Recession Hurting U.S. Cities At "Radically Varying Levels"

The recession is hurting U.S. cities at "radically varying levels," which will lead to an uneven economic recovery, according to a new study by the Brookings Institution.

"This is not one national recession. It's felt barely at all in some parts of the country, and it's felt deeply and significantly in others," said the Brookings Institution's Alan Berube, co-author of the report, in an interview with the Huffington Post. "For the next several months we'll have to pay attention to several places that look like they're not poised to recover anytime soon."

The survey of the nation's 100 largest metropolitan areas ranks cities from strongest to weakest economic performance according to six "key indicators" -- employment, unemployment rates, wages, gross metropolitan product, housing prices, and foreclosure rates.

San Antonio, Tex. came out on top, and Detroit, Mich., with its 14 percent unemployment rate, is in last place. The Brookings Institution's "MetroMonitor" site provides a list of city profiles and six interactive maps. The data will be updated quarterly.

The report finds two distinct Manufacturing Belts (Berube said Brookings went with "Manufacturing Belt" instead of "Rust Belt" because, "We have friends there who have been trying to shed the rust image for some time"). One belt spans Midwestern metro areas decimated by the auto industry and the other is in the Northeast, where manufacturing in aerospace and plastics hasn't seen such a decline. And there are two "Sun Belts": a bad one in housing-wrecked areas around Florida and Arizona, and a better belt stretching across states like New Mexico, Texas, Oklahoma, Arkansas, and Louisiana, where there have been modest home price increases.

Berube said the federal government should pay attention to the uneven effects of the recession in its efforts to revive the national economy.

"The point of the stimulus package was, 'Let's address an aggregate gap in demand and spend a certain amount of money in a certain amount of time.' It was not all that tailored for the specific problems that individual metro areas faced," Berube said. "We want to keep Washington's eye on the ball. It's been an uneven downturn it's going to be an uneven recovery as well."

The U.S. Conference of Mayors complained this week that urban areas haven't been given a large enough share of stimulus funds.

Here's the list of the twenty strongest and weakest metropolitan areas:

Comments

[zeeshan809]

It is not even clear if US would get out of this recession in one piece.


My blog:
http://next-world-war.blogspot.com

[graci3la]

from http://online.wsj.com/article/SB123051100709638419.html?mod=googlenews_wsj: "When the going gets tough, he says, wealthier states will withhold funds from the federal government and effectively secede from the union. Social unrest up to and including a civil war will follow. The U.S. will then split along ethnic lines."

I disagree with his prediction that foreign powers will lay claim to the new nation-states, though. I don't see them losing any sovereignty.

I also don't see the US splitting along ethnic lines. Those can't really be drawn, anyway. I think it will be more of a cultural split. California/OR/WA culture is different from, say, GA/NC/SC.

TX seems to be one of the wealthier states right now, and they've already publicly discussed secession. The only civil war I can imagine would involve armed rebel groups from places like TX or MT. Your average American won't be taking up arms.

[blue42]

I live in New york City and can't tell its a recession here people are still shopping and going out to dinners and movies and broadway shows. i was over in time square the other night hangn out and it was jam packed with tourist and new yorkers so we arn't feeln the recession the way most of the country is. my heart goes out to da people of detroit though. and yet with all of that my city didn't make the top 10 or 20 is there a bias against because of wall strret. lol

[zakwouldhave]

I live in Austin and life is good for many reasons. A question for those republicans outside of Texas- Does anyone who voted for Bush/Cheney ever think they actually thought much about the midwest or California?
And yet this country elects a failed oilman from Texas President of the United States of America. Twice.
May you live in interesting times indeed.

[robertfelsnik]

I live in California, and let me tell you, people are hurting. What company's are doing to their employees to make up for their "losses" are ridiculous. Basically, giving us more work and cutting our pay. And then they have the nerve to say, "Aren't you at least happy that we didn't lay you off?" Absolutely not. Because now i'm working more and getting paid less all for what? To deal with this type of irritation at work: http://www.youtube.com/watch?v=2fZm2-mb3MI I for one can't take it anymore. Someone needs to step in and do something about the guys at the top, because they are the ones who screwed up the system. So they should have to pay for it, instead of everything coming out of my pocket and out of my time.

[GordonA]

Yeah, it's some one else's fault. You and the politicians you supported had no part in it. The companies you are referreing to have the margins to pay the wages you wish them to but are instead hoarding it all for evil executives. Man, it is great to have scape goats huh? Nothings my fault either!:-)

[nomorefed]

Take back the trillions of $$$ given to the banks, who just sit on it and make it totally ineffective then start government incentive to create realistic industries that give employment and generate real productive income, some of which would hopefully be from exports.

