Area entrepreneurs in myriad industries were honored at a black-tie gala on June 27.Full Story
Governing reports on a new Urban Institute report that looks at how income inequality affects neighborhoods. In short, the report demonstrates that between 1990 and 2010, wealthier neighborhoods have become wealthier, while poorer neighborhoods have become poorer, further exaggerating levels of income inequality between neighborhoods across U.S. metro areas. And the region that leads the way in this trend towards increasing neighborhood income inequality is Dallas (or, more accurately, DFW). Via Governing:
The analysis examined inequality within commuting zones, or large regions of several counties that resemble metropolitan areas. Of all commuting zones with at least 250,000 residents, those with the largest neighborhood disparities were Dallas, Philadelphia and Baltimore.
The Dallas commuting zone, home to about 3.7 million residents, had the highest degree of neighborhood inequality of any area reviewed. The Urban Institute’s Rolf Pendall, who wrote the report, attributed this to the area’s extremely low average wages for poor communities, along with a regional education system that trails other parts of the country.
There are a few interesting takeaways from the study.Full Story
The new study by two Harvard economists written about in the New York Times this week presents some disappointing data about Dallas County. By looking at the incomes of more than 5 million people who moved, as children, with their families in the 1980s and 1990s, they found that 20 years of growing up in Dallas County led to children who grow up in one of the poorest families (income of less than $30,000/year) earning $1,340 less in annual income than the national average. That’s better than only 19 percent of the other counties in the nation.
On the other end of the spectrum, the children of the Dallas County’s richest families (earning more than $100K/year) made $990 more annually than the average among the nation’s wealthiest — and those in the richest 1 percent of families were $1,900 better off than the average.
Dallas is hardly alone among populous counties in seeing this sort of disparity in outcomes for the rich and the poor. But note also (image above) how poorly it performs as compared to neighboring North Texas counties in serving its poorest. Collin, Denton, Rockwall, Tarrant, Ellis, and (especially) Johnson all see their kids on the lowest end of the economic spectrum do better than the national average.
So what are the causes of these differences?Full Story
Yesterday John Neely Bryan fielded a question about transplants coming to Dallas and wanting to make this city more like the place they came from. But this comparative disconnect works both ways. Too often I’ve heard people from Dallas comparing this city to New York, or San Francisco, or some other coastal metropolis with a larger population, older history, completely different geography, or any other number of factors that makes a comparison with Dallas a little silly. Case in point: we built a suspension bridge over our drainage ditch of a river because, you know, amazing big cities have suspension bridges.
But what if we had more modest ambitions. What if we put all of our hopes and dreams into becoming the next — that’s right — Minneapolis?Full Story
I’m going to try to avoid cutting and pasting the entirety of Michael Ennis’ “The White Stuff” from the March issue of Texas Monthly. It offers such a compelling take on Texas economic and cultural history – with particular relevance to Dallas history – that anyone interested in this city should read the whole thing.
The column is about Sven Beckert’s new book Empire of Cotton: A Global History, which Ennis likens to last year’s surprise sensation Capital in the Twenty-First Century by Thomas Piketty insofar as it seeks to shine new light on the inner workings of the “invisible hand” of capitalism and how that hand has shaped the world in which we live.Full Story
Over the weekend, legendary investor Warren Buffett, the “Sage of Omaha,” released his annual letter to shareholders of Berkshire Hathaway. Each year the financial world pores over Buffett’s words as if they are tea leaves predicting the future of the world economy. And considering that Buffett is the world’s third-richest man, it’s not hard to understand why.
Well, among his advice this year: Read D Magazine.
Before I depart the subject of spin-offs, let’s look at a lesson to be learned from a conglomerate mentioned earlier: LTV. I’ll summarize here, but those who enjoy a good financial story should read the piece about Jimmy Ling that ran in the October 1982 issue of D Magazine. Look it up on the Internet.
Through a lot of corporate razzle-dazzle, Ling had taken LTV from sales of only $36 million in 1965 to number 14 on the Fortune 500 list just two years later. Ling, it should be noted, had never displayed any managerial skills. But Charlie told me long ago to never underestimate the man who overestimates himself. And Ling had no peer in that respect.Full Story
There’s an interesting tidbit on Unfair Park this morning about the possibility of a new, large-scale retailer coming to the ground floor of 1401 Elm, the largest vacant building in the Central Business District. The Observer’s Stephen Young makes a heads-up observation. Back in January 2014, the developer of 1401 Elm requested TIF funds from the city, and the request said the project would include 25,000 square feet of retail or restaurant space and 40,000 square feet of office. Now, the developer has come back to the city with a revised outlook: how about just 65,000 square feet of commercial space? That, according to city staff, would allow the developer more flexibility for things like bringing in an upscale grocer to take over the building’s 50,000 square feet of ground floor retail.
But wait. Young points to a Dallas Business Journal article from December in which Jack Gosnell, who is brokering the retail for the site, suggests that the same space might be good for a “big box retailer or a department store.”
