SMU experts: Texas to shine in 2016, but world’s another story
Cox panel predicts the Texas economy is strong but the world's could get ugly in 2016.
By Cheryl Hall
Living in North Texas is still a beautiful thing — even with the dramatic decline in oil prices. But for much of the world, this year could get ugly.
So say the pundits of SMU’s Cox School of Business.
Every year for the last eight, Dean Al Niemi has gathered some of his brightest business, financial and economic minds for a roundtable discussion with area media.
At the first event, held at the close of 2008, I wore a T-shirt from the 1970s that said: “The Economy Sucks.”
And it did.
The message from the professors at the time was that things would get far worse before they got better. But when it did, the American economy would bounce back faster than expected.
Seven years later, and we’re still waiting for that slingshot rebound.
“This recovery, so far, is averaging 2.4 percent real growth,” Niemi said. “So it’s recovery at half speed.”
And he’s ticked about the reasons why.
“You’ve got weak housing, lousy job growth and the consumer under a tremendous debt burden. And the kicker is, ‘What’s public policy been?’” Niemi asked and answered. Government at all levels has raised taxes and fees and dampened private-sector initiatives.
That leads Niemi to project real economic growth at a still-sluggish 2.7 percent in 2016.