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Are Americans Becoming Less Nomadic?

Source: http://clausvistesen.squarespace.com/alphasources-blog/2009/10/25/are-americans-becoming-less-nomadic.html
Posted on Sunday, October 25th, 2009 | In Investing Lessons, Market Commentary
Contributed by: Claus Vistesen (http://clausvistesen.squarespace.com/) -

As a puny yet honest attempt to show you that I actually read other things than plain economics I thought that I would share this piece with you on declining nomadism amongst Americans; it is written for Newsweek by author Joel Kotkin. I am not quite sure whether he believes the ageing of the population to be the decisive factor contributing to the rise of localism which he speaks about or just a factor among many. I would presume that sociologists and historians could find an explanation for this development in their distinct theoretical tool kits too without invoking the demographic evolution. Although, it is tempting to go for a nostalgic narrative here I don’t think this is appropriate. To me, an increase in physical localism could go well hand in hand with an ever greater degree of global integration and social mobility in the non-physical sense.

On almost any night of the week, Churchill’s Restaurant is hopping. The 10-year-old hot spot in Rockville Centre, Long Island, is packed with locals drinking beer and eating burgers, with some customers spilling over onto the street. “We have lots of regulars—people who are recognized when they come in,” says co-owner Kevin Culhane. In fact, regulars make up more than 80 percent of the restaurant’s customers. “People feel comfortable and safe here,” Culhane says. “This is their place.”

Thriving neighborhood restaurants are one small data point in a larger trend I call the new localism. The basic premise: the longer people stay in their homes and communities, the more they identify with those places, and the greater their commitment to helping local businesses and institutions thrive, even in a downturn. Several factors are driving this process, including an aging population, suburbanization, the Internet, and an increased focus on family life. And even as the recession has begun to yield to recovery, our commitment to our local roots is only going to grow more profound. Evident before the recession, the new localism will shape how we live and work in the coming decades, and may even influence the course of our future politics.

Perhaps nothing will be as surprising about 21st-century America as its settledness. For more than a generation Americans have believed that “spatial mobility” would increase, and, as it did, feed an inexorable trend toward rootlessness and anomie. This vision of social disintegration was perhaps best epitomized in Vance Packard’s 1972 bestseller A Nation of Strangers, with its vision of America becoming “a society coming apart at the seams.” In 2000, Harvard’s Robert Putnam made a similar point, albeit less hyperbolically, in Bowling Alone, in which he wrote about the “civic malaise” he saw gripping the country. In Putnam’s view, society was being undermined, largely due to suburbanization and what he called “the growth of mobility.”

Yet in reality Americans actually are becoming less nomadic. As recently as the 1970s as many as one in five people moved annually; by 2006, long before the current recession took hold, that number was 14 percent, the lowest rate since the census starting following movement in 1940. Since then tougher times have accelerated these trends, in large part because opportunities to sell houses and find new employment have dried up. In 2008, the total number of people changing residences was less than those who did so in 1962, when the country had 120 million fewer people. The stay-at-home trend appears particularly strong among aging boomers, who are largely eschewing Sunbelt retirement condos to stay tethered to their suburban homes—close to family, friends, clubs, churches, and familiar surroundings.

(…)

After decades of frantic mobility and homogenization, we are seeing a return to placeness, along with more choices for individuals, families, and communities. For entrepreneurs like Kevin Culhane and his workers at Churchill’s, it’s a phenomenon that may also offer a lease on years of new profits. “We’re holding our own in these times because we appeal to the people around here,” Culhane says. And as places like Long Island become less bedroom community and more round-the-clock locale for work and play, he’s likely to have plenty of hungry customers.

Well worth a read and a closer reflection.

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About Claus Vistesen (http://clausvistesen.squarespace.com/)
Claus Vistesen is a 23 year old macroeconomist on the verge of finishing his MSc in Applied Economics and Finance from the Copenhagen Business School. His primary research interests are international finance and international macroeconomics, especially, the changing structure of global and national demographics. Claus takes an interest in the econometrics discipline which he intends to dig deeper into post graduate.

He primarily writes out of his own blog Alpha.Sources as well as Global Economy Matters. He liaises closely with his colleague and friend Edward Hugh whom he develops and produces research material and articles with. In terms of specific topics Claus tracks the European economies as well as Japan as his main areas of focus.

Claus has been online with Alpha.Sources since September 2005 and has realized how a serious online presence can be an asset in terms of academic work as well as on a personal relationship level. He is grateful for the reactions, opinions, and contacts he has received through this site.

The interaction between macroeconomics and demographics is a strong anchor in what goes on at Alpha.Sources, and his work in general. In the end, Alpha.Sources represents a way for Claus to conceptualize his thoughts and views on the surrounding world, so no boxes and boundaries can be set on the content.

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