Freakonomics Radio - 491. Why Is Everyone Moving to Dallas?

Episode Date: January 20, 2022

When Stephen Dubner learned that Dallas–Fort Worth will soon overtake Chicago as the third-biggest metro area in the U.S., he got on a plane to find out why. Despite getting stood up by the mayor, n...early drowning on a highway, and eating way too much barbecue, he came away impressed. (Part 1 of 2 — because even podcasts are bigger in Texas.)

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Starting point is 00:00:00 Oh my gosh, my son is texting me, enjoy Sunny Bryant's, you guys access to my Uber account. That's pretty good. It's just absolutely foreign. Does this normally happen in Dallas? Yeah. No? This is, you know, like, maybe for you guys, you know? Yeah, thanks a lot. They say, yeah, yeah, New York for me. Yeah. You did some great. That was me and our producer, Ryan Kelly, and an Uber driver in Dallas, Texas,
Starting point is 00:00:42 late one night in the middle of what felt like a monsoon, we were creeping along a waterlogged highway heading toward a barbecue place called Sunny Bryan's Smokehouse. Why? Okay, let's back up a few weeks. I had read an article in City Journal called Big D is a Big Deal. The authors, Cullum Clark and Joel Kotkin, wrote that more Americans had moved to the Dallas-Fort Worth metro area over the past decade than anywhere else in the U.S. In another decade or so, the area will reach 10 million people, surpassing Chicago as the country's third largest metro area. And I thought, really? I'd been to Dallas a couple times and it never struck me as the de facto capital of America's heartland, as the Clark and Kotkin article put it.
Starting point is 00:01:34 So we called up Cullum Clark. Most of what you love about city life, you can have to a greater degree than you ever imagined in the Dallas area. We called Joel Kotkin, too. Dallas appeals to people for specific reasons, and it's appealing to a wider and wider group. And then we called up this guy. Eric Johnson, I'm the mayor of Dallas, Texas. I told the mayor right up front that I'm a New Yorker and therefore a wee bit skeptical that a city like Dallas could
Starting point is 00:02:05 be some sort of model for the 21st century. I mean, you can't replicate New York, but what Dallas offers, I don't think there's a city in the country where you can have the quality of a dining experience and take in an off-Broadway performance or go and hear a symphony or an opera performance at our symphony hall, which is one of the 10 best symphony halls in the world. Now, are there cheaper places to live in the United States than Dallas? Yes, but you won't have what I just told you about. Are there places where you can have access to first-run Broadway productions on Broadway? Yes, but you're going to pay more. This is the best deal in the country. That's a pretty compelling argument. If we come visit, can we knock on your door and say hello?
Starting point is 00:02:51 You should. And in fact, I'll be hurt if you don't. I'll come get you from the airport, in fact. When the mayor of a major American city says he will pick you up at the airport if you come visit, well, you get on that plane. So after exchanging emails and calendar invites with the mayor's team, that's what Ryan and I did. But then, at the last minute, we got the news. The mayor had an urgent family matter. No airport pickup.
Starting point is 00:03:22 No mayor at all. It was too late to change our plans, so we got on the plane, landed just in time for that torrential downpour, and by now we were also really hungry because not only was the mayor supposed to pick us up at the airport, but we were supposed to have dinner with him too. Which is how Ryan and I found ourselves in the back of that Uber, slightly despondent and questioning our decision. We weren't planning to come until he said, if you come, I will pick you up at the airport. Whoa. Okay, now we're like in a submarine. I have to say, you're a good driver. That was a little scary. I saw it coming.
Starting point is 00:04:03 I saw it coming. You saw it coming. Yeah, I saw it coming. I saw it coming. Oh,. The good news is that our Uber driver was heroic, and he got us to our destination. We did not come all the way to Dallas to drown on a highway. Thank you so much. You did a great job navigating the flood. The water?
Starting point is 00:04:23 Yeah, the water. If I could give you 10 stars, I would, but I'll give you five. Okay. All right, have a good night. Be safe. All right, thank you. The other good news is that Ryan had found the only 24-hour barbecue place in Texas, Sonny Bryan's Smokehouse.
Starting point is 00:04:37 We were practically the only people there, but they had food. Hi, how are you? What's your very favorite thing to eat? I personally like the chopped meats. How do you feel about the meat potato? Potatoes are really good also. And if you had to compare meat potato to Frito pie? I would go with the potato.
Starting point is 00:04:55 All right. I'll have the meat potato. A meat potato is a gargantuan baked potato stuffed with barbecued beef brisket. We also got some onion rings. Those are the real deal. That is just an actual onion dropped in a fryer. Every onion ring in our basket could have collared a mid-sized dog.
