The Big Mo: Raleigh Area’s Success Offers Lessons | Eastern North Carolina Now

    Publisher's note: This post, by Jim Tynen, was originally published in the Budget & Taxes and Economy section(s) of Civitas's online edition.

    A new survey suggesting the future looks bright for the greater Raleigh area has important lessons for the whole state.

    The website newgeography.org recently published a study of which metro areas have the most economic momentum as 2014 gets under way. The Praxis Strategy Group looked at factors such as GDP growth, job growth, unemployment rates, population growth and migration from other states.

    The Raleigh metropolitan statistical area ranked ninth in the nation. That put it ahead of much-hyped cities such as Silicon Valley's San Jose, Portland, Ore., Washington, D.C. and Seattle. That's encouraging, and I'd like to suggest the outlook for the state as a whole might be even brighter than that result appears at first glance  -  but only if we keep some key facts in mind.

    Joel Kotkin, an incisive writer on the economy and urban issues, noted at newgeography.org that "virtually all the fastest-emerging economies coming out of the recession are either in the Southeast, Texas, the Great Plains or the Intermountain West." The eight metro areas ranked higher than Raleigh include four Texas cities, Salt Lake City, Nashville, Tenn., Denver and Oklahoma City.

    Politics and history are at the root of these regions' success. According to Kotkin, "Most of the strongest local economies combine the positive characteristics associated with blue states  -  educated people, tech-oriented industries, racial diversity  -  with largely red, pro-business administrations." In other words, they are like the North Carolina of today.

    Moreover, North Carolina has a chance to catch up with areas that in recent years have grown faster. Places such as Texas have had governments that strongly supported business and free markets. North Carolina, however, for a century or so was governed by one party that seldom was an enthusiastic backer of free enterprise (though of course well-connected cronies did well.) By the time the Great Recession hit in 2007, North Carolina was losing steam. State government  -  whatever its accomplishments in the past  -  had burdened citizens and businesses with heavy taxes and excessive regulation. In recent years the state's economy lagged behind our closest competitors in the Southeast, and unemployment was among the worst in the nation.

    Finally, last year the General Assembly and governor got a chance to pass reforms to cut back the excesses of decades of liberal rule. Key measures included tax cuts and the first steps toward cutting governmental red tape. One promising sign: In the year following the November 2012 elections, the state's unemployment rate plunged 2 full percentage points, the biggest drop in the nation in that time.

    Yes, that's only one statistic  -  but it's a revealing one. It will take time for the reforms to take full effect. Yet if they work as expected, they will help kick the whole North Carolina economy into overdrive. They will allow the Tar Heel State to combine a solid infrastructure with a more prudent and business-friendly approach. That will enable us to keep pace with the powerhouse economies of other states.

    Nothing is guaranteed, of course. The legislature will have to maintain its momentum. Political opponents have tried to raise a ruckus against the reforms, and will be doing whatever they can to derail progress.

    Nor have all the handicaps North Carolina faces been surmounted. Kotkin noted, "One critical factor propelling growth has been the energy revolution." Unfortunately, our state has lagged behind in exploring for new sources of energy. That could hurt later on, when other states profit from producing more natural gas and oil, and using that cheap energy to boost manufacturing and overall growth.

    Nevertheless, North Carolina is well-positioned for accelerated growth, if we heed the lessons other booming areas display. Most important, we have to remember what drives real growth: Government that makes it easier for taxpayers, workers and businesses to thrive.
Go Back


Leave a Guest Comment

Your Name or Alias
Your Email Address ( your email address will not be published)
Enter Your Comment ( no code or urls allowed, text only please )




Charlotte Races Into Economic Impact Projection Hall Of Shame Civitas Institute, Editorials, Op-Ed & Politics How did our politicians determine that only 25% of our teachers deserve to be treated as professionals?


HbAD0

Latest Op-Ed & Politics

President Joe Biden took direct aim at Supreme Court Justice Clarence Thomas during a recent interview, referring to him simply as “the guy who likes to spend a lot of time on yachts.”
The best way the county and city can help hold down inflation is to resist all tax increases
Pope Francis lambasted leftist gender ideology during an address this week, warning that it presented an extreme danger to mankind.
amnesty would just encourage more illegal aliens to storm our borders
The Christmas candy was barely off the shelves when the Valentine’s candy appeared. Red and pink hearts with caramel and nut-filled chocolate goodness caught our eye. We are reminded of how we love love. Young love, especially.

HbAD1

far left sugar daddy has also funded anti-Israel groups and politicians in US
Be careful what you wish for, you may get it
America needs to wake up and get its priorities right
Former President Donald Trump suggested this week that if he becomes president again, he might allow Prince Harry to be deported.
It's a New Year, which means it's time to make resolutions — even for prominent evangelical leaders. The Babylon Bee asked the following well-known figures in the faith what they hope to accomplish in 2024:
Vice President Kamala Harris will visit a Minnesota Planned Parenthood clinic, reportedly the first time a president or vice president has visited an abortion facility.

HbAD2

An eight-mile stretch of the Blue Ridge Parkway near Asheville has been temporarily closed due to a string of “human and bear interactions,” the National Parks Service announced.

HbAD3

 
Back to Top