Big Government is touted frequently as a solution to lift stagnant economies out of recession. But a new report shows that “little government” regions may avoid recession in the first place.
The San Antonio Express-News highlighted a report on on America’s “recession-proof cities.” Out of America’s top 50 metropolitan areas, San Antonio ranks #2. Austin is #3, Houston #7, and Dallas-Fort Worth #10.
The cities were highlighted based on recent employment and housing data. Texas’ cities fared so well because we continue to have low unemployment and strong job growth in key economic sectors, while home prices are growing steadily from modest levels.
Texas’ commitment to competitiveness has brought 1.6 million new jobs here in the last decade. Texas cities have not depended on the construction or service sectors to propel their growth; low taxes, low government spending, and a favorable regulatory climate have cultivated a strong and diverse economic base.
That ties in with the housing piece. In general, our cities have not restricted the construction of housing with anti-sprawl measures or excessive zoning/building standards. Suburban development has kept prices reasonable, which in turn, minimized the appeal of speculation and necessity for exotic mortgages that are ravaging the coasts.
With plentiful jobs and sensible housing, companies want to do business here and people want to move here. This isn’t to minimize the pain of those Texans who may have recently lost a job or are saddled with a bad mortgage. But those events are much less likely to happen here, and if they do, you’re much better off here than in California, or Florida, or Phoenix, or Las Vegas, or the Rust Belt, or …
– David Guenthner