Starting point is 00:05:20 It's true, I guess. Everything really is bigger in Texas. But is it also better? Today on Freakonomics Radio, the first installment of a two-part series on Dallas, because, you know, it's big. Today, we start with what's Dallas doing right? Every single city in America would benefit from more permissive land use policies, more predictable real estate development processes. We encounter Texas hospitality. It's a really friendly place. I mean, noticeably friendly.
Starting point is 00:05:55 It really is sincere. It's a way of life. And we make a list of Big D's big problems. Crime and crappy schools is probably a good start. Crime and crappy schools? That would make a New Yorker feel right at home. So should I move? Not so fast. I still sometimes cry myself to sleep because I live here. This is Freakonomics Radio, the podcast that explores the hidden side of everything, with your host, Stephen Dubner. Americans don't move nearly as much as they used to. In the 1980s and 90s, more than 6 million people moved each year from one state to another. These days, it's usually around 4 million a year, as was the case in 2020,
Starting point is 00:07:03 when 4.3 million Americans moved to a different state. Some of that was plainly driven by the pandemic. We're in a time, it's always been this way, but especially now, where places are competing ferociously for human beings based on quality of life considerations. That, again, is Cullum Clark, one of the two authors of that City Journal article that got me interested in Dallas. All over the heartland, there are relatively unglamorous places that are trying really hard to step up their game in the competition for talent. They may not say they're imitating Dallas-Fort Worth, but in effect, they are. Clark is an economist at the George W. Bush Institute and Southern Methodist University. He is also a fifth generation Dallasite. Lest you think Clark is just a booster,
Starting point is 00:07:53 consider this number. From 2010 to 2020, the Dallas-Fort Worth metro area grew by around 1.3 million people. About 40% of that was from domestic migration, 20% from international migration, the rest from natural population growth. Demographers do not expect this trend to stop. By the mid-2030s, they predict, the biggest metro areas in the U.S. will be New York, then Los Angeles, and then Dallas. What's attracting so many people to the Dallas area? Think about all the reasons you might move from one place to another. A job opportunity, maybe you move for love or to be near family, maybe you're just sick of shoveling snow. Whatever the reason, when you're considering a move, there is one metric
Starting point is 00:08:45 that usually takes precedence over the rest, cost of living. And if you're thinking of moving from a place like New York or California to Dallas, you will be in shock at how much less you will spend on a home. Rents in Dallas are about half what you'd pay in New York. Groceries are about 40% cheaper. Downtown Dallas, not surprisingly, is among the most expensive areas in the region. And it does feel like a real city, even if you're coming from a place like New York, although it is significantly less dense and the density fades fast as you leave the city center. As you head north towards Oklahoma, you get into what used to be small towns and suburbs. Plano, Frisco, Allen, McKinney, Denton. But they're not small anymore. The population of Dallas itself grew 9% over the past decade to 1.3 million people,
Starting point is 00:09:40 which sounds impressive until you compare that to the counties up north, Collin and Denton counties, which include Frisco and Plano and the other cities Cullum-Clark just named. Their population grew 36%. Those two counties now have a combined population of around 2 million people, which is more than all but four cities in the U.S. All of these cities have daytime populations roughly equal to their nighttime populations, in some cases, bigger. So what that tells you is people are busily working there every day. They are big centers of business. And what do you call that when you've got a huge metro area made up of a bunch of emerging cities as opposed to just a central downtown in the
Starting point is 00:10:26 suburbs? Well, I think urban economists like me are wrestling to name it. What I tend to like as a way of describing it is kind of an emerging polycentric metropolis. We've oftentimes had this idea that you have the central business district. When you say downtown, there literally is only one of them. That model is breaking down all over America. The question is, then, to what degree do you really have strong alternative downtowns, really strong job centers, commercial centers, lifestyle centers emerging in far-flung places? And Dallas has done that in some ways better than anywhere. Okay, so let's put aside the polycentric metropolis for now and focus on the city of Dallas. Before flying down from New York, back when Mayor Eric Johnson was still speaking to us,
Starting point is 00:11:13 I had asked him to describe the Dallas neighborhood where he lives. I live in East Dallas. East Dallas is really beautiful. We're near White Rock Lake in an area where our city's arboretum's located. So, there's a lot of natural beauty. It's not where I grew up, but it's where I live now. And I'm raising my kids and I'm married and we have lived there about eight years or so. And you live in a house on a lot with lawn and stuff like that? Yeah. I live in a single family home on a decent sized lot. So it's pretty cool. And is it walkable or not really?
Starting point is 00:11:50 The area where we are is very walkable and the lake is right there. It's got a great trail system. Right. But if you want to go meet a friend for lunch or have coffee in the morning with a colleague, are you typically getting in your car, walking on a bike? Dallas is more of a driving town than maybe some of the cities that you might be used to if you're a New Yorker on the East Coast. Car is pretty central to the culture here, but it's a city that has made a concerted effort over the years to become more walkable. But I still would say if you were going to go meet a friend for lunch, you probably would get in your car. And then describe the neighborhood where you grew up. I grew up in an area called West Dallas. So basically that area growing up was really rough.
