In a recent article on TechCrunch, Jon Bischke, the founder of RG Labs, discusses the current recession and its impact on the entire country. Well, more like its impact on the entire country minus some small parts.
Jon argues that the current start-up technology markets in places such as San Francisco, Palo Alto and Manhattan have insolated them from the harsh realities of the “Great Recession” and managed to keep the economies growing in those areas. He then goes on to draw a stark contrast between the economies in these areas to what is happening in the rest of the country.
One thing that was not mentioned was the local economies in other parts of the country that are currently showing signs of growth. Surprisingly, it’s not just start-up technology companies that are leading the way.
Take the National Capital Region, for example. The corridor that extends from Washington, D.C. into Northern Virginia has an unemployment rate that is under the national average, according to information from the U.S. Bureau of Labor Statistics.
What is driving the economy in this area? It’s not all emerging growth or start-up technology companies. The government contracting market, health IT and other hot industries continue to drive economy growth in the area.
Further evidence of the National Capital’s strong economy can be seen in the local area’s housing market. According to a recent article in the New York Times, the Washington, D.C. region is one of the few areas that have seen housing prices increase.
That same article attributes the area’s high-tech, media, software, biotech and government markets for driving the region’s economy.
Overall, the region has 5.5 million people and nearly $400 billion in economic output. The region is home to major corporations and the highly-educated staff that work for them, including engineers, scientists and more. Fairfax, Arlington and Alexandria counties in Northern Virginia are in the top 10 in the nation in income. Those three, plus Loudoun County, are in the top five in the nation in human capital.
So, Palo Alto, San Francisco and New York City may be getting by without seeing too many negative effects of the ongoing recession, but they’re not the only ones. The National Capital region remains one of the nation’s strongest economies, and it’s not just tech start-ups driving the region’s prosperity.
With new emerging industries, such as biotech, driving the D.C. economy, there should be hope for other areas as well. American innovation and ingenuity is driving a growing economy in the Washington, D.C. region, and it will bring prosperity back to many parts of our country, not just San Francisco, Manhattan and D.C.