What are the forces moving the Minnesota economy? Adam Belz tries to identify the trends and show the connections between Minnesota and the larger U.S. and global economies. You can connect with him on Twitter: @adambelz

Posts about Economics

Opening Belz, July 30

Posted by: Adam Belz Updated: July 30, 2014 - 8:34 AM

U.S. GDP grew at 4% pace in second quarter – Commerce Department
Silt from heavy rains blocking Mississippi River to barges at Winona – Winona Daily News
Tech firms leave for the Bay Area for connections more than for talent – StarTribune
Press play and watch health care jobs take over the economy – BLS
Best Buy’s Joly says tablet sales are “crashing,” PC sales up – re/code
Another piece on what’s wrong with the Illinois economy – Chicago Magazine
One reason: manufacturing recovery lags in Chicago area – Chicago Tribune
Germany has trouble attracting high-skill immigrants too – Irish Independent
A discussion of the importance of not sitting – Bloomberg
Jay-Z and Beyonce are making $4 million per gig on their tour – NY Post

Opening Belz, July 29

Posted by: Adam Belz Updated: July 29, 2014 - 9:32 AM

Hedge fund Casablanca isn’t the only problem for Cliffs Natural Resources – Motley Fool
Battle for poor shoppers fuels Dollar Store deal – WSJ
Polaris launches 3-wheeler called a Slingshot, new business unit – StarTribune
Ranchers in ND say mineral rights dominate surface rights too much – Fargo Forum
Cherokee, Iowa, prepares for loss of 450 jobs at Tyson – Sioux City Journal
Tensions arise in midst of Sioux Falls multi-family building boom – Argus Leader
Maps: In May, cold weather in Upper Midwest was stunting crop growth – Kansas State
Medtronic to pay $105 million for Texas firm – StarTribune
POTUS, last week: firms who move their address overseas are “corporate deserters” – New American
House Dems are making noise about doing something to these companies – Bloomberg
De Blasio administration cracks down on juvenile subway dancers in NYC – NY Times

Cleveland Fed: Minneapolis among U.S. cities gentrifying the fastest

Posted by: Adam Belz Updated: July 28, 2014 - 11:24 AM

Minneapolis is gentrifying as fast as any city in the country.

In a trend that started during the housing boom and continued after the recession hit, incomes in Minneapolis neighborhoods are growing at a faster pace relative to the city's suburbs than in any center city/metropolitan area other than the Portland, Ore. metro area, according to analysis of Census data by economists at the Cleveland Fed.

Gentrification, economists Daniel Hartley and Daniel Kolliner point out, was on the rise pretty much everywhere in the run-up to the financial crisis. “Looser lending standards, which were prevalent at the time, may have contributed to the trend,” they write.

Here’s how they measured gentrification, which is a bit complicated but worth pasting in its entirety here: We selected a set of 59 large cities, all of which had a population above 250,000 in the year 2000 and the largest population of their respective metropolitan area (many metro areas include more than one city). Then we ranked the census tracts of each metropolitan area by the average income of residents in the tracts. The rankings are percentiles, running from 1 to 100. Finally, we took the mean of these rankings for the tracts that are located in the largest city of the metropolitan area (referred to as the principal city in the charts below). This mean gives a sense of where the tracts of the largest city as a whole fall in the income distribution of the metropolitan area. For example, the average tract in the city of Virginia Beach was at the 66th percentile of all of the tracts in the Virginia Beach-Norfolk-Newport News metropolitan statistical area, while the average tract in the city of Newark was at the 18th percentile in the Newark, NJ-PA metropolitan division. This means that the average tract in Virginia Beach is higher income than the average suburban tract, while the opposite is true in Newark.

The city that gentrified the most up until 2007 was Atlanta, followed by Washington, D.C., St. Louis, Denver, Seattle, Portland and Minneapolis.

But from 2007 to 2010, Atlanta stopped gentrifying, and Portland, Minneapolis, Seattle and Denver took the top four spots.

It's interesting that the top four cities include Minneapolis and the three cities that economic development leaders most often compare the Twin Cities to. Gentrification can be a dirty word, but the cities with the fastest rate of it are among the healthiest in the country, economically.

I'm trying to get the neighborhood-specific data for Minneapolis, which should offer detail on which neighborhoods are seeing the fastest average income growth.

Opening Belz, July 28

Posted by: Adam Belz Updated: July 28, 2014 - 10:14 AM

How truck sales track the economy – Washington Post
In subprime bubble for used cars, borrowers pay high rates – NY Times
Cliffs Natural Resources fights for its life against hedge fund – Duluth News Tribune
Race for N.D. agriculture commissioner all about oil – Reuters
Germany sees an economic opportunity: immigration – Washington Post
A minimalist map of Milwaukee – Journal Sentinel
Portland, Minneapolis, Seattle & Denver are gentrifying the fastest – Cleveland Fed
Look to the Swiss for a forceful approach to executive compensation – StarTribune
Oil prospectors have shifted focus to the developed world – WSJ
American economic textbooks used to overstate Soviet GNP growth – Marginal Revolution
The Great Lakes are at the mercy of invasive species brought by ballast water – Journal Sentinel

Opening Belz, July 24

Posted by: Adam Belz Updated: July 24, 2014 - 11:42 AM

Big problems in the global steel market, China edition – Yahoo
Vikings won’t enhance stadium to make it safer for birds – StarTribune
Interesting, wide-ranging QA with Larry Summers – New Republic
Ethiopia becomes China’s China in search for cheap labor – Bloomberg
Southeast Wisconsin hospitals are starting to control costs – Journal Sentinel
Minnesota names marijuana program director (it’ll be a business, folks) – StarTribune
Upstart outboard engine maker ditches gasoline for propane – Journal Sentinel
U.S. to railroads: Remove or retrofit old oil tanker in 2 years – StarTribune
Winona chain-maker Peerless sold to Japanese firm for $80 million – Winona Daily News
Somali singer, politician who lived in St. Cloud murdered in Mogadishu – St. Cloud Times
A visit to Sana’a, the old, beautiful and strange capital of Yemen – Idle Words
Kansas City plans $75 million training facility for U.S. Soccer – KC Star

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