Starting point is 00:12:35 A lot of violent crime and drug-related crime. And it's changed a lot. It's gotten a lot better, but there's still some issues. We should say, while most big cities had significant increases in violent crime in 2021, the numbers in Dallas fell by nearly 10%. Some of the credit has gone to new police chief Eddie Garcia, who is an advocate of using data analytics to deploy police more efficiently. It's worth noting that the crime drop in Dallas was accomplished with fewer arrests. So that's a positive. I asked Cullum Clark to take a step back and look at the even bigger positives to state his case for why the Dallas-Fort Worth region has been drawing
Starting point is 00:13:18 more people than anywhere else in the country. I would suggest that there are three things that have made all the difference. One is offering relatively affordable, high quality of life. Secondly, being an exceptionally welcoming place to newcomers of all kinds. That's a really important thing for a city to get right, but so often they don't. And third, operating more or less commerce-friendly, growth-friendly policies, particularly in the suburban areas. So let's say we take those three major factors and I want to steal from Dallas. Give me one specific for each of the three factors. On the affordable quality of life front, I think every single city of any size in America would benefit from more permissive land use policies, more predictable real estate development processes. We have snarled up our whole home building industry
Starting point is 00:14:12 in red tape in America, and it's strangling our cities. Now, the downside of that permissive housing policy is what? I know that Dallas and Texas in general have relatively lenient labor laws, for instance. So, do you have a much higher rate of workplace injuries in the construction industry? No, I've never seen any evidence of that. But I think that on the land use front, the single biggest reason why land use rules are too strict in too many places around America is that the sentiment among local people against change is typically strong. So, you could say the downside
Starting point is 00:14:45 of relatively permissive rules is that change, in fact, will come. I think it's possible to persuade people that when change comes to their city, it will fund quality of life improvements, new amenities, new parks, and new arts facilities, and so on, and they will benefit. And that's an issue of communication, leadership, helping people to see the big picture. That's hard work, but it seems to be doable. Let's go to your second point, welcoming newcomers. That's a nice slogan to make people feel welcome, even in a place where they might feel out of step with the established mores. But how do you actually do that? One issue is really cultural, attitudinal,
Starting point is 00:15:25 and I think nonprofit organizations, civic groups, business associations all can just sort of decide that they really like to bring in the new folks and give them responsibility. Then there's an issue of public policy. And I am inclined to think there that getting the policies right is a game of singles and doubles, not home runs. Things as simple as print your city forms in a lot of languages. A lot of it can be kind of little things, but they do seem to add up. Your third factor, commerce friendly. What does it mean specifically to be commerce friendly? All over America, we have overly restrictive occupational licensing rules.
Starting point is 00:16:05 We make it too hard to start a hair braiding salon to use arguably the most famous example. This happens everywhere, but there's a lot of variation across places. Then it probably won't surprise you to know that the Dallas-Fort Worth area scores better than most in terms of ease of starting a new business. One recent study ranked the Dallas metro area the 18th best place in the
Starting point is 00:16:29 U.S. to start a business out of the 100 largest metros. L.A. was 52nd and New York 60th. One big factor Clark did not mention was taxes. In the state of Texas, there is no state or local income tax. You may have heard about that in all the news coverage about why people like Elon Musk and Joe Rogan have been moving to Texas from California. Texas relies primarily on a 6.25% sales tax and federal funds to balance its books. Texas cities, including Dallas and its suburbs, also rely on property taxes, and many of them tack on an additional 2% of sales tax. Overall, the average Texan spends about 8% of their annual income on state and local taxes. In California, it's 9.5%, and in New York, 13%.
Starting point is 00:17:21 But taxes, of course, pay for public goods and services, schools, police and fire and hospitals, transportation. So how does low-tax Texas balance that? We need to wrestle a little bit with the trade-off between maintaining relatively moderate taxes and seeing good investment in public goods. Sky-high tax rates will kill an economy. Total failure to invest in public goods will kill it just as well. America has lots of big cities that have the worst of both worlds. High tax rates with supposedly the promise of good public goods, and yet the public goods don't deliver. Go ahead, point at New York. I said New York has gigantic efforts to use
Starting point is 00:18:05 taxpayer dollars to create affordable housing for lower income people. And yet it succeeds less than most cities at that. There are a number of cities that are higher than average taxes and have below average educational attainment levels, schools that underperform even by the standards of big American cities. So I also don't think it's accurate in Dallas-Fort Worth to think of us as having an extreme position of very low taxation and very low investment in public goods. I would say it's below average on those two things. But the question is, what exactly are we failing to do? Public transit is not at all a strength here.
