Austin hasn't always been the bustling city that we all know today. This amazing city near the Colorado River had many residents and visitors long before the first cornerstone was laid. Today, Austin is known for its cultural life and many high-tech innovations, as well as for the senators and schoolteachers who shaped its beginnings. The same success that has gained the city a national reputation of greatness has brought with it many difficult choices, as the city expands on a scale that might shock the early residents of Waterloo. Hundreds of years ago, many Native American tribes such as the Tonkwas, Comanches, and Lipan have camped and hunted along the many creeks throughout what we now know as the city of Austin. Even these small tribes shaped Austin into an economic powerhouse as well as a city that has stood the test of time. The city is known as a technology hub, one of the leaders in medical advancement, the amount of highly educated residents living in the city, as well was its motto “ The Live Music Capital of the World”. These are just a few things that have made Austin successful and will continue to drive this magnificent city into the future.
The state’s fourth largest city, Austin originated as the riverside village of Waterloo, a large buffalo-hunting region that was inhabited by native tribes. Austin has a population 931,830 and is the 14th largest city in the US and is the safest large city in the country. Since 1895, the city of Austin has grown each year by 3.5% population. That means every 20 years Austin has doubled in population. In 1839, it was selected by scouts as a site for the permanent capital of the Republic of Texas and was named to honor Stephen F. Austin, the father of the Texan republic. By 1840 Austin was named the capital of the Republic of Texas, with 856 residents. When Mexican invasion threatened Texas in 1842, the government moved to Houston, but the town’s citizens fought the “Archive War”, where they retained the government records from the Mexicans. The government returned to Austin in 1845 and named it the capital, the year in which Texas became a state. After the arrival of the Houston and Texas Central Railroad, the city flourished as a trading center for ranchers and farmers from all over the state. A flood in 1900 caused widespread destruction throughout the city, but with the harnessing of the river for flood control and power in the early 20th century, industry began to thrive, and has never looked back. The city’s population is very ethnically diverse. Less than half of its people are of European descent, more than one-third of the population is Hispanic, and African Americans and Asians each make up less than one-tenth of the population. There are many annual festivals celebrate the ethnic groups that have contributed to the city’s culture, such as Mexicans, African Americans, Germans, and French. Today and during the early and late 20th century, Austin already had its name on the map, however the economy was still extremely volatile during the Great Depression and the World Wars.
Viewing Austin’s landscape today, it can be hard to imagine the city plagued with rows of empty houses, surrounded by fields of dirt stricken drought. The Great Depression didn’t hit Austin hard, but the effects still rubbed off on its residents. Thousands of migrant workers fled to the west looking for work elsewhere. Tens of thousands of Mexican immigrants who came to the United States seeking better opportunities, fled back to Mexico to escape the horrible circumstances they faced during The Depression. However, the town survived and even thrived during the 30’s due to its superior twin foundations of government and education, as well as the political skills of Mayor Tom Miller and Congressmen Lyndon B. Johnson, who would later go on to become President. Austin’s population grew at a rapid pace during the 1930’s then in any other decade during the 20th century, increasing 66 percent from 53,120 to 87,930 people. The University of Texas nearly doubled its enrollment during the decade and undertook a massive construction program. In addition, the Robert Mueller Municipal Airport opened its doors for commercial air traffic in 1930. During the years of WWII, Texans and the residents of Austin thrived. The largest and greatest petrochemical industry in the world was built to refine fuel for the American war machines. Farmers cultivated the soil to its maximum, which helped the United States become the granary for the Allies, as well as large aircraft manufacturing factories opened up across the city. As a result manufacturing increased fourfold, from $453,105,423 in 1939 to $1,900,000,000 in 1944. Labor was at a premium, especially with men in the service, defense contracts readily available, and with wages escalating. Over 500,000 Texans and thousands more from other states moved from rural areas to job markets in nearby cities, including Austin. This was the just another large influx in economic power Austin was having and it wouldn’t stop growing from there.
Today, Austin’s economy is continuing to thrive. Austin has an unemployment rate of 2.9%, well below the U.S. average of 5.2%. Austin has seen the job market increase by 3.0% over the last year. Future job growth over the next ten years in the city is predicted to be 43.1%, which is higher than the US average of 38.0%. Even though the sales tax rate is 8.3%, a little higher than the country’s average, the city has a 0% income tax rate, while the U.S. income tax rate is 4.6%. The average income is $32,672 a year, $4,000 above the national average. The median household income for Austin residents is $55,216 a year, with the US average is $53,482 a year. Another important fact is Austin is ranked a 1 on a scale of 1 to 100 on the crime list. All of these numbers indicate one thing, the city of Austin is well above the curve and should be a benchmark for other cities to obtain. These figures attract many wealthy companies that drive the many sectors of which Austin is known for and continuously brings in a steady cash flow.
