Youth unemployment will be a big issue soon

Ominous posting from NYT columnist Bob Herbert. His point is that this labor market is even worse for young people, ages 16 - 30. They are severely underemployed, which will lead to social problems in a few years time as they lag behind their employed peers. Plus their peers with good connections etc are taking jobs that normally require less education, pushing them even further behind. It's interesting that 30 Rock touched on the social implications of the crash in NY – a return to the very depressing 70s and 80s.

I've always wondered how Gen X and Y were going to be able to afford the life that the Boomers are leaving behind. Demographically speaking, there aren't enough high earning people under 45 that could have kept asset prices at their levels. The hoops that people needed to go through to afford a home on the coasts didn't bode well for those prices. I worry most about those who counted on high housing prices to fund their retirement. I don't think there will be enough people able to pay these prices. How far will asset prices drop? Who knows. But cash is ruling the real estate market now so prices will come down significantly.

Where do you get your news?

Read an interesting article on WARC.com that cites a Pew study regarding where Americans get their news. Of the 1000 pollled, 40% get their news on the web. 24% state that the net is their primary news source. 

I would have to include myself in that 24%. I've never liked TV news and by the time the news comes on, I pretty much know what's happening anyway. When I first moved to NY, I had a NY Times subscription but the paper just piled up so I cancelled it. 

What I really want is a full-color thinner Kindle device that automatically delivers my news in the morning. I'd be willing to pay for it. I'm sure it's around the corner. 

Hat tip [WARC.com]

iTunes Store Tax?

Considering free downloads are still an issue that record companies are battling, it seems silly to tax media sold online at this point in time. But that's what Gov. Paterson wants to do to help close the hole in NY State's budget. I understand that the State is facing a budget crisis. But the download industry is in its infancy. Plus this is the first time that the industry will be challenged by a recession. When everyone's making money, few object to paying for downloads. With consumers in dire straits, I imagine fewer will pay for downloads when they can get stuff for free. Long story short, I doubt much revenue will be garnered from this in the short to medium term. Time will tell I guess.

Hat tip [Economist]

The Romance of Squalor

I read a pretty interesting NYT op-ed comparing Paris to Havana. In it, the author's recent visit to Havana showcased a world free from Blackberries, Twitter and the 'always on' mentality that many of us have adopted, by choice or by coercion. He contrasts the 'honesty' of Havana with the supposed soulless sanitation of Paris. 

What is lacking in Paris and what is present in Havana is a robust working class and all of the sounds and smells that accompany that. The factories, the bakeries, the decay etc. Turns out a city made up of rich people just isn't as much fun. 

Sometimes I have a difficult time with these opinions, and I've heard them often. There is a segment of the population that laments the passing of the Studio 54 NY - clubs, glamor, loudness, dirt, seedy etc. Selective memories, these. Yes NY was a blast but it was also scary dangerous. Violent crime was a major issue in the 70s and 80s. You were taking your life into your hands by walking down certain streets or taking the subway after a certain hour. That didn't mean you didn't do it nor do I mean it's Disney safe now. It's just that the risks involved were very real. I can't say I'm a huge Giuliani fan but I appreciate what he did to usher in a much safer NY. 

We want our cities gritty but not TOO gritty. How much squalor is too much? What about the lives of those living in dire circumstances? Who determines the correct affluent/squalor ratio? 

What will NY be like in a year?

CNN Money has an interesting article from the AP on the health of employment in the financial services sector, which is not good. Then there's this BusinessWeek article on the decline of NY as THE global finance hub. Combine this Ad Age article about the slashing and burning taking place in publishing/media. 

Batten down the hatches NY... we're in for a bumpy ride.

How do you think the city will change? What will get worse and what will get better?