Starting point is 00:18:42 And yeah, we have lots of things we could do on the education front that we don't have the money to do. Public transit is not at all a strength here. And yeah, we have lots of things we could do on the education front that we don't have the money to do. When people are thinking about moving, it's hard to overstate the appeal of good public schools. Oh, look, it's always about the kids. It's always about urban education. That's Ed Glazer, an economist at Harvard who studies cities. It is by far the most important thing. Now, unfortunately, it's the hardest thing. If you ask me which one I know how to fix, I mean, I don't know how to fix the politics of housing supply. I know how to make New York affordable.
Starting point is 00:19:10 You build 100,000 new units a year. That's a technological fix. Whereas the schools, they're a living, breathing organism with teachers and kids and kids from troubled backgrounds. It's just really hard. But if you gave me a magic wand to fix it,
Starting point is 00:19:21 I would fix those schools. And the public schools in the city of Dallas indeed need fixing. When I asked Cullum Clark's co-author, Joel Kotkin, for his list of the biggest problems with Dallas, here's what he said. Crime in crappy schools is probably a good start. And I asked Mayor Eric Johnson, who grew up in Dallas and started out in public school, if the schools have improved since he was young. They are better.
Starting point is 00:19:48 We still have a lot of challenges, though. It's a school district that's a poor school district. It's a school district where non-native English speakers are a large portion of the district. And so there are extra costs and challenges to achieving educational superiority in that respect. So it's a challenge. It's hard. The mayor himself had an unusual trajectory in school. He grew up with working class parents, both of whom had multiple jobs. He shared a bedroom with three siblings. He went to the public elementary school through first grade, where he had a teacher named Miss. Ferris. And here's how he recalls what
Starting point is 00:20:27 Ms. Ferris saw in him. Wow, he really seems to get it and really wants more and wants to do more. And then for her to go the extra mile, not just go, that's neat, and then just give me a bunch of A's. But she said, not only do I see potential there, but I feel like I got to go do something about this. What she did was get him placed in a scholarship program through the local Boys and Girls Club to attend a prestigious prep school called Green Hill. She went and found a program that literally took kids like me, paid for them to be tested, and if they did well enough on these admissions tests to place them in a prep school and then provide the transportation and the scholarship money for them to go.
Starting point is 00:21:07 Johnson graduated from Greenhill and went on to Harvard for undergrad, then got a law degree from Penn and a master's degree in public affairs from Princeton. Given his background, Johnson calls himself a unicorn. I'm a unicorn in the convergence of some amount of academic ability in a tough circumstance and someone identifying that and then matching that with the resources that were necessary to take advantage of it. Meaning there's a lot of kids with that potential who just aren't identified or given the opportunity. Correct. I don't think that the talent and the desire part is as rare. I don't think it's every child, but I think there's plenty of children in every neighborhood and every city in this country who've got plenty of academic ability and plenty of desire.
Starting point is 00:22:01 But what you don't have a ton of are my first grade teacher, Ms. Ferris. As mayor, Johnson is trying to make unicorn stories like his less rare, not just in education, but in the labor markets too. More and more now I'm talking about workforce development and upskilling, where people whose skill set is not really a great match for the jobs of tomorrow. If we focus on giving people the means and the ability to fill these jobs that exist, but are going unfilled because people really aren't prepared for them, then to be honest with you, a lot of these problems really will solve themselves. We talk about affordable housing, for example. Housing becomes
Starting point is 00:22:43 more affordable when your income goes up. So we need people to make more money. We need people to have more wealth. And those are the types of things that happen when people get a better education and have better skills. And how much leverage does the mayor of Dallas have to push this kind of policy? Dallas is a wonderful place to live with a totally awful city government. After the break, what it means for a big city
Starting point is 00:23:10 to have a form of government where the mayor is weak. Also, how the Dallas Museum of Art just got hold of an exceptionally desirable painting. This was a painting that, since inception, basically was promised to the museum. And it was lunchtime in Dallas, so guess where we went to eat?
Starting point is 00:23:29 Sour cream, onions, cheese, chives, chopped beef, and barbecue sauce. Really good. This is Freakonomics Radio. I'm Stephen Dubner in Dallas, Texas. We'll be right back. As with anywhere, to understand the present of Dallas, it helps to understand the past. For much of its history, the city had racism baked into its policies and its neighborhoods. In 1916, Dallas became the first city in Texas to impose housing segregation by law. In the 1950s and 60s, Black neighborhoods like Deep Ellum and Stringtown were practically destroyed by the new interstate that plowed through them.
Starting point is 00:24:21 In the 1970s, the city of Dallas seized Black-owned homes to expand a parking lot that's used three weeks a year for the State Fair of Texas. We still very much have the legacy of Jim Crow. We had all kinds of ugly racial policies. That, again, is the economist Cullum Clark. The Kennedy assassination in November 1963 led people to develop this idea that Dallas was, quote, a city of hate. Here is a bulletin from CBS News. In Dallas, Texas, three shots were fired at President Kennedy's motorcade in downtown Dallas. People looked in the mirror and there was a lot of aspects of the city that people didn't entirely like. And this business and political establishment really at that moment said, we're going to modernize the place dramatically.
