The Fall of the Rise of the Creative Class Theory

Renee Anderson walks toward Cofey's Cafe for lunch in the Plaza District on NW 16th near Indiana in Oklahoma City. By John Clanton, The Oklahoman

Richard Florida in Oklahoma City, 2004.

Get out your coffee. Sit down. Relax. I’m feeling provocative today. I’m ready to start up a debate. Who am I? How do I fit into things? What says more about me – the fact that I love the Plaza District, Paseo and enjoy the communal tables at Big Truck Tacos? Or am I defined by the fact I choose to live, work and play in Oklahoma primarily because I believe it’s a great place to raise a family? Am I defined by how I enjoy performances by the Flaming Lips and love their involvement with Oklahoma City and revival of the urban core, or am I defined by the fact I’m neither amused or enamored by Flaming Lips frontman Wayne Coyne’s use of profanity and seemingly casual attitude toward drugs? Am I a hypocrite to admit to both views toward this Grammy-winning band with a worldwide following?

Maybe I’m a bit confused. But I’m less and less confused by the legacy of Richard Florida’s 2002 book “The Rise of the Creative Class.” In case you don’t recall, Oklahoma City didn’t fare too well in these once hyped rankings:

Large Cities Creativity Rankings

Rankings of 49 metro areas reporting populations over 1 million in the 2000 Census

Top Ten Cities

City Creativity
Index
%Creative
Workers
Creative
Rank
High-Tech
Rank
Innovation
Rank
Diversity
Rank
1. San Francisco 1057 34.8 5 1 2 1
2. Austin 1028 36.4 4 11 3 16
3. San Diego 1015 32.1 15 12 7 3
3. Boston 1015 38.0 3 2 6 22
5. Seattle 1008 32.7 9 3 12 8
6. Chapel Hill 996 38.2 2 14 4 28
7. Houston 980 32.5 10 16 16 10
8. Washington 964 38.4 1 5 30 12
9. New York 962 32.3 12 13 24 14
10. Dallas 960 30.2 23 6 17 9
10. Minneapolis 960 33.9 7 21 5 29

Bottom Ten Cities

City Creativity
Index
%Creative
Workers
Creative
Rank
High-Tech
Rank
Innovation
Rank
Diversity
Rank
49. Memphis 530 24.8 47 48 42 41
48. Norfolk, VA 555 28.4 36 35 49 47
47. Las Vegas 561 18.5 49 42 47 5
46. Buffalo 609 28.9 33 40 27 49
45. Louisville 622 26.5 46 46 39 36
44. Grand Rapids 639 24.3 48 43 23 38
43. Oklahoma City 668 29.4 29 41 43 39
42. New Orleans 668 27.5 42 45 48 13
41. Greensboro 697 27.3 44 33 35 35
40. Providence 698 27.6 41 44 34 33

Eight years have passed since Richard Florida released this best and worst list of creative class cities. Surely you remember the creative class rankings – it was all the rage in the early 2000s and Florida had a great gig selling books and earning speaking fees addressing the importance of the creative class. He became a lecture tour superstar after the 2002 printing of his book, “The Rise of the Creative Class” in which he used U.S. Census data to show that economically successful cities are the ones that embrace immigrants, gays and artistic people he calls “bohemians.”

I’m not dismissing at all the importance of the creative class. But I was always a bit skeptical of Florida’s seemingly simplistic view of what makes a city successful. He’s a consultant with a niche – but I always wondered if the success of his much ballyhooed cities was at best fleeting – and not a sure thing.

Eight years later, four of his top five cities are an economic disaster. Home values are still in a free-fall in California, Massachusetts and Washington. Austin is the exception to that old top five list. So if a thriving creative class was the key to future success, why are four of the five cities faring so horribly in 2010?

Unemployment, 2010:

San Francisco: 9.7 percent

Austin: 7.8 percent

San Diego: 10 percent

Boston: 9.2 percent

Seattle 8.9 percent

Oklahoma City’s unemployment rate, by the way, stands at 6.9 percent. Housing is faring much better than elsewhere in the country. The economy isn’t great, but it’s not in a free-fall either.

How is this possible? It’s not as if Oklahoma City shot to the top of Richard Florida’s creative class chart. We’re still home to legislators Sally Kern and Randy Terrill – not exactly outspoken adherents to Richard Florida’s view of the world. And churches still dominate social life in the community.

The creative class that has gained more prominence locally in recent years is not comprised of newcomers doing things that were not being done in 2002. Indeed Wayne Coyne and Flaming Lips, the students attending the ACM@UCO, the artists in Paseo – these folks were around in 2002 when Richard Florida ranked Oklahoma City among the worst creative class cities in the country. Oklahoma City has, for years, been far more tolerant (do I dare say even “accepting”) of being home to not just artistic colonies but also a credible, vibrant gay business district centered around NW 39 and Pennsylvania Avenue.

