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Letter to The Economist
This article is from local economist Elliott Pollack's website. It is a letter from Elliott Pollack dated August 8, 2007 to editor of The Economist Magazine in response to a negative article about Phoenix in the July 26th 2007 edition of The Economist titled "Into the ashes". We thought that it was an excellent response to all of the negativity that we have been facing in our market. While our market, and the national real estate market, are going through some painful times with this correction, we all must realize that real estate is cyclical and that this market has the attributes to make it one of the best in the nation, now and into the future. As Elliott states, "fortunately, the economic fundamentals that have made the Greater Phoenix economy so successful in past years remain in place. In addition to offering individuals and families the opportunity to succeed, Greater Phoenix generally remains business friendly. The bottom line is that people want to move here. Data doesn't lie."

http://www.elliottpollack.com/files/Letter%20to%20The%20Economist.pdf

Letter to The Economist

8/6/2007

SIR –

I was surprised to read the article entitled “Into the ashes” in your magazine (July 26, 2007), not only

because it is myopic, but because it is factually incorrect. Indeed, Phoenix is now a big city and naturally

has many big city problems. However, Phoenix is also a vibrant and growing community that has a strong

economic base and long-term growth potential. This growth potential is based on the examination of

quantifiable facts and not prejudiced anecdotal information.

Let’s examine the basic facts. The City of Phoenix is the economic and social hub of the Greater Phoenix

area. During the past three years, Greater Phoenix has been the most rapidly growing of all 28 major

employment markets in the U.S., and has consistently ranked at or near the top in terms of growth. Rapid

growth also tends to translate into the ability of a community to collect sufficient tax revenues to handle

inherent problems. This is an attribute that many other cities do not enjoy. While the benefits of such

revenue generation are also a function of proper deployment of government services, City of Phoenix

politicians and strategists have made correct decisions far more often than wrong decisions.

It is difficult to envision Phoenix as an abysmal community when so many hundreds of thousands of people

have made the conscious decision to move here in recent years. In terms of opportunity, Phoenix is a

meritocracy. No one cares where you are from, where you went to school, or who your parents were.

People come to the Phoenix area to work, live, raise a family, and succeed based on their own merits. The

important point is that people and companies vote with their feet and have been voting for Greater Phoenix

for decades. While quality of life, like beauty, is in the eye of the beholder, based on virtually any

economic measure, most find Phoenix attractive.

In terms of the highlighted crime rates, if the author relied on government data rather than personal opinion,

the results would have shown that the rates of burglary and theft per person in the Phoenix area have been

declining for many years, even more so than at the national level. In terms of auto theft, the rate is exactly

the same as in 1996.

Fortunately, the economic fundamentals that have made the Greater Phoenix economy so successful in past

years remain in place. In addition to offering individuals and families the opportunity to succeed, Greater

Phoenix generally remains business friendly. The bottom line is that people want to move here. Data

doesn’t lie. I hope that the next review of our community includes an analysis more worthy of The

Economist name.

Elliott D. Pollack

CEO

Elliott D. Pollack & Company

Economists

Scottsdale, Arizona

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