Starting point is 00:25:06 And they did. In the years after that, Dallas became about the most un-nostalgic, forward-looking, ahistorical city you could imagine. In the process of becoming ahistoric, as you put it, and especially in dealing with the ugly racial policies, were there specific measures meant to correct those policies? Or was it more of a let's change the business environment and hope that the ugly racial history can fade into the past? I think there was a typical set of policies, but an atypical set of attitudes. The standard policies, the city went through, busing, school desegregation, implementation of the 1968 Fair Housing Act, all of these things were standard. I think what was a little atypical was this very concerted effort on the part of the business leadership to dramatically change the tone, to really incorporate a black voice. And then before long, a set of Hispanic voices. It wasn't long after the 60s,
Starting point is 00:26:05 before Dallas had two Jewish women who were mayor, and not so long after that, the first black man to be mayor, and today's mayor, Eric Johnson, is also a black man who grew up in Dallas. So there were pretty fast changes on that front, the spirit of the business community. In fact, my grandfather was a Dallas businessman and was very involved in a lot of those discussions. So I grew up as a kid around the dining room table hearing about everything that I'm describing right now. That said, the Dallas metro area today is still quite segregated. One recent study found it to be the seventh most economically segregated of 53 metro areas in the U.S. that have more than a million people.
Starting point is 00:26:50 The southern part of Dallas is an area that's physically bigger than the entire city of Atlanta, very large majority Black or Hispanic. And in this vast area, the total number of homes and jobs has gone down this century, not up. It's a difficult story. We're talking about a very large part of the city. And that's a former mayor of Dallas, Laura Miller. You know, it's 60% of the city of Dallas landmass, but it only provides 10% of the property tax revenue. So that gives you a sense right there about how upside down things are. There have been repeated efforts to boost South Dallas, but it's hard. One big reason? For a city this big, Dallas has an unusual system of city government.
Starting point is 00:27:33 The two basic types of city government in this country are council manager and mayor council. That, again, is the current mayor, Eric Johnson. We have council manager here, and the hallmark of the council manager form of government is that you have placed in an individual who is not elected, but who is appointed by the city council, you've placed within that person operational control over the city. And that person is what we call a city manager. While some other big U.S. cities do have council manager governments, the five largest—New York, L.A., Chicago, Houston, and Philadelphia—all use a mayor
Starting point is 00:28:14 council system, which gives the mayor much more leverage over policies, budgets, and so on. In Dallas, Eric Johnson does not have that. We essentially created a structure where the city council functions as a board of trustees and the city manager performs as a CEO. And so the mayor and a council manager form of government will often be more like the chairman of a board. And of course, across corporations, chairmen vary in their amounts of power and influence, depending on how well they can control their board, how visionary they are. And that's sort of similar here. That was a pretty diplomatic description of Dallas government by the current mayor.
Starting point is 00:28:55 Former Mayor Laura Miller is less diplomatic. Dallas is a wonderful place to live with a totally awful city government. Can you expand, please? Or show your homework, perhaps? Yes, yes. The problem is when you have a weak mayor form of government, and then you couple that with mostly single-member districts. We have 14 single-member districts, and we have one person elected at large, the mayor, who has no more power than the 14 with single member districts, you are in a completely dysfunctional environment where there is zero accountability for anything that goes wrong. But you just said Dallas is a great place to live with a terrible government.
Starting point is 00:29:38 That suggests that maybe a good city government isn't that important to having a good city? Generally, if you pick up the trash and pave the streets, you can be fine. But it's really unfortunate because half our city is undeveloped and low income. So if we had a strong mayor, I really believe, no matter who it was, I wouldn't even be picky. I think that they could make a substantial difference instead of just limping along. And is the reason that the development is not happening in the way that you'd like it to happen because of this weak mayor government? Well, the problem is the developers have the upper hand all the time at City Hall.
Starting point is 00:30:17 And so they come in and they pick all the choice places in the city to develop, and they leave all the places that are rough. The council manager form of government practiced in Dallas does have at least one advantage. A recent study found that cities in the U.S. with so-called weak mayors are more likely to stick to their budgets than when there's a strong mayor. But Miller argues that, in Dallas at least, the weak mayor setup has made it hard to address big problems. When I was first elected mayor, I said, our number one problem is our housing department. It's broken. So I got McKinsey to come in for free and tell us how we could build affordable housing. And the city manager said, thank you very much,
Starting point is 00:31:02 and put it up on a shelf, and it never happened. So the huge disconnect in Dallas is you have one person, one, who's elected citywide. And they have ideas, and they're ready to go, and they can't execute. I get an email almost every day from Eric Johnson, the current mayor, just as a constituent, saying, oh the council's doing the wrong thing and the city manager won't call me back. And I'm like, oh, my God. And he's bearing it all out there that it's dysfunctional. Sounds like high school. It needs to change. In that particular instance, who are you blaming more, Johnson or the city manager? You know, I blame them both. They're two strong men who are fighting publicly, which is not good. But I certainly relate to the current mayor who was elected from a very vast field of people with a vision. Let him do the vision. Back on the ground in Dallas, it's lunchtime.