When listening to and reading Richard Florida’s views a decade ago, it seemed as if he was almost dismissive of the importance of a city not just being friendly to the creative class, but also remaining a good strong place to raise a family. And at times it seemed as if Richard Florida was dismissing the role of Oklahoma City’s creative class simply because it remains home to a population that is still far more traditional, conservative and family friendly than the cities in his 2002 top five list (explain to me, with home prices starting at more than $200,000, could one have considered San Francisco, San Diego and Boston to be “family friendly”).

Has Oklahoma City proven the need to diversify while still striking a balance between these sometimes, but not always, different populations? And are there common interests and ties between these communities? Are they sometimes one and the same?

I’m not offering answers – just questions and a challenge to Richard Florida (not that he cares what I say) to give Oklahoma City another glance and go beyond simple statistics, anecdotes and perception. Mr. Florida, it’s 2010 and you last visited here in 2004. Go back to San Francisco, go back to Seattle, go back to Boston and San Diego. And then get a good tour of what’s going in Oklahoma City. You tell me if your measurements still work.

I leave you with this article from The Atlantic:

Why Oklahoma City Could Represent the Future of America
Sep 13 2010, 5:20 PM ET | Comment

The last time the United States suffered a recession this deep and painful, it was the Great Depression. That was the era of the Dust Bowl, the California pilgrimages out of Oklahoma that John Steinbeck etched into America’s memory with The Grapes of Wrath. Eighty years later, California’s housing market has run dry and Oklahoma is building river parks. As families gravitate back to the heartland, with its cheap homes and lower unemployment, the migration patterns of the Great Depression have turned backward. “It’s the Wrath of Grapes,” says Oklahoma City Mayor Mick Cornett.

One of the under-reported stories of the recession is the emergence of the Great Plains during the recovery. The central time zone largely avoided the highs of the housing bubble, and they’ve blissfully missed the lows, as well. But that’s not the only thing buoying Oklahoma.

This afternoon I spoke with Oklahoma City Mayor Cornett and Oklahoma Department of Commerce Secretary Natalie Shirley about why Oklahoma has fared so well during the recovery. Unemployment in Oklahoma City is 6.7 percent, three percentage points below the national average. It has the fourth most resilient housing market in the country, according the Brookings Institution.

Avoiding the swelling and crashing of the housing tsunami has been a primary cause of Oklahoma City’s success. How did they miss the wave? Shirley said the answer goes back to 1982, and Penn Square Bank. Penn Square was a small, risky commercial bank that exploded in the late 1970s and imploded in the 1982 just as falling energy consumption hurt oil prices and slammed the Oklahoma economy. The Savings and Loans Crisis followed, but it was Penn Square took down the energy industry and the banking industry.

“Over 100 banks closed,” she said. “The state ground to a halt. And the bankers today remember the crisis. They’ve developed very safe, very conservative banking practices since that catastrophic event in the early 1980s.”

Built on the dependable pillars of local government spending, military (Tinker Air Force Base is the top employer), health care and education, the city is poised for strong and steady growth in the next few years. I asked the Shirley and the mayor what they thought might be the next engine of the Oklahoma economy.

“We don’t really care,” she responded. “What we’re looking at is a balanced economy. We learned from the 1980s that having a one-trick pony just wasn’t going to do it. We’re looking at creating a more firm foundation.”

That’s when the mayor offered an fascinating re-casting of the new economy: “The 20th century perspective was that people went where the jobs were,” he said. “Today the jobs are going to go where the people are. Highly talented young people are coming to us because of the low cost of living. People want to work here.”

The bust revealed a scary truth: we can’t afford what very recently passed for the American dream. We cannot run up debt equal to 122 percent of our yearly earnings, as we did during the late aughts. That means Americans will seek out cheaper places to live, where high quality of life goes for a bargain. Today, the cities that can offer that aren’t the LAs and NYCs but rather the San Antonios and Oklahoma Cities.

Put another way: In an economy where people follow quality of living, and jobs follow people, cities with low cost-of-living will be the early winners in the recovery.

Indeed, they already are. Eighteen of Brookings’ 20 “strongest cities” (all except Washington and VA Beach) have average or below average cost-of-living, according to a new Wall Street Journal story. At a time when Washington can’t seem to get employers and employees together, employment has been sticky where wages and living have been cheap.

What’s more, Oklahoma has the highest entrepreneur levels of any state, according to a recent report from the Kauffman Foundation. Mayor Cornett says it’s easy to see why. “College graduates are moving to the metro area in high numbers because they see how far their money goes in housing and living,” he said. “You’re raising a generation of people who can’t afford their own house. The American dream is alive and well in Oklahoma City.”

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Comments

Are we attracting new ‘creative class’ to OKC, or are we just not chasing away the ones who have grown up here?