Every other country, especially China and most of Europe have goverment incentives to protect it's industries. No matter what you call it it's a form of protectionism and its inevitable. We should stop being naive and take care of our own house. The only ones who win if we don't are the multinational corporations who don't care where they get their hand out.

recommended reading: http://www.bit.ly/12NCJR

Every other country, especially China and most of Europe have goverment incentives to protect it's industries. No matter what you call it it's a form of protectionism and its inevitable. We should stop being naive and take care of our own house. The only ones who win if we don't are the multinational corporations who don't care where they get their hand out.m

[GordonA]

Yeah, other countries are all against us anyway so let's fire up a global trade war and kick butt! Eliminating trade that is the livelihood of millions of people foreign and domestic will set things right. Economic concepts like comparative advantage are BS anyway. Let's all just admit that the people in our country are more important than those in in other countries and remember that we don't need them or their good will anyway. USA! USA!

[nomorefed]

Take back the trillions of $$$ given to the banks, who just sit on it and make it totally ineffective then start government incentive to create realistic industries that give employment and generate real productive income, some of which would hopefully be from exports.

Every other country, especially China and most of Europe have goverment incentives to protect it's industries. No matter what you call it it's a form of protectionism and its inevitable. We should stop being naive and take care of our own house. The only ones who win if we don't are the multinational corporations who don't care where they get their hand out.

recommended reading: http://www.bit.ly/12NCJR

Every other country, especially China and most of Europe have goverment incentives to protect it's industries. No matter what you call it it's a form of protectionism and its inevitable. We should stop being naive and take care of our own house. The only ones who win if we don't are the multinational corporations who don't care where they get their hand out.

[DakotaMinnesota]

Gee, look at all those oil towns in the left-hand column...

[StevieRae]

Precisely because this "depression-like" recession isn't national in scope, we're in that proverbial quandary of not being able to motivate people more fortunate, to support efforts including tax money for those who need the help.

It's like driving down the highway with horrible auto accident only to pass it uttering, "but for the grace of (fill in) I could have been in that accident."

"It's not impacting me so why should I be concerned."

Oh yes, I forget, we're suppose to be a Christian country.

[BigBagel]

It's mot tax money. It's borrowed money.

[illusionpainter]

I agree with you "StevieRae". It all boils down to the cause of this whole Depression anyhow, ((((((GREE­D)))))))))

[GordonA]

Blaming greed for recessions is like blaming gravity for plane crashes.

[martiniandabotoxchaser]

If you are laid off, your city is at the bottom of list.

[DenveRockwell]

That's about as well as it can be put. My city (Denver) is neither in the top 20 or the bottom. But I've been laid off now for 6 weeks, and have had two promising interviews, neither of which I got called back on.

Denver, to me, is in last place.

[gfs5541]

To be honest, I would take a bulldozer and demolish every abandoned house or/and neighborhood, clean it up and let the grass grow again. It would save the banks having to pay for the upkeep.

[dublin62505]

I agree with your sentiments. However, the banks do not do ANY form of upkeep and are not in the property management business. They could give a rats arse if a foreclosed home has turned into the neighborhood abomination. They are somehow exempt from paying homeowners dues.. The rest of us in these heavily foreclosed neighborhoods get assessed extra by the HOA to cover cable, common ground maintenance etc. costs. Many people in my neighborhood, in order to preserve their own properties have had to keep up the foreclosed home lawns next to their homes. There are several (recently built homes circa 2006/07) in my neighborhood that are actually condemned properties by the county.

[poster1122]

Actually, much of your post is not true--at least not in California. In particular, the part about HOA fees is absolutely not true. The reason is that a property that falls behind in its HOA payments can have a lien placed upon it by the Association. The bank can only realistically sell the property if the title is clear. A lien prevents the transfer of clear title.

The problem HOAs have are properties that are in default but NOT yet foreclosed. Here, the owners are still responsible for the association fees, not the bank. But the owners in these cases are on the verge of foreclosure anyway, so most just don't bother paying the association fees.

[kstuff]

Michiganders love Ohio. It's Ohio State that we can't stand.

[tbrnotb]

Go Buckeyes!

[Pearlswan]

Wow, Texas is doing well compared to the rest of the country. I wonder if there is any correlation between the good fortunes of Texas and the fact that we had a Texan in the WH for the past 8 years? Could it be more evidence of crony capitalism at work in America or what? And, California, the great competitor of Texas is doing so poorly too. I wonder if those Texans from Enron were out to bring down California so Texas would be more economically sound than the state's no. 1 competitor, CA. Or, could it just be all that oil business in TX-OK-LA that has those states faring so well in this report? I can't help wondering if Bush really was a great success and the rest of America was duped into being the great losers. Its boom time in Texas and doom time in California. Surely, this didn't happen overnight.

[runfastandwin]

I think it's more a matter of, California flew high and fast while Texas was left in the dust, now California is coming back to earth while Texas is right where they were to start with.

[callings]

what wasn't worth much to begin with still isn't. this is a surprise?

[tbrnotb]

You need to look back to the summer of 2001. That's when the energy companies, led by Enron and those wonderful folks in Texas, ripped California off for billions in energy futures. That was the summer of rolling blackouts that saw Grey Davis and his administration get hoodwinked on the taxpayers dime.