Starting point is 00:32:00 We returned to the scene of last night's pig out, Sonny Bryan's smokehouse. We invited Cullum Clark, the economist who's been explaining Dallas to us. We also arranged to meet the owner, Brent Harmon. Brent, I'm Stephen. Nice to meet you. Stephen, nice to meet you. Thanks so much for being here. I'm Cullum Clark. Brent Harmon, nice to meet you. Do you know each other at all?
Starting point is 00:32:20 I don't think so. So I'm an economist. I work at the George W. Bush Institute, leading the domestic economic policy program there and at SMU. I work a lot on economic development issues around cities, including this city. And through that, wrote about Dallas and got introduced to these guys. How about yourself? I'm just a barbecue guy, but it's a family business. So I went to Baylor and got an accounting degree and realized that I didn't want to be an accountant, so I was like, what the heck am I going to do now?
Starting point is 00:32:51 And so at the time, we had a couple of restaurants, and Dad said, hey, come help us out at the restaurant, and 25 years later, I'm running the company. So it was never the plan, but it turned out to be the best plan. Sunny Brian's, I have come to learn, is a Dallas classic. This location opened in 1958 and hasn't changed much since. It was built on farmland a few miles from downtown. Now this area is a busy and still growing hospital district. Late last night in the driving rain, it was nearly empty. Today,
Starting point is 00:33:25 bright and sunny, it's full of people from all over. What's really powerful about this particular restaurant, but in barbecue in general, is it appeals to the masses. It's the oil men and the oil field workers sitting side by side. It's the doctors and the ambulance drivers. It's teachers and executives. And there may be a limo that pulls up and the limo driver's going in to get food for some rich dude. I asked Harmon why he thought Dallas has become such a magnet for people moving in from out of state. It's a really friendly place. I mean, noticeably friendly. I remember going to visit my brother when I was in college and after three
Starting point is 00:34:01 days, I was like, I got to get out of here. This was where? New York City. I'm taking that personally just a little bit. And what about running a business here? How does Dallas and Texas do generally in terms of, you know, making it viable for businesses to open, to grow, to thrive? Because, you know, New York famously is difficult. Yeah, yeah. I have friends that operate business in other states, and I hear their stories, and I can't believe what they have to go through.
Starting point is 00:34:31 Give me an example of something that they have a hard time with that's easy here. Simple things we could do to sort of modify our business that in California might require two permits and four inspections and a six-month waiting period. And here, you just do it. All right, let's talk about the food here. Colm, describe your food there. I am having the combo plate with pulled chicken, pulled pork, and cheddar jalapeno sausage. So I was thinking barbecue is one of those foods that began out of necessity.
Starting point is 00:35:06 And it's, you know, cheap. It's the cheap cuts, right? Sure. But then it becomes a thing. And I'm probably reaching here. But I was wondering if there's any metaphor between the barbecue idea and Texas or Dallas, which is you take something that's not the prime cut necessarily. Right. Texas or Dallas, which is you take something that's not the prime cut necessarily and find a way to fix it up in a way that makes it very desirable. I think you're onto something. I think
Starting point is 00:35:32 that can be said of, in some sense, the whole state, right? Whoever settled here always found it difficult. The native populations were very thin here. They did not find it very appealing. The Spanish Empire never really did much succeed in getting very many people to colonize the place, hence they couldn't hold on to it. And then once the westward expansion of the United States came here, I mean, it was a dreadful place to be, right? Really, really hot, mosquitoes. Man, you're really a good salesman for Texas.
Starting point is 00:35:59 And yet, as you say, they figured out how to actually make it a thing. So Texas is the barbecue of states. Well, I like your metaphor. Dallas isn't on the coast, and it's not on any navigable river, so it doesn't have a lot of reason to exist historically. And Dallas was never a huge oil town. It exists where it does because of modern transportation. Because at first they laid the transcontinental railroads.
Starting point is 00:36:24 They chose this as a junction. The place really got going because it was at this transportation junction as a cotton trading entrepot, like cotton farmers could bring their product here and find a market for it. So cotton was big early on. It developed as really the financial center of the state. So you got banking and insurance and so forth. And then what was the real breakthrough, the thing that really made the city work was tech. A little bit different than the tech of the West Coast. You had the semiconductor chip. Texas Instruments was an oil field services company with Jack Kilby and a few other engineers experimenting with this,
Starting point is 00:37:01 you know, integrated circuit idea. It's some story. A town without a port or even a big river, without many natural resources, scratching and clawing its way to what will soon be the third largest metro area in the United States. And it feels like that, a metro area more than a city, which is fine.
