Keep taxes low, regulations fair and predictable, and stand back and watch the jobs created. If you have ambition, confidence, and “know-how” – go to Texas!
by Wendell Cox
The American economy has had little to cheer about since the 2008 financial meltdown and the resulting recession. Recovery has been feeble, and many states continue to struggle. One bright spot in the general gloom, however, is Texas, which began shining long before 2008. Not only has Texas created jobs at a stunning rate; it has also—pace critics like the New York Times’s Paul Krugman—created lots of good jobs. Indeed, the rest of the nation could turn to the Lone Star State as a model for dynamic growth, as a close look at employment data shows.
The first thing to point out is that Texan job creation has far outpaced the national average. The number of jobs in Texas has grown by a truly impressive 31.5 percent since 1995, compared with just 12 percent nationwide, according to Bureau of Labor Statistics data (see Figure One). Texas has also lapped California, an important economic rival and the only state with a larger population. The Texas employment situation after the financial crisis was far less spectacular, of course, with the number of jobs growing just 2.4 percent from 2009 through 2011. But that was still six times the anemic 0.4 percent growth rate of the overall American economy.
The National Establishment Time-Series (NETS) Database, which provides detailed information on job creation and loss for firms headquartered in each state, can tell us more about Texas’s employment growth. NETS data are divided into two periods—the first from 1995 to 2002, the second from 2002 to 2009. During the 2002–09 period, small businesses of fewer than ten employees were the Texas employment engine, adding nearly 800,000 new jobs; of those, about three-quarters were in firms with two to nine employees, as Figure Two indicates. Larger Texas companies—those with 500 or more employees—lost a significant number of jobs over this span, and medium-size firms likewise shrank, trends that also showed up on the national level.
Figure Three, shifting back to Bureau of Labor Statistics data, shows that many of the new Texas jobs paid well. Indeed, Texas did comparatively better than the rest of the United States from 2002 through 2011. For industries paying over 150 percent of the average American wage, Texas could claim 216,000 extra jobs; the rest of the country added 495,000. In other words, the Lone Star State, with 8 percent of the U.S. population, created nearly a third of the country’s highest-paying positions. Texas also added 49,000 positions paying 125 percent to 150 percent of the U.S. average; the rest of the country lost 174,000 jobs in that category. As Figure Four shows, two sectors in which Texas employment did particularly well during the same period were natural-resource extraction (in fact, the state gained 80 percent of all new jobs in the country in that field) and professional, scientific, and technical positions. [........]Texas did lose 10,000 construction jobs, but that was a modest downturn, in light of the massive national slowdown in building caused by the crisis of 2008.
Vital to the economic health of Texas is that people are moving to its cities in droves. In 2011, Houston surpassed Philadelphia in population and became the country’s fifth-biggest metropolitan region, with 6.1 million people. Dallas–Fort Worth, with 6.5 million, was already the country’s fourth-biggest. [.........]
Though the national downturn has slowed job creation in Texas’s cities, they’re still adding jobs, sometimes briskly, unlike many other American metropolitan regions (see Figure Five). Austin’s strong information-technology sector and government-related work (the city is Texas’s state capital) helped propel 4.3 percent job growth from 2009 through 2011 (and 15.3 percent growth from 2002 through 2009). The number of jobs in McAllen, which benefits from increased trade with Mexico under the North American Free Trade Agreement, grew 3.7 percent. [.......]
What accounts for the resilience of the Texas economy, which has outperformed the rest of the country not only over the long term but during the Great Recession as well? A pro-business climate has unquestionably been a substantial advantage. In its annual ranking of business environments, Chief Executive has named Texas the most growth-friendly state for eight years in a row. (California has been last for the same eight years.) The reasons included low taxes and sensible regulations; a high-quality workforce (Texas ranked second only to Utah in that category in 2012); and a pleasant living environment (an eighth-place finish, slightly below sixth-place Florida but, perhaps surprisingly, far better than 28th-place California).
Part of the explanation for the high living-environment score is doubtless Texas’s low cost of living. In 2011, the U.S. Bureau of Economic Analysis put Texas’s “regional price parity,” a measurement of the price level of goods in an area, at 97.1, a bit lower than the national level of 100 and far lower than the California level of 114.8. Adjusted for cost of living, Texas’s per-capita income is higher than California’s and nearly as high as New York’s. Factor in state and local taxes, and Texas pulls ahead of New York.
More than three-quarters of the cost-of-living difference between Texas and California can be explained by housing costs. As Figure Six shows, Texas mostly dodged the real-estate bubble of the 2000s: the affordability of houses in large metro areas spiked in America as a whole but rose only modestly in Texas. A major reason that Texas real estate is so affordable is that the state lacks the draconian land-use restrictions that drive California housing prices into the stratosphere. [......]
