Hi.  I've been trying to present alternative views to those of
corporate media around the crises in the middle east.  I realize
that makes an unbalanced view of life, our concerns and this
newsletter.  I'll try to use the afternoon mailings for the best
of the rest, absent genuine crisis.  Today's choice was easy.
I'm sending this today to a couple of list-serves which only get
morning mailings.  Anyone in those groups who wants to get
them regularly can just return email to me and ask.

Here, Meyerson produces a writing gem that becomes ever more
important as his argument developes.  The Weekly should be
commended for keeping at least one of its founding tenets and
principals - hopefully delaying it's slide to la la land.  Sigh...
Ed


The LA Weekly, July 21-27
Downwardly Mo

Can better schools - can better anything - fix the L.A. economy?

By HAROLD MEYERSON
Wednesday, July 19, 2006 - 6:00 pm

Like any major metropolis, Los Angeles has its normal sea of troubles, but
there are two fundamental problems that really define the city and the
challenges it confronts. The first, with which the Weekly has dealt
extensively of late, is the quality of its air. The second, which may be
even harder to fix, is the quality of its economy. Over the past quarter
century, Los Angeles has been downwardly mobile, with its middle class
shrinking to a fraction of its former size. Both these problems - air
quality and, even more, the vanishing middle - afflict the nation generally.
But Los Angeles has opened such a wide lead on every other city that we're
not just quantitatively different; we're qualitatively in a class by
ourselves.

Two surveys that have come out in recent months spell out the economic
problem in the starkest of terms. In June, the Brookings Institution
released a study titled "Where Did They Go? The Decline of Middle-Income
Neighborhoods in Metropolitan America," a survey of the nation's 100 largest
metropolitan areas in which Los Angeles has the starring role as the city
that's fallen the furthest. Looking at census-tract data from the 1970 and
2000 census reports, the study notes that whereas 58 percent of
neighborhoods in those metropolitan areas were middle income in 1970, just
41 percent were in 2000. It's in L.A., though, that the middle has truly
vanished. Just 28 percent of Los Angeles neighborhoods are middle income.
That ranks a cool 100 out of the 100 largest metro areas.

As with neighborhoods, so with families. A scant 17.4 percent of L.A.
families were middle income in the 2000 census, which ranked us next to
last. (New York brought up the rear at 16.2 percent.) Angelenos were both
richer and poorer: 40.4 percent of local families had low incomes; 42.2
percent had high incomes. The problem is that the poverty of the poor
exceeded the wealth of the rich. Between 1970 and 2000, real median family
income in L.A. declined - that's declined - by 5.7 percent.

This didn't happen in other cities. Brookings looked most intently at 12
metropolitan areas, including L.A., Chicago, Philadelphia, Oakland and
Baltimore - hardly a list composed exclusively of boomtowns. Los Angeles was
the only one in which median income went down.

The Los Angeles of 1970 was another country, a different world, from what it
is today. It was home to a giant aerospace industry and the second-largest
auto-manufacturing center in the nation - both industries unionized, both
helping give the region a vast and vibrant middle class. Construction and
trucking were largely unionized then too. Today, those jobs and the people
who once held them are long gone - many hightailing it to other states in
the early and mid-'90s, when aerospace collapsed, in search of the
middle-income jobs no longer found in L.A.

Los Angeles rebounded from the recession of the early and mid-'90s, of
course, but its middle class did nothing of the kind. Adapting brilliantly
to the flood of low-skilled and poorly educated immigrants, the local
economy created thousands upon thousands of new shit jobs in fast-food
joints and off-the-books factories, in driving trucks and building homes for
nonunion employers, in mowing lawns and taking care of the kids. A recent
survey, "L.A. Labor Market Strengths and Weaknesses," from the Los Angeles
Economic Roundtable, shows, for instance, that the industry that created the
most private-employer jobs between 1996 and 2002 was "limited-service eating
places." Again, we're creating high-end jobs as well, many in entertainment.
But 24 percent of employed L.A. city residents, the Roundtable concludes,
are poor.

The absence of jobs in the middle means that traditional ladders of social
mobility that were there for generations of immigrants (from either foreign
countries or domestic rural areas) throughout American history aren't there
now. And as the poor are cut off from the prospect of middle-income
employment, they're cut off from the prospect of living in middle-income
neighborhoods too. Nationally, according to Brookings, 55 percent of
low-income families lived in middle-income neighborhoods in 1970. By 2000,
just 37 percent did. Brookings didn't publish the figures for L.A., but they
have to be a lot worse.


In a sense, Brookings has provided the statistical verification, if one were
needed, for the premises, if not the ensuing action, of Crash. The L.A. that
emerges from its study, and the Roundtable's, is all gap and no bridge.

There are, of course, some notable attempts at bridge building. The
victories of the labor movement and living-wage activists to win higher
wages for public-contract workers or employees at projects built with
governmental assistance or tax breaks have moved a number of workers (not
nearly enough) out of poverty. So has the growth of unionization among such
low-wage workers as janitors and (happening just now) security guards. But
the inability of supermarket workers a few years back to block the
imposition of wage and benefits cuts for new hires reduced the number of
local middle-income jobs.

The challenge for the city is how to fight these battles on the much larger
scale required to rebuild a middle class - and that's certainly how the
mayor sees it. Antonio Villaraigosa's war over the schools is about all
manner of things large and small, but at its largest, it stems from a
belief - at minimum, a hope - that an educated work force will rebuild the
middle class here.

If you look at the incomes of individual workers, that seems a logical
inference. Among employed L.A. city residents, those with college degrees
have median annual incomes of $57,000, the Roundtable study says, while
those who haven't finished high school have yearly incomes of $19,000. On an
individual level, and in aggregate as well, education can only help.

But how much? Is it still true, as Bill Clinton argued during his 1992
campaign for president, that what you earn depends on what you learn? Or has
the brave-new-world economy decoupled even learning and earning? According
to an article this spring in Foreign Affairs by Alan Blinder, the Princeton
economist whom Clinton appointed to the Federal Reserve's Board of
Governors, the number of American jobs that can be performed abroad far more
cheaply will in several years total somewhere between 42 million and 56
million. That includes virtually all manufacturing jobs, but it also
includes the jobs of many highly educated professionals that, through the
miracle of electronic communications, can be performed by Chinese and Indian
professionals who work a lot cheaper. (Routine legal contracts, Blinder
writes, can be drafted in Delhi, though legal jobs requiring personal
contact - divorce lawyers, for instance - will stay here. Now, there's a
vision for our economic future.)

With the coming of a global white-collar labor market to rival the
blue-collar wave that hit auto assembly, to what degree will education
really be the magic bullet? In 2002, according to the Bureau of Labor
Statistics, 26.9 percent of all jobs in the U.S. required a college degree.
In 2012, the bureau estimates, that figure will rise to 27.9 percent - a
whopping 1 percent increase.

In truth, there's not a political tendency anywhere on the planet that knows
how to preserve the middle-class character of advanced economies in the face
of globalization - and certainly not in the U.S., where companies, more than
in any other nation, reflexively seek to boost profits by doing anything
they can to reduce labor costs. None of this exactly negates the idea that
education is a prerequisite for upward mobility; it just limits the degree
of broad upward mobility that's possible. It certainly doesn't diminish the
imperative for better schools. L.A. clearly needs them. It just needs a
whole lot - and it's hard to say what, exactly - else.








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