Starting point is 00:37:26 Just not what a New Yorker like me is used to. We're used to walking places, maybe jumping in the subway, popping out at Times Square or maybe a museum. When I mentioned this to Cullum Clark, he offered to drive us back downtown to the Dallas Museum of Art. We got in his car and drove back toward the city center, past a renovated version of Parkland Hospital, where John Kennedy died in 1963.
Starting point is 00:37:52 So we are just now alongside Clyde Warren Park, and we're basically approaching downtown Dallas and also approaching the Arts District. Dallas has built this really fabulous Arts District with, you can see right in front of us, the Dallas Museum of Art, and then going that way to the east, the Meyerson Symphony Hall, a relatively new opera house, new theater, and all of these things are in close walking distance to each other. So you've made part of Dallas walkable. We are becoming more walkable all the time, but starting from a very low base.
Starting point is 00:38:28 We had called ahead and arranged to visit with the museum's director, Agustin Arteaga, who is originally from Mexico. He met us at the museum's front door. As it turned out, the museum director and the economist know each other. Good to see you. Very nice to see you. Agustin, how are other. Good to see you. Very nice to see you.
Starting point is 00:38:45 Agustin, how are you? Good to see you. We chatted about our favorite art museums in New York. The Met and MoMA, of course, the Frick and the Whitney, the Guggenheim and the New Museum. If somebody wants to see something that there's not in New York,
Starting point is 00:39:01 you have to come here. We have 13 Mondrians in the museum. And that name in this gallery is named after the James and Lillian Clark may sound familiar to you, too. My grandparents. Get out of here. Really? Yeah. That must be so exciting for you to come see this.
Starting point is 00:39:23 All my old friends that I grew up with. Been their living room that I was in as a kid all the time. That's right. Cullum Clark, mild-mannered economist, is the grandson of art collectors whose paintings by Piet Mondrian now hang in the Dallas Museum of Art. They just threw themselves at it. And they traveled the world and read very extensively and met a lot of living artists and built quite a collection.
Starting point is 00:39:49 Do you know anything about the particular attraction to Mondrian? I think that Mondrian made sense to my grandfather. I think he was a very analytical, abstract, elegant thinker, my grandfather. And I think that, of course, Mondrian himself was that. So when your family was getting ready to make the donation, did you grab a few for yourself, I hope? Oh, of the Mondrians that are in the closet? Yeah, that Nikki and Agustin don't know about. I know everything. There are elements of their collection in our house today. Yes.
Starting point is 00:40:21 Goodness. I have to say, all of a sudden, Dallas feels like a very small town. Oh, it is. It is. And then we round a corner and come across this. This is the famous Basquiat that just came to the collection. It's so stunning to see one hanging on a museum wall because it's just so rare. Yeah. Yeah. It's very exciting. And this was a local, he was here for a time, right? He came to visit. Jean-Michel Basquiat, one of the best known painters of the past half century, died at age 27 of a heroin overdose. His work became phenomenally expensive. And as a result, most of it is owned by private collectors who routinely outbid museums. If you want to hear more about how that works, we recently put out a series called
Starting point is 00:41:10 The Hidden Side of the Art Market. Anyway, it is rare to see a major Basquiat in a museum, and this one, called Sam F., is a beauty. It's a portrait of a Dallas art collector named Samuel Feldman painted on a wooden door. He was very interested, attracted, and felt so welcome that he decided, being very energized, to paint. So they went down the basement and found a door, and this is the door where he decided to paint. Sam Feldman and his wife Helga gifted the Basquiat to the Dallas Museum upon their deaths. Sam died in 2001, Helga just last year. The painting was installed over the summer. The museum has also just opened a special exhibit of 10 Van Gogh paintings of olive groves in the
Starting point is 00:42:02 south of France. They were made as part of a series, but had never before been exhibited as a group. This show was a result of a 10-year project led by the Dallas Museum's interim chief curator, Nicole Myers. It's a nice view. How are you? Welcome. Myers walks us through the exhibit.
