A consistent theme I’ve been blogging about recently is how Tucson and Arizona are overly dependent on growth to fuel our economy.  Growth of people moving in to our community creates a new influx of capital and a new set of consumers that need housing, cars, appliances, haircuts and an entire host of other services.

A highlight of the Nov. 3rd U.S. News and World Report article highlights;

Q. With tax revenues evaporating and no housing bubble propping up the economy, how serious is the situation in your state?

A. It’s quite serious….But historically our economy has been tied to housing, so when the housing bubble burst, California, Arizona, Nevada, Florida – those states got hit early and particularly hard.

 The states that will tend to do better are those that have a diversified economic base. New Mexico, Texas and much of the Pacific Northwest is looking pretty good.