The greater Austin area is recognized around the country as a designated location for corporate headquarters and other supporting facilities. It is praised for its quality of life and hosts a strong regional infrastructure supported by a multi-tiered workforce. These conditions combine to create one of the strongest business environments in the United States. One of the main branches Austin is known for is advanced manufacturing and technology. Fueled by Austin’s young, highly trained workforce and partnerships between the region’s higher education institutions and private sectors, Austin is a leader in semiconductor and electronic manufacturing. The region has also seen growth in manufacturing sectors including automotive technology, medical devices, nanotechnology, and aerospace manufacturing, as well as a small rebound of general manufacturing, which took a small hit during the 2009 recession. Innovation is a key export for the Austin high-tech economy. High-tech manufacturing currently represents 55 percent of the region’s manufacturing employment. Spurred by annual population growth of 3.0% and a favorable business climate, the Austin region is ready to be considered a location for general and advanced manufacturing projects.
Not only is Austin on one of the forefronts of technology manufacturing, it is also a large leader in life sciences and the healthcare department. Austin’s growing reputation of innovative life sciences companies embraces the area’s technology infrastructure. The result is a region of both established and emerging companies that are changing the face of healthcare. Austin is home to best-in-class research facilities and boasts one of the most educated populations in the U.S. The dynamic and creative environment is fueled by the availability of funding, research collaboration, clinical trials, and skilled talent. The Dell Medical School at the University of Texas at Austin, which welcomed its first class in 2016, will transform the local economy into a medical and life science juggernaut. Over 240 life sciences companies in the region, and a workforce of nearly 15,000 is focused on the highest growth segments and research areas in the industry, including the specialties of biologics, medical devices, diagnostics, pharmaceutical, and many others. More than 3,900 companies with 97,600 workers make the State of Texas one of the leading biotech states in the country.
The last reason why the city of Austin is an economic titan is the motto it has coined over the past years, “The Live Music Capital of the World”. This is a reference to the many musicians and live music venues that play within the area. The slogan became official in 1991, after it was discovered that Austin had more live music venues per capita than anywhere else in the nation. More than 1,900 bands and performing artists live in and around the city. From blues to Indie rock, country to jazz, and many other genres, Austin’s nearly 200 live music venues mean you can catch a show any day, at almost any time. Austin is also home to some of the largest music events and festivals in the world, including South by Southwest, Austin City Limits Music Festival, The Urban Music Festival, Fun Fun Fun Fest, and the Pachange Festival. One major event in particular, South by Southwest, is one of the largest music festivals in the U.S., with more than 2,000 performers playing on more than 100 stages around the Downtown area over four days every March. The event has grown into a 10-day festival celebrating film, music and digital media. All of these music festivals bring in millions of music fans all around the world, raking in millions of dollars every year. The slogan for the city is only a small sliver of what it has to offer for nightlife and other entertainment outlets. The city will never stop growing and will continue to be an entertainment powerhouse in the industry for years to come.
For generations, Austin is a prime example for other cities across the nation to look upon as a blueprint for success. Not only is Austin currently thriving, its future looks more bright than ever before. Austin is expected to add 69,400 new jobs in the coming years. Most of those will be in professional and business services. The Austin of tomorrow will include a more shared economy, which includes the sharing of resources, talents and amenities. Medical and life science-related businesses will increase rapidly, and the the economy will be entrepreneurial driven. Overall there have been a lot of good and not so good things that have occurred over the last few years in the city. There is still plenty of work to do as all the good things about the city could come to a screaming halt if the city doesn’t address some of the most important issues Austin faces including the lack of water sources, high housing costs, and outdated transportation systems. Overall, Austin is a one-of-a-kind place that's not just unique to Texas but to the whole country. It defies stereotypes, progressive and fiercely entrepreneurial, and is largely pro-business and environment landscape. It’s an easy going city that won’t just welcome you with open arms, but it will make you a better person as well as a positive outlook towards the future. Austin is the one of the city’s of the future and will be an economic powerhouse in the years to come.