Question

1. Richard Florida describes “The Big Sort.” What forces propel this sorting? What are the implications of the Big Sort? 2. Brueckner describes a choice model of homelessness and policies to address homelessness. In particular, he says that well-meaning policies like minimum dwelling size can backfire. How can this happen? 3. Glaeser and Gyourko say that the mortgage interest deduction does not make good policy. Why, according to them, is this the case?

Answer 1

1. Richard Florida describes “The Big Sort.” What forces propel this sorting? What are the implications of the Big Sort?

The idea of "The Big Sort" states that for every type of production activity there is an increasing concentration of scenes. For example, in Los Angeles, the entertainment industry is concentrated while the technology industry is clustered in the San Francisco Bay Area. This idea also states that each town (or location) will have its own character based on the nature of the thinkers it attracts and do-ers. Additionally, Richard Florida talks about how, thanks to cheaper and convenient movement from one city to another, "The Big Sort" has become bigger and larger with the time in American economy.

Florida disagrees with the fact that advances in information technology have made the world "flatter" which would open up opportunities for people living in remote areas (with no access to opportunities). He believed the professional connections would create spikey cities and act as a barrier of participation for people residing in other cities. In the entertainment industry , for example, entering this industry is not quite hard for an individual located in Los Angeles compared to individuals located far away from it.

Some of this idea's implications include:

1) Individuals who have no character will be left behind and marginalized, suffering most economic problems.

2) Individuals who can relocate in accordance with their respective characters (or personalities) will be the winners.

3) The ability to move from one town to another plays a key role in influencing one 's chances of being connected to others in the spikey cities.