Starting point is 00:42:21 I think one of the most surprising things for me was that one of these olive grove paintings is pretty much a pendant to the Starry Night. The Starry Night is Van Gogh's best known painting. He mentions them in the same breath, in the same letter to his brother Theo, where he announces that he has finally a study of olive trees and a study of a Starry Night. One of them is worldwide famous and the other is equally interesting, really accomplished, stellar painting that's less well known today. I've never heard that word applied in that way, pendant. Pendant, a pair, so they were meant to go together. So all throughout his career, he just has a penchant to produce works
Starting point is 00:42:56 in decorative ensembles or groups, whether it's a pendant or a pair, a triptych. He was very practical, he knew a lot about the art market. In fact, a prior career, he was a dealer. So in many ways, he saw this as an opportunity to place artwork of his in the homes of upper middle class collectors in Paris. Maybe you couldn't buy a series of 10 paintings, but maybe you could afford to buy a triptych from within that series. So it was always a marketing strategy from the beginning. Okay, so this is a terrible question to ask you, but I'm going to ask it anyway. Pretend that you had to persuade me that this is superiors of the Starry Night. I think I would lose my stripes as a curator if I tried to use superlatives like that.
Starting point is 00:43:37 For me, what's fascinating is that they are quite literally day and night. They are both paintings that have a lot of spiritual symbolism, and that symbolism is tied to the trees. So in the Starry Night there's a giant cypress tree that connects earth with sky with the heavens. Cypress trees in the Mediterranean being symbols of immortality. The olive tree has also a deeply spiritual meaning in the Judeo-Christian tradition, of course, is in the Garden of Eden, is in the Promised Land of Canaan, it's a setting for Christ in the Garden of Olives. But in classical antiquity and in the ancient Mediterranean world, it was a symbol of peace and abundance, but also renewal and rebirth. Because olive trees, you can cut them down, you can burn them,
Starting point is 00:44:15 and they regenerate from their roots. They're adapted to thrive in really poor conditions. So they become this symbol of life and reemergence. You can cut those olive trees down, Meyer says, and they'll regenerate from their roots. Just like you have to regenerate your roots if you move from one place to another, like so many people have been doing with Dallas. They're adapted to thrive in poor conditions, she says. Like Dallas itself, without many natural resources, and like a New Yorker,
Starting point is 00:44:47 perhaps someone who's thinking what it would be like to move to Dallas. As it happens, Nicole Myers lived in New York for several years. She got her PhD in art history at NYU, and she worked at the Metropolitan Museum. I asked if she had any advice for someone who might be thinking about moving to Dallas, but worried they might have a hard time acclimating. I think I would say to not be afraid of the unknown. I think if you've never been to a place, there could be a lot of assumptions, everything from pop culture to politics. And I would say withhold judgment until you come. You hear different languages on the street, all throughout the galleries of the
Starting point is 00:45:23 museum, incredible universities. There is something for everyone. So I would hope that they would be open to the idea and not shortchange what they think they might know about Dallas. It is a fantastic place to live. I told Myers how Brent Harmon, the owner of Sonny Bryan's Smokehouse, had talked about the extreme friendliness of Dallas. And look, I like friendliness. I am friendly sometimes. But when you're a stranger in a strange land, how can you trust that friendliness? How can you learn to believe the warmth is real?
Starting point is 00:45:57 You have to let your guard down. It is actually sincere. When I first came down to this area, you go to even just a convenience store and the person behind the counter is so nice to you that I would sort of clutch my purse, thinking they're up to something, I'm going to get mugged at the CVS. Not the case. It really is sincere. It's a way of life, and it's lovely. But you have an appropriate level of cynical expectation coming in.
Starting point is 00:46:17 I do. If I move here, I need you to help me get over my... That's a deal. When are you coming? We'll see how the rest of our tour goes. We can start talking neighborhoods. Okay. The tour continues next week. Among the questions we'll ask,
Starting point is 00:46:32 what if you find the politics in Texas a bit too Texan for your taste? What's happening in Texas is the microcosm of what's happening in large parts of America. Also, is the city of Dallas really why everyone's moving to Dallas? We've already fallen behind the northern suburbs, where all the companies are really moving to. And we go visit those northern suburbs, where the real growth is happening. There are 15 cities, over 100,000 people in North Texas. To put that in perspective, there are a number of states
Starting point is 00:47:04 that only have one or two cities over 100,000 people. Freakonomics Radio does Dallas again next week. Until then, take care of yourself and, if you can, someone else too. Freakonomics Radio is produced by Stitcher and Renbud Radio. Our email is radio at freakonomics.com. This episode was produced by Ryan Kelly, and we had help this week from Jeremy Johnston, and in Dallas, from Zorik Sia, who runs Hello Studios. Our staff also includes Allison Craiglow, Greg Rippin, Zach Lipinski, Mary J. Duke, Morgan Levy, Rebecca Lee Douglas,
Starting point is 00:47:38 Jasmine Klinger, Eleanor Osborne, Emma Terrell, Lyric Bowditch, and Jacob Clemente. Our theme song is Mr. Fortune by The Hitchhikers. All the other music was composed by Luis Guerra. I wish we had an ocean. I wish we had a mountain. I wish we had a mountain. Then it would be over, game over. The Freakonomics Radio Network. The hidden side of everything.

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