “Mad Men,” and they go on to create companies like Apple, with identities coated in moral and psychological meaning, which affluent consumers crave.

As the rising generation leads an economic revival, it will also participate in a communal one. We are living in a global age of social entrepreneurship.

In 1964, there were 15,000 foundations in the U.S. By 2001, there were 61,000. In 2007, total private giving passed $300 billion. Participation in organizations like City Year, Teach for America, and College Summit surges every year. Suburbanization helps. For every 10 percent reduction in population density, the odds that people will join a local club rise by 15 percent. The culture of service is now entrenched and widespread.

In sum, the U.S. is on the verge of a demographic, economic and social revival, built on its historic strengths. The U.S. has always been good at disruptive change. It’s always excelled at decentralized community-building. It’s always had that moral materialism that creates meaning-rich products. Surely a country with this much going for it is not going to wait around passively and let a rotten political culture drag it down.

Story Written by The New York Times

Posted April 05, 2010

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Yakima Town Hall - Relax, We'll Be Fine

Relax, We’ll Be Fine

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