What is the Secret to Washington's Success?

With the healthiest economy of any major metropolitan area in the country and a winning baseball team, D.C. is doing quite well for itself these days. David Leonhardt looks at what economic lessons the city has to offer the rest of the country.

2 minute read

August 6, 2012, 12:00 PM PDT

By Jonathan Nettler @nettsj


With unemployment at 5.7 percent
in June, compared with 9.3 percent in Chicago, 9.6 percent in New York
and 10.3 percent in Los Angeles, and soaring housing prices, D.C.'s
economy is the envy of a country still struggling to overcome the Great Recession. And the city's prosperity is visible in the ongoing redevelopment that kicked off towards the end of the 1990s, and has been remaking neighborhoods across the city at a brisk pace ever since. 

Leonhardt identifies two key elements driving D.C.'s winning ways - government spending and education. 

"In the worldwide experiment on fiscal policy that's been run during the
past few years, Washington has joined China firmly in the stimulus camp.
Much of the rest of the United States, where almost two million state
and local government jobs have disappeared, looks more like
austerity-hobbled Europe." Yet D.C. has received "more stimulus dollars per capita than any state, according to an analysis by ProPublica."

"Washington's second lesson is arguably even more important. If you
wanted to imagine what the economy might look like if the country were
much better educated, you can look at Washington."

"In an economy ever more organized around knowledge, Washington's
employers - from biotechnology and Internet companies to retail and
health care - have an easier time finding workers who fit their needs.
Especially in bad times, employers can have more confidence they are
hiring someone they will want to keep." 

 

Saturday, August 4, 2012 in The New York Times

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 9, 2025 - Diana Ionescu

Map of Haussmann's redesign of Paris in the 1850s through 1870s under Napoleon III.

In Urban Planning, AI Prompting Could be the New Design Thinking

Creativity has long been key to great urban design. What if we see AI as our new creative partner?

June 30, 2025 - Tom Sanchez

View of dense apartment buildings on Seattle waterfront with high-rise buildings in background.

King County Supportive Housing Program Offers Hope for Unhoused Residents

The county is taking a ‘Housing First’ approach that prioritizes getting people into housing, then offering wraparound supportive services.

July 11 - Real Change

Aerial view of suburban housing near Las Vegas, Nevada.

Researchers Use AI to Get Clearer Picture of US Housing

Analysts are using artificial intelligence to supercharge their research by allowing them to comb through data faster. Though these AI tools can be error prone, they save time and housing researchers are optimistic about the future.

July 11 - Shelterforce Magazine

Green bike share bikes parked in a row on a commercial street with outdoor dining and greenery.

Making Shared Micromobility More Inclusive

Cities and shared mobility system operators can do more to include people with disabilities in planning and operations, per a new report.

July 11 - Cities Today