Cue panic. Could Sam’s Club be invading downtown too?Full Story
As Mike Rawlings told the Dallas Morning News editorial board recently, he’s “a numbers guy.” So anchoring all the puffery in his new mayor’s letter was one solid factoid: “According to a recent Forbes study, Dallas is now the fourth fastest-growing city in the country.” Wait, what? I mean, without even checking, I instinctively knew that wasn’t true, not by a long shot. What was this claim doing here? I had to get to the bottom of this.Full Story
Stumbled on this interesting report from a few of months ago that looks at what cities attract college graduates. According to data assembled by the think tank City Observatory, “The number of college-educated people age 25 to 34 living within three miles of city centers has surged, up 37 percent since 2000, even as the total population of these neighborhoods has slightly shrunk.” Why is this significant? Well, because the movement of young people and the places that attract them can help provide “a map of the cities that have a chance to be the economic powerhouses of the future,” the article asserts.
The economic effects reach beyond the work the young people do, according to Enrico Moretti, an economist at the University of California, Berkeley, and author of “The New Geography of Jobs.” For every college graduate who takes a job in an innovation industry, he found, five additional jobs are eventually created in that city, such as for waiters, carpenters, doctors, architects and teachers.
“It’s a type of growth that feeds on itself — the more young workers you have, the more companies are interested in locating their operations in that area and the more young people are going to move there,” he said.
So what cities will be the economic powerhouses of the future? Not Dallas, apparently.Full Story
Reading this article by Richard Florida about the mobility of the creative class mostly made me realize how little I know about Richard Florida and his “creative class” theory. Sure, I’ve heard the general takeaway: that knowledge-based workers drive economic development and urban growth. But here he talks about a recent study that drills into details, breaking apart this “class” into three forms: synthetic, analytic, and symbolic. Each segment shows different patterns of movement. Dallas comes close to the top in two categories.Full Story
Last night the Dallas Morning News held a
campaign event panel discussion hosted by Mayor Mike Rawlings at Adamson High School in Oak Cliff to discuss financing and investment in Dallas’ southern sector. What brought me out, in part, was Dallas Fed chair Richard Fisher, who was to speak. But I was also intrigued by the promise of looking at issues of poverty, race, and southern Dallas development within the context of the financial services industry, an important, though often overlooked, ingredient in the legacy of blight and disinvestment in the southern sector.
The stage was set: the Three Generals of the Trinity Toll Road — former City Manager Mary Suhm, former city council member Craig Holcomb, and North Central Texas Council of Governments transportation director Michael Morris — in the same room as a council member who rides bikes with Better Block’s Jason Roberts and the guy who launched the campaign to tear down I-345. And all five were going to have a moment on the mic — all in front of the rapt, gracious attention of an old-school Dallas business association. It sure felt like a potential moment.Full Story
The special flight left Virgin’s former home at DFW International Airport and soared high over Dallas for about an hour. (It’s normally a five-minute flight, but Virgin wanted to stretch things out.)Full Story
Just over five months ago, Dallas residents and the City Council were surprised to learn that the city of Dallas had secretly commissioned a study that supported city staff’s determination that the U.S. Department of Justice Antitrust Division had erred when it determined that Virgin America, rather than Southwest Airlines, should receive the two American Airlines gates that American had determined it no longer needed.
Cheered on by the city of Fort Worth, here and here, Dallas city staff proceeded to throw all sorts of roadblocks up against what should have been a straightforward lease approval. The process quickly devolved into a national farce, possibly because the idea that allowing one airline to control 90 percent of the gates at an airport would serve competitive interests is ridiculous on its face. Council Member Vonciel Jones Hill featured prominently, arguing that the city (she?) was in a better position than both the contracting parties (American Airlines and Virgin America) and the Department of Justice to determine what was best for the citizenry. Finally, after weeks of opaque, behind-the-scenes machinations at City Hall (during which time Virgin was compelled to launch a high-cost public relations campaign, and Sir Richard Branson was compelled to interrupt his vacation for a trip to Dallas to beg for the gates as part of an effort that directed critical international spotlight to what appeared to be crony capitalism at work), Virgin was finally given the green light by city staff to actually take possession of the gates that appeared to have been rightfully its own from the outset.
Fast forward to this past week: once again, residents and elected officials found themselves surprised to learn that city staff had taken action to thwart an airline’s ability to operate at Love Field.Full Story
While scrolling through my Facebook timeline the other day, I was startled by a post from something called “Dallas Economic Development” which trumpeted the “fact” that “Dallas is a top 10 city for affluent residents.” This leapt out at me, because I suspected it to be untrue, so I decided to dig further.
Checking the Facebook page for “Downtown Economic Development,” I discovered that it is sponsored by the City of Dallas Office of Economic Development, which “supports existing and prospective businesses and the development and redevelopment of downtown and neighborhoods in southern Dallas.” Hmm … seemed legit, so far. To the extent I had any remaining doubts about the veracity of this “fact,” the Downtown Economic Development post referenced a Dallas Morning News blog post by Pamela Yip headlined “Dallas vaults into top 10 population centers for affluent.”
Hmm … I know Ms. Yip to be pretty careful when it comes to her writing, so I decided to press on. Her post made the claim that “Dallas and Houston were big beneficiaries of the trends, leading in the growth of high net worth individuals and wealth. The cities recorded the most aggressive rates of wealth growth among the affluent, both in 2013 and in the last five years, the report said. The cities also were the largest gainers in the growth of affluent residents.” Now I was definitely intrigued, as this simply did not square with the city of Dallas that I know.Full Story