All these considerations suggest that Texas is poised for further growth. And a final reason for Texans to be optimistic is that a major expansion of the Panama Canal will be completed in 2014. That could bolster the Lone Star State’s success by rerouting Asian commerce from West Coast ports to Texas alternatives, which are closer to the nation’s major markets.
Read the rest – The Texas growth machine
Tags: Texas, Wendell Cox
The fifty states have been referred to as “Laboratories of Democracy”. Each one experiments according to its nature and the will of its people, and the results are visible for all to see. In econoics (and political economy) we have two glaring differences between the State of Calfornia and the State of Texas. Texas is Republican, small gopvernment, and fiscal sanity. Californis is Democrat, big government, and fiscal irresponsibility. One of thes has grown throught the Great Recession, and one has high unemployment. But hey, California ha great welfare rolls.
personal liberty, smaller govt, state’s rights.
works every time its tried.
I beg the forgiveness of the Forum, but I wanted to quickly interject this….
Good apply Morning and happy Fat Tuesday to all! Live it up today, for tomorrow is Ash Wednesday, the beginning of Lent, a six week period of self-denial and solemn reflection and penance in preparation for Easter. Catholics everywhere (and some other denominations) will be displaying ashen crosses on their foreheads as a sign of repentance, but this isn’t directed solely to Catholics.
So many of our holidays are marked by feasting and gastronomical indulgence that rituals of physical denial such as Lent have all but been lost in many quarters, alas.
Think about something PHYSICAL- smoking, sweets, fast food, alcohol, etc., from which you could/should abstain for six weeks (or permanently for particularly destructive habits) and replace it with something more SPIRITUAL- reflection, prayer, charity, reading theological texts, etc.
When you get up tomorrow morning, begin your abstinence by replacing your physical gratification with some sort of spiritual fulfillment or penance for past transgressions. Reenforce yourself during periods of weakness with quiet reflection and prayer. DENY THE ANIMAL, FEED THE SPIRITUAL.
Think about it today and try it with me tomorrow if you like. The Easter season is one of the sorrow of death, followed by the rejoicing of rebirth and renewal, and we could all use a bit of renewal, right?
Have a wonderful day.
Iron Fist wrote:
And one nasty looking muffin top.
loss of personal liberty, larger govt.
works every time its tried.
I’m reminded of a joke about a headline we’ll soon see in our MFM newspapers: “End of the World — Women, Poor, Minorities Hardest Hit!”.
Gallup Poll: a majority of Americans disapprove of Obama’s gun control policies.
For those who don’t want to click through, it is 54-42 in our favor. Obama won’t listen, but I hope the GOP is. opposing Obama on gun control is the right thing to do, and it is also the politically favorable thing to do. I have no intention of watching the State of the Union speech tonight. I didn’t typically watch them during the Bush years. Why would I subject myself to Obama? We know basically what he is going to say.
@ Iron Fist:
And people internal migrating from NYC or California will change Texas into the same sh*thole the came from. They always do it.
Iron Fist wrote:
That’s an excellent point! We have the luxury of 50 experiments being simultaneously conducted into the most efficient and effective use of government and the financing thereof. Needless to say, different states have different demographics and one size does not necessarily fit all, but the wealth of options and possible combinations of policies is enormous.
That said, California and Texas have very similar demographics and the fact that they’re heading in opposite directions clearly shows that California’s crisis is not only economic, it’s systemic and it their abject arrogance precludes them from altering their failed system.
@ MacDuff:
a link for you on orthodox fasting.
from here
Guggi wrote:
texas was democrat until the 80′s.
now its red. looks like all of those non-texans who moved there helped them move to the right.
@ MacDuff:
That was a nice thought for a Fat Tuesday. Not my thing, mind you, but a nice thought anyway.
@ Guggi:
Maybe the Republicans should try to win those voters over. NY was a swing state until the 90′s. Then the GOP stop trying to win new voters.
@ coldwarrior:
Rick Perry California Tour: Governor Heads To San Francisco To Lure Business Owners To Texas. Be sure and watch the vid.
@ Rodan:
cali, connecticut and nj were republican
@ coldwarrior:
Maybe Republicans should try to win over new voters. Its just a thought. I laugh how the Party that supposedly supports Free Markets, hates having to compete for new voters. I guess their free market competition principles do not apply to politics.
@ coldwarrior:
Up until 92, when the GOP became a Rural based party and told the Suburbs to FOAD.
Rodan wrote:
smaller govt! mais non, mon ami!
the gop leaders love the largess of larger govt just as much as the dems. if the new fiscons can take aver we will win back what we have lost.
bush -- doubles the deficit! now that is no way to be a republican.
huckfunn wrote:
i love that. go into the home of the beast and rip its heart out!
coldwarrior wrote:
Very interesting and informative, thanks, CW!
if correlation were causation i could say that the influx of yankees into texas has made texas vote gop
scroll down to the graph
MacDuff wrote:
youbetcha.
