The Californian Economic Engine

Californian companies are starting to do the process of insourcing. This is where a company creates satellite offices in nearby cities, such as Phoenix, Denver, Salt Lake City or Portland to do development. One of the reasons is ease of communication; most of those cities are a day flight away from San Francisco. Another concern with outsourcing overseas is that a vendor is intimate with your business logic.

I thought the lower rent and salaries in these cities was a major consideration but it is not. The Californian labor market is tapped out of quality technology candidates and smaller tech companies are having trouble competing with the 'cool' billion dollar companies like Google* for skilled workers.

Apparently the satellite cities have similar quality candidates in the technology labor market to California but the competition over them is not as intense as in the Bay Area. Google is not immune to this process either and has similar satellite offices.

So the Californian technology economy has exhausted the Californian labor market and is now in the process of stressing the labor markets in neighbouring states such as Arizona, Oregan, Utah and Colorado.

The Californian economy is a wonderful mix of technology, entrepreneurism and adventurous capital markets. It is not only the American technology engine, but the globe's technology engine. If its GDP is split out and compared to other nations it has the eighth largest economy on the planet.

So any Australian Diasporans thinking of coming to America to work, you might want to hit California and its labor market first. Your skills will be in demand.

Given the stresses on global labor markets for skilled workers the other thing that needs to be asked is; will a tertiary degree replace the work visa as the document of entry into an overseas economy?

This process is already starting to happen in Australia and Canada.

* Apparently VMWare is currently on a massive employment bent.
A panel in Massachusetts determines that non-competes are bad for innovation. Their west-coast rival, California, does not enforce them and it has not hurt tech companies there. Personally I consider them a restraint of trade and believe a market economy should regulate to prohibit them.

Lexus Lanes

When I was in Washington DC there was discussion of putting in pay-for commuter lanes in the same manner as HOV lanes. Naturally they got the moniker Lexus Lanes due to the impression that only the wealthy would pay for them.

Time lapse traffic from splorp's photostream

New Jersey originally had HOV lanes for high occupancy vehicles but in 1999 when I first started commuting down Rt.287 they removed them. It seems they caused more trouble than they were worth and it was simpler and easier to open up all the lanes to general commuter traffic. New Jersey did a pretty good job of keeping the traffic flowing.

California's Bay Area is thinking of introducing Lexus Lanes. It is a tough thing to bring as public roads are already payed for through a mix of county, state and federal taxes. They are a public asset that have already been payed for. So introducing a free market aspect to them, what is seen as a shared resource, is difficult to do. As always the money goes to something altruistic - like schools, paying for road maintenance (which is already financed through taxes), etc.

The other issue facing policy makers is that roads are very expensive and congestion is real. It will not get better and the car remains the most efficient means of transportation, and will continue to be so.
adam: Cannot agree that the car is the most efficient form of transportation. It is only efficient under a certain regulatory environment which encourages sprawl and where city design lets cars choke out less armoured or more mass efficient options.
cam: Yeh but mass transport requires a mass of people going to one spot. Which is fine in a city, but not anywhere else and even then cities are spread out anyway.

A car also gives people what they want, which is a form of privacy, the ability to go where you want when you want to and an element of personalisation. You dont get any of that with mass transit.
adam: Well, towns can be more city-like, or more village-like if you prefer, without needing the vast amounts of people in cities. Eg, they can be built around walkable centres rather than around car parks, the open sewers of 20th century transportation. As for your other points, they are all certainly reasons that people drive cars, but they don't have much to do with efficiency, which is the point I was taking issue with.
cam: I think it is more efficient. I dont have much time these days and I would have several hours less in a day if I used public transportation. A train always requires a connector, whether bus, etc and they have stops for each passenger. I used to dread catching the train from Central to the Hawkesbury during the day as you would get stuck on one that did every stop between Redfern and Blacktown - twenty something stops. Took forever. Was faster to drive.

Unless life slows down cars offer people the most efficient form of transport in terms of time IMO.
adam: But look at the choices you made when you chose where to live, and when the city expanded out to the place where you live, and when the company you work for chose where to put it's office. If Phoenix is anything like Brisbane the assumptions were that the car was and always would be the best way to get anywhere. If you live in a public transport black hole of course driving is more efficient.

It's not even true of Bris anymore depending on where you chose to live - if you choose to live near a train line and work in town it is cheaper and quicker not to drive and park. Or live in town itself for that matter and walk to work.

Similarly when I chose my current flat I knew it had to be on a train line, with no changes, because I hate changes and I hate being stuck in traffic in a car or bus. It's 40 minutes door to desk because I chose to live a bit further out. This is easily quicker than driving through peak hour traffic and parking from this distance. I hate looking for parking, I would rather park five minutes away than spend five minutes looking for parking.

It's not going to be true of everyone but when a network is in place, and you are near it, it is far quicker and cheaper than driving.

