In the economic analysis the Brookings Institution released last week — the one where Washington looks remarkably bad — Austin, Raleigh and Nashville are all humming. Their economies are growing. Aggregate wages are rising. The number of jobs in these regions is expanding, too.
That’s all great news if you believe that a rising tide lifts all boats. Except, in these places, it hasn’t. Whatever economic growth these metropolitan areas have experienced since the recession isn’t improving the quality of life for everyone.
Take Austin: Among the 100 largest metropolitan areas in the country, it ranks 2nd in the nation on Brookings’ combined measure of economic growth. On “inclusion” — which reflects improvements in relative poverty, median wages and employment — it ranks 60th. Austin fares barely better when you consider those metrics particularly among non-whites.
Look across all 100 of these metros, and there’s only a weak relationship between economic growth and inclusion. Areas with rapid growth haven’t necessarily swept up the poor and working class. In many places where relative poverty has declined (like Jackson, Miss.), the economy isn’t growing much: