Mark Cuban Says a Recession Will Impact These Types of Cities the Most
Written by
Jordan Rosenfeld
Edited by
Molly Sullivan
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Experts are still undecided on whether or not the constantly changing tariff landscape, imposed by President Donald Trump, is likely to kick the U.S. into a recession in the near future.
However, if a recession does result, billionaire Mark Cuban recently posted on the social media site X that it won’t affect all cities the same. Here’s who will be hit the hardest.
These Places Will Be Hardest Hit
According to Cuban’s post on X, recessions will hit “small cities, towns and states” the worst. “And it won’t be pretty,” he wrote.
The reason? These places are more dependent upon federal funds. In the wake of the formerly Elon Musk-led Department of Government Efficiency (DOGE), billions of federal funding cuts are likely to hit these places “disproportionately,” Cuban wrote.
He added, “They can be catastrophic to a town. Because they are smaller, and more expensive to reach, they are more susceptible to the impact of tariffs and will be the first to see their product shipments cut when there are shortages, and their prices will go up more as a result.”
He said the impacts will gut “fabrics of their communities” such as the local health clinic or the local museum.
Without federal funding to make up shortfalls that preexist a recession, an economic downturn of any kind can paralyze a small town or city’s basic operations, from emergency services to basic road maintenance.
A Quiet Devastation
Worse, because they are so small, he said most Americans might not even realize what’s happening to these places, unless they live there. He wrote, “They won’t be told in GDP numbers. They will play out in the small town newspapers (that are left ) across the country.”
Further, if Congress passes proposed cuts in Trump’s “One Big Beautiful Bill,” which seeks to slash billions from Medicaid, rural communities will be among the biggest losers, according to the Center on Budget and Policy Priorities. Since the vast majority of patients who seek services at rural healthcare centers rely upon Medicaid, cuts of this kind will also slash jobs and healthcare access.
What It Means for Your Wallet
If you live in a small town or rural community, a recession can quietly drive up your personal expenses and make it harder to access essential services. This could translate to the following circumstances:
- Higher prices, poorer supply chains
- Fewer local jobs and services
- Added travel and transportation costs to get services you need
How To Protect Yourself
Even if a recession doesn’t come to pass, it’s a good idea to get prepared by doing the following:
- Build or replenish your emergency fund: Whatever you can set aside for emergencies will likely come in handy. Keep it in a high-yield savings account if you can to stay ahead of inflation.
- Stock up on nonperishables now: Every time you take a trip to the store, buy just a couple of extra, shelf-stable nonperishable items at bulk prices.
- Support local businesses: Keep your funds in your community by shopping local as much as you can.
- Stay up to date on policy news: Pay attention to local news or updates to things like Medicaid, your local infrastructure and other aid programs.
- Seek support. If you’re in a pinch, look to local charities and religious organizations for support.
You can’t control if a recession comes but you can prepare to the best of your ability so you’re not caught off guard.
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