Again though - and I guess after that spiel it is obvious I'm not the biggest car fan - none of this changes the legitimacy of your lifestyle choice to live in a particular location and choose the trade-offs associated with that.
cam: That is only true when public transportation is 'mass'. My example of the Richmond Rattlers in Sydney is a good example of how quickly it becomes inefficient for the user once it ceases to be mass transport.

There are just too many people doing too many things for mass transit to be efficient all the time. Phoenix is a car city. There is bugger all mass transit here. A light rail has gone in between Tempe and downtown Phoenix but that is about all. I probably wouldnt use it unless it dumped me right by my office, and even then I probably wouldnt.

The company I am with is moving near to the airport for production/shipping reasons away from the 101. So the transportation desires of its workers don't even rate.

Californication

A flight from Arizona yesterday evening took me over the deserts of the South-West, past the valley of wind turbines, and dropped me off at Los Angeles. It is a quick trip and after the sorting of a rental car and GPS, I ended up in Anaheim right next to Disney. Close enough that their nightly fireworks were incredibly loud.

The next day we traveled down the Pacific Highway - a name familiar to Australians - and ended up at the beach at Oceanview. Like coastal Sydney, the southern Californian coast is blessed with wonderfully temperate weather and great surf. The next hours were spent body surfing, sunning, talking before heading off to eat tacos, burritos and quaff down Mexican beer. Not bad.
Phil: Cam, I didn't take up residency there, but I was in the States with work for 2 occasions - 1983 and 1988.

The first in '83, LA was preparing for the '84 Olympics - LAX in particular was in turmoil, with a temporary inflatable terminal building while extensions happened. Rented a small condo at Marina Del Rey for that stay.

2nd stay in '88 (hitched by then) we stayed at Manhattan Beach. Both very nice communities.

Air quality often left a lot to be desired. But I found the people friendly and polite - 'specially to Aussies. There was no crime in those areas (though I did get off the Harbour Freeway at the wrong spot once and got worried about the ghetto neighbourhood I ended up in).

But I have very positive memories of the people and place.
cam: Phil, Yeh I really like America, have been here nearly ten years now. I am pretty poorly travelled on the west coast of the US though. So I am enjoying being over this side of the country so I can have a good look around.

La Jolla, CA

I made a rookie mistake at the beach yesterday which has left me with half of my face a bit tender and burnt. I protected my body amply with spf-30, but not my face sufficiently. The east coast of the US leaves you with bad habits when it comes to the sun. I having been living in a desert city for seven months, so really, no excuse.

We spent yesterday afternoon and evening in La Jolla, CA [pronounced la hoya]. It is a wonderful seaside community, kind of Coogee-ish, for lack of a better analogy. The town has a colony of sea lions that hang out on the rocks there. A couple of them were braying loudly in a dispute over a resting place on a rock.

The bay at La Jolla had buoys out in it, approximately half a mile from the shore. A group of swimmers numbering about 200 maybe, swam out to the buoys and back. They gathered up in the park in a mix of swimsuits and wetsuits. I thought that was wonderful. If I was living in there it would be a great way to unwind at the end of the week with a mile long ocean swim.

The shore line was a significant public space beyond the normal swimming and walking. The park had a big blow up screen on it for a showing of the movie 'Field of Dreams'. It was for anyone there, and as a consequence there were vendors there with ice cream, face painting etc. There was also a group of people dressed in green, blowing bubbles, holding hands in a circle - and even one girl with fairy wings dancing around - typical California.

The hill at the top of the shoreline had a mix of trendy and upscale restaurants and shops. Including a Peter Lik gallery. The mate I am with saw his gallery in Hawaii and nearly pulled the trigger on a photograph there. Lik's work is a bit too candy coloured for me, but I can see how people would like and be drawn to it.

The Californian coast has very even weather and many of the restaurants have open patios, including one that is nothing but a patio at the top of a building with a wonderful view. It was an hour and a half wait, which was just too much, so we hit another restaurant further down the street.

The fare included a couple of local micro-brews.

All Australians Can Surf

All Australians can surf; except for me. We did surfing lessons at Carlsbad, CA on saturday. The surf instructors were mainly servicing the Four Seasons group, but they allowed me and a mate to jum p in and take part. By the end of the two hours I was happily catching waves with a decent probability of success.

I carry an unfortunate physical similarity to Peter Garret in that picture. Being tall, lanky and bald will do that I guess. It was physically tough, especially as a beginner you get thrown around a lot by the waves. But it was a gentle swell, even so, I was the only one who went the full two hours, the rest got tired or had enough after about an hour or so.

My mate was kind enough to stand on the shore and take some action photography which largely consisted of me biting it.

Great fun. Not much chance of taking up surfing in Phoenix, desert cities are tough for that kind of thing.

More: Photos of Carlsbad.

Me on Manhattan Beach, Los Angeles. Photo by M.

Our shadows on Manhattan Beach, Los Angeles.

A winery in the Santa Ynez valley. More on flickr.

Buttonwood Winery, Solvang CA. We left with their Syrah Rose. More on flickr.
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