They took the money, the governor was impeached and Arnold was elected.

Then 9/11 happened and we never heard another word about these things. Not a word about the fact that Califonria had not "built enough energy plants" and we were paying the price. (The cause for this crises.) No investigat­ions....no nothing. Just billions of dollars flowing from Sacramento to all those Texas energy barons. Just another instance of corporate capitalistic greed we're all paying for......oh wait.....Texas is doing just fine, thank you. They might even seceed from the union. Just like rats deserting the sinking ship they did their best to sink. George, please don't leave the state. You're not welcome here.

[RobinSeattle]

California is still the eighth biggest economy in the world and is likely to remain so. It has had double digit unemployment in my lifetime before and recovered. The main problem is what to do about the budget and services.

By the way, since Texas is apparently now doing so well, I guess you won't mind taking California's illegal aliens off their hands since immigrants tend to go where the money is. Enjoy!

[DungBeetle]

No. Texas is an energy economy. Oil is high. Life is good in Texas.

[SueInCA]

and the air is choking you

[Blurp]

But you have to live in Texas.

[4TJefferson]

Well, Texas and ENRON stoll $20 billion from California playing games with the electricity grid. They should be doing good with their ill-gotten money.

[alumtrix]

try making your own electricity for a change.

[SueInCA]

thye also stole from enron employees but that is what republictards do best steal

[T Pol]

It's more that Texas is a large and highly diversified economy: military, healthcare and education ... three industries with the greatest stability. Tech, research, energy...volatile, but high earning when times are good. Add in tourism, too. Wages and housing haven't had the boom-bust-boom-bust vicious cycle, but have stayed on a fairly steady course. The economy isn't dependent on how many jewel-encrusted toasters or golden-whipped lattes were sold.

San Antonio felt the recession, but nowhere near as deeply, so its recovery is going better.

Back to basics, folks. If I had a car dealership, for example, I'd be taking what I could to build the service and parts end, sell used and alternative fuel vehicles, etc. Time to reinvent ourselves.

[GiannaX]

"military, healthcare and education" and not to be left out, the largest prison system in the country.

Tourism, really? interesting. What tourism hotspots drive the Texas state economy?

Funny, I've lived in California all my life and our economy has never been "dependent on how many jewel-encrusted toasters or golden-whipped lattes were sold." You must be careful not to buy in to those silly little urban legends. lol

[kdubbg]

Californias economy is about as diverse as it can possibly be. Compared to California how large is Texas's film industry? Its wine country? It's agribusiness?

Of the top twenty biggest firms based in Texas, half of them are in the oil industry.

[TruthmongerII]

The economy's been deteriorating for over thirty years. Europe has the same problem -- not enough manufacturing jobs & too many poorly-paid service jobs. That's what capitalism does to its victims: it kills then moves on. It's a wonderful economic system & still a major religion in America where the zombies crow its praises.

[SC341]

Capitalism is not the problem, globalization is the problem.

[graci3la]

Globalization is inevitable. Economic systems are not.

[dansup]

with the possible exception of Austin wouldn't live in any of the cities mentioned, best list or worst list!

[gopSTEALSyourTAXmoney]

SAN ANTONIO...#1 HEAVILY HISPANIC--­-LIBERAL--
AUSTIN TX....HIGH PERCENATGE OF COLLEGE GRADUATES-­----LIBERA­L
EL PASO---HEAVILY HISPANIC----
ALBUQUERQU­E---HEAVIL­Y HISPANIC----

[gopSTEALSyourTAXmoney]

GO LIBERAL HISPANICS!
YOU HELPED MAKE THOSE CITIES THE BETTER METRO AREAS!!!!

[alumtrix]

I'm chuckling at your screen name because the reason TX is doing well is that we don't have a state tax. and of course we've been run by repubs. I'm not sure how well publicized this is but Ann Richards was the last Dem governor we had. She would still be in office if she had not decided to go to this Harley-riding, boot-wearing Texan image. After she woke up from her face lift surgery, she was wearing a new pair of boots in her hospital bed so that she could look tough. She asked the doctors how the surgery went and she never recovered when told that it went so well, they were able to make the boots she was wearing with her extra skin.

San Antonio - simply a tourist town, no real industry to loose.
Austin - smaller town with high government employment and some computer industry
Houston/Dallas/FW - More republican leaning although Houston is moving to the left. Both are diverse in the industry with space, medical, oil and gas,

[linfull68]

But having lived in Austin back in my younger days, there was never a better street than 6th street....SBSW!!

[USBrit]

Hey, here in GA, also run by Rebumplicans, we have an unemployment rate higher than the national average, lousy public services, some of the worst traffic in the nation in Atlanta (#4 in the nation for road rage! woo hoo!) and developers that run the legislature under what amounts to highest bidder auction for our politicians, where oddly enough the rich own them lock stock and barrel. Texas ain't where it is due to Rebumplicans. What helped was you exported Bush for 8 years, thanks for that...