Houstonians one of least tax burdened cities in the country!

[jeremy2788]

Originally Posted by LeavingDetroit

I'm not sure I understand the rhetoric questions. I don't mean to be rude or funny, maybe just a bit slow. Perhaps the poster can explain the meaning?

I do know though from close up and hard experience what will happen to a town with its industry on the brink, in bankruptcy, no one buying its products, huge market share losses from overseas competitors, heavy overhead costs not faced by its newer/foreign competitors (i.e., pension benefits). I'm from Detroit and I can tell you most of my life it hasn't been pretty the domestic auto industry and Detroit has suffered, but around 2009 it was downright UGLY. I'd also point out other places like Pittsburg (steel) have suffered similar declines. On the other hand, single-industry towns have been able to diversity and stay alive. Detroit is slowly crawling its way out.

I'm relocating to Houston and I am somewhat frightened of the fact that Houston's roaring economy is posed for a fall if petroleum prices go south. Please tell me I'm wrong and there is not another Armageddon waiting for me in Houston.

Houston has diversified it's economy a lot since the 80s, while I think if prices start spiraling downward it won't be pretty for us, it also won't leave us in a doomed situation.. but it will cause some damage.

I am glad that oil is making us so much money in this town, but I still think we should not be blinded by those profits and not continue to try and diversify even more. Thankfully, I do not believe that is the case though, I think all the good news from oil is just taking up room in the media right now.

[jek74]

Originally Posted by LeavingDetroit

I'm not sure I understand the rhetoric questions. I don't mean to be rude or funny, maybe just a bit slow. Perhaps the poster can explain the meaning?

I do know though from close up and hard experience what will happen to a town with its industry on the brink, in bankruptcy, no one buying its products, huge market share losses from overseas competitors, heavy overhead costs not faced by its newer/foreign competitors (i.e., pension benefits). I'm from Detroit and I can tell you most of my life it hasn't been pretty the domestic auto industry and Detroit has suffered, but around 2009 it was downright UGLY. I'd also point out other places like Pittsburg (steel) have suffered similar declines. On the other hand, single-industry towns have been able to diversity and stay alive. Detroit is slowly crawling its way out.

I'm relocating to Houston and I am somewhat frightened of the fact that Houston's roaring economy is posed for a fall if petroleum prices go south. Please tell me I'm wrong and there is not another Armageddon waiting for me in Houston.

Houston is not an oil town, it's a natural gas town. About 80% of the business here centers around power and natural gas pipelines. Let me give you some perspective. Natural gas prices peaked several years ago in the mid teens (say $15 or so). Since that peak nat gas prices fell almost 90%!!!!!!!! The low was put in last year at 1.90. And while prices fell 90% the Houston economy did not weaken, it actually exploded to the upside. What was driving this growth. Medical, housing, construction, technology, defense and shipping. If your argument was valid, the economy of Houston should have imploded with nat gas prices fell 90%. But it didn't. Nat gas has since recovered from those lows, currently back above $4. The future for nat gas looks pretty bright especially with LNG on the horizon. The real driver going forward is not going to be energy though, it will be healthcare.