Have we attracted any employers that hire ‘creative class’ workers?

How many people have moved here from other places because of the ‘family-friendly’ environment? How many of them had jobs ‘follow’ them?

I don’t know the answer to these questions, and I’m not necessarily questioning your premise. I guess I’m just looking for amplification.

My own hunch is that we’ve gone a long way toward stopping the talent outflow, but I don’t think OKC is yet a ‘destination’.

Good questions Mike. And I don’t know the answers either.

I wonder how much all the numbers are propped up by a few large employers like CHK and Deveon. If they go away / bought out what would happen? More diversity seems like an important goal. Link above to Atlantic was broken for me, this one works: http://www.theatlantic.com/business/archive/2010/09/why-oklahoma-city-could-represent-the-future-of-america/62897/

Florida believed that the creative class fueled economic prosperity. He actually had the cause and effect reversed. Economic prosperity fuels the creative class. The creative class in CA seemed to be at a loss to respond to the economic collapse of their state as compared to OKC which, with a fairly stable economic situation, has become a viable incubator for all sorts of creative class projects (ACM, etc.)

The creative class is important. More important are the millions of regular folks who support the local economy by their hard work and provision of essential services. Beyond economics, great cities are havens for all kinds of people: families, singles, older adults, , 20 somethings, immigrants, blue collar, white collar, pink collar, religious types, and bohemians.

With OKC’s eclectic mix of industries, neighborhoods, and lifestyles, perhaps we do offer a safe place for all kinds of people.

Steve, look at all the typos in that article about why OKC could be the new big city or whatever. Whoever wrote that article is neither a serious journalist, an academic, nor a serious wannabe.

The reasons that OKC hasn’t imploded like much of the rest of the nation is because, as David points out, the city has a major reliance on oil and gas (commodities that have done pretty well during the recession all things considered) and the city never had a housing bubble or major economic gains like most the rest of the nation.

But none of this makes OKC a destination or a city anywhere near the level of vitality and importance of places like San Fran, Boston, Austin, etc. One pink-haired girl walking down a two-block “hipster” shopping area does not a creative class make.

OKC is not a diverse economy and does not promote the creative or thinking class in any way. The conservative political culture will always be a road block to a lot of “thinking/creating” people staying in OKC. Look at Mary Fallin dogging the Flaming Lips. OKC and Oklahoma is so lucky that the Lips hung around and didn’t bolt, but does the future Governor of Oklahoma appreciate this? Of course not. And that attitude will always work against any sort of “progress” in Oklahoma.

Steve:

One more thing, there are plenty of other cities that have a lower unemployment rate than OKC: http://www.bls.gov/web/metro/laummtrk.htm

No doubt you are ready to also declare victory for Bismarck, ND; Fargo, ND; Lincoln, NE; Midland, TX; Lawton, OK as also being the future of America. I mean, these cities have obviously got it right while San Fran, Seattle, Boston, etc. are so over.

A tidbit I like to note when reading generalizations about Oklahoma during the Dust Bowl era is that the population of OKC itself grew from 185k in 1930 to 204k in 1940. There was a migration dynamic that was not limited to an out-of-state exodus.

It is always postive to have others take notice of OK in a postive way. As you are aware we are hosting the World Creativity Forum in November. The world is coming to OKC. To be a part go to stateofcreativity.com or telephone
405.232.5570, Ken

Interestingly, Richard Florida is also a correspondent for the Atlantic Monthly, wherein the quoted article about Oklahoma City was originally published.

Digging into his more recent charts, The Oklahoma City metro area actually has a higher number of creative class folk, and occupations, than our population density suggests we should.

However, there’s no doubt The Rise of the Creative Class has definitely not played out the way Richard Florida originally suggested. He left out basic bread and butter issues, affordability for families, and the presence of work that weathers economic storms in his research – much to the detriment of his ongoing credibility.

More broadly, his frame may not even be applicable ten years on. And by that, I mean the premise of the creative class as a somewhat beleagured minority in the midst of, I suppose, a much frumpier, and far less enlightened service sector and manufacturing class of folk who collectively lead their cities to economic stagnation and elect politicians that are rhetorically unwelcoming to the very people who will drive economic growth in the 21st century.

This is the wrong frame. In truth, we’re all minorities in the 21st century – everything is a lifestyle choice: from having kids, living in the burbs, and attending Church on a regular basis; to being a childless gay/straight, bohemian urban-dweller. The cities that pitch the biggest tent and make everyone feel comfortable are likely to “win” – however we choose to define it.

Mary Fallin has already been elected governor? This will be a shock to Jari, who has a nasty habit of going against the declarations of pollsters.
Interesting CAPTCHA on this one: “reasons scarme”

Correction for you, Steve. Just got back yesterday from San Francisco and it is hardly in ruins. The city is as vibrant as it has ever been. It’s unemployment rate is always above the national average because of the amount of people drawn there and the number of bums.

