Cities Whose Economies Are Failing vs. Cities Whose Economies Are Thriving
The economic landscape of the United States is marked by stark disparities between cities. Some cities are thriving, showcasing robust economies and offering a high quality of life to their residents, while others are struggling, grappling with economic decline and its associated challenges. The COVID-19 pandemic has highlighted and intensified these disparities, revealing the resilience of some cities and the vulnerabilities of others.
This analysis aims to provide a balanced view of the economic realities in different U.S. cities, highlighting those that are flourishing and those that are facing economic hardships, with a focus on objective economic indicators and the implications for the residents of these cities.
5 Thriving Metro-Area Economies
The following metro areas are economically thriving, per Smartest Dollar data.
San Jose, California
- GDP per capita: $210,235.
- Total GDP: $410,418,579,000.
- Personal income per capita: $136,338.
- Insight: The San Jose area leads the pack with the highest GDP per capita, reflecting a strong economic output per resident. The city’s economy is primarily driven by private industry, contributing to its status as a hub of wealth and innovation.
San Francisco, California
- GDP per capita: $144,633.
- Total GDP: $668,677,573,000.
- Personal income per capita: $123,711.
- Insight: San Francisco metro’s economy is marked by high GDP per capita and personal income, indicative of the city’s economic vitality and the affluence of its residents. The city continues to be a magnet for talent and investment, fostering economic growth.
Seattle, Washington
- GDP per capita: $119,646.
- Total GDP: $479,966,484,000.
- Personal income per capita: $89,274.
- Insight: Seattle metro’s substantial GDP and high personal income per capita underscore the city’s economic strength and the prosperity of its inhabitants. The city’s diverse economy and innovative spirit contribute to its economic success.
Boston, Massachusetts
- GDP per capita: $105,461.
- Total GDP: $463,406,000,000.
- Personal income per capita: $82,560.
- Insight: The Boston area’s economy is robust, with a high GDP per capita and substantial total GDP. The city’s economy is diverse, with significant contributions from education, healthcare, and technology sectors, making it a hub of innovation and economic activity.
New York, New York
- GDP per capita: $89,979.
- Total GDP: $1,772,261,000,000.
- Personal income per capita: $76,118.
- Insight: The New York City metro area, with its colossal total GDP and high personal income per capita, remains a global economic powerhouse. The city’s economy is multifaceted, encompassing finance, media, technology, and more, reflecting its status as a global economic hub.
5 Cities Enduring Failing Economies
By contrast, the following cities are suffering economically, according to Business Insider. While the category data points may differ, the portrait painted by these figures — accurate as of 2019 — tell a distinct story.
Detroit, Michigan
- Unemployment rate: 4.3% (highest among the 30 biggest metro areas within Business Insider’s data set).
- Job-growth rate: 0.5% (second lowest).
- Insight: Detroit’s economy is grappling with high unemployment and sluggish job growth. The city’s manufacturing-centric economy was severely impacted by the Great Recession, and recovery has been slow, despite efforts to revitalize the city.
Riverside, California
- GDP per capita: $29,753 (lowest among the 30 biggest metro areas).
- Average weekly wage: $909 (lowest among the 30 biggest metro areas).
- Insight: Riverside faces economic challenges with the lowest per capita GDP and average weekly wage among the major metro areas. The city’s economy is marked by economic stagnation and limited opportunities, reflecting the need for economic revitalization.
St. Louis, Missouri
- GDP growth rate: 0.5% (second lowest among the big metro areas).
- Average weekly wage: $1,080 (seventh lowest).
- Insight: St. Louis’s economy is characterized by low GDP growth and average weekly wages, indicating economic distress and limited wage growth. The city’s economy requires strategic interventions to spur economic development and enhance living standards.
Baltimore, Maryland
- Unemployment rate: 3.6% (tied for sixth highest among the big metro areas).
- GDP growth rate: 1.0% (third lowest).
- Insight: Baltimore’s economy is facing challenges with high unemployment and low GDP growth. The city needs focused economic strategies to address unemployment and stimulate economic growth to improve the overall economic health of the region.
Tampa, Florida
- GDP per capita: $41,224 (second lowest among the big metro areas).
- Average weekly wage: $1,021 (fifth lowest).
- Insight: Tampa’s economy is marked by low per capita GDP and average weekly wages, indicating economic constraints and lower living standards. The city is in need of strategic economic initiatives to boost growth and improve quality of life.
The contrast between the thriving and failing economies of U.S. cities is stark, reflecting the diverse economic realities across the nation. While cities like San Jose and San Francisco are epitomes of economic prosperity, others like Detroit and Riverside face significant economic challenges. The resilience and adaptability of cities in the face of economic shifts and crises will determine their future trajectories and the well-being of their residents.
Editor's note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates' editorial team.
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