As for Fallin, she better work hard. Oklahoma elects democratic govenors probably close to 75% of the time. You can’t gerrymander the whole state.

Matt, I didn’t say San Francisco is “in ruins.” What I am saying is housing defaults are high, unemployment high, mortgages are under water. The figures don’t lie – San Francisco and the State of California are in bad shape.
I find it interesting this post is taken as an attack on the creative class – being an author, wouldn’t I be a part of that creative class? Or do I need to wear a nose ring to qualify?
What I am doing is questioning the cult of Richard Florida and suggesting that it’s not a clear cut issue here. Go read Michael’s comment – it’s the most interesting take on this I’ve seen in this thread.

I wasn’t coming after you, Steve. Sorry you took it that way. I really totally agree with your post, and Michael’s comment for that matter. It is pretty obvious that Florida had a concept that helped him write some books and make him some money. Wish I had an idea like that.

I just had a different take than what you said about SF. I didn’t see a lot of homes or townhomes up for sale. I didn’t see closed up shops. I stayed in Cole Valley in the heart of SF. Maybe it is in bad shape but it sure didn’t look like it.

Another point: Why, you ask, was I in SF? My buddy got married out there and I was in the wedding. I was the only person in the wedding that doesn’t live in SF, but I went to school with all of those guys at OU. The talent drain is still flowing.

Initially, Florida would have defined creative class by nose rings and tattoos. He has been forced to broaden the definition to include nearly every professional who uses their brain to work…which in turn, makes his ideas less meaningful.

So interesting that you’d write about Florida because I was just reflecting on his work the other day and thinking about the Creative Class. You’ve asked some great questions. I enjoyed most of the comments.

What I remember about that time when Florida’s work was being hyped was that OCU conducted a study on public funding for the arts. Many Oklahomans began to see public funding for the arts as not some fringe off shoot of the NEA, but as something that drove local economic development and invited private investment. For every $1 invested, OCU Business school determined a $3 or $4 return in private dollars. Florida’s study was instrumental in helping shape arguments to support continued public funding for the arts.

Since those early days when Oklahomans dared discuss the arts as components of economic development, private investment in the arts in Oklahoma has increased significantly. So, while Florida’s premise seems to have utterly failed, Oklahoma used the information he provided to fortify existing arts organizations and make way for new creative ideas.

Public funding for the arts has paved many initial bricks in this town. It has done so for – what – 40 years now? Never in the history of Oklahoma has so little gone so far and done so much.

Matt, all is good with us, we’re having a good discussion here. I was recently in Colorado Springs. It was beautiful there – and a superficial survey would indicate all is well. But I did research before going there, and with a more critical eye, I saw the signs of a city in distress – dark street lights at night, unmowed medians, etc. I’m sure that at first glance all appears well in San Francisco – but the numbers paint a different picture. And it was those numbers that Florida relied on so heavily to make his case.
Maybe he should have simply stuck to a much simpler message – that having a vibrant creative class adds to a community’s well being. That’s a message that was being pushed in OKC a half century ago by Nan Sheets. I suspect Florida felt he had to churn some numbers to sell books and charge big fees for his speaking tours.

Matt, I had a friend that moved here from Dallas, graduated H.S. and took off to Austin to play in his band because “that’s where things were happening.” Guess what, it’s a year later, he and his entire band have left Austin and now reside . . . in OKC where all are attending the ACM.

The drain may not be flowing as fast as you think.

In truth, we’re all minorities in the 21st century – everything is a lifestyle choice: from having kids, living in the burbs, and attending Church on a regular basis; to being a childless gay/straight, bohemian urban-dweller. The cities that pitch the biggest tent and make everyone feel comfortable are likely to “win” – however we choose to define it. — Michael Heaton

This statement is brilliant and is perfect for our city.

I’m not an economist, nor do I have any desire to be one, but here’s my take. Richard Florida was right…in 1998. Did creative industry add to the explosion of the hot spot cities he mentions at the expense of cities reliant on heavy industry? Yes, to some extent, they did. Product design and marketing are two things that Americans do really well, so they didn’t get outsourced as much in the 90s. What I think he failed to notice was that the success of his creative class (which is a misnomer anyway) was dependent on three other sectors booming in these cities: banking, higher ed, and real estate. Banking and real estate take a beating, and you’ve got yourself a one legged stool. Higher Ed isn’t looking much better with the decreasing availability of student loans and cutbacks in state budgets…Looking at his list again all these years later, it seems even sillier to me. I doubt that anyone would seriously argue that Houston is rich because artists want to live there, and Providence down at the bottom is home to one of the best design schools in the world, Rhode Island School of Design. “Does not stand up to critical scrutiny. B-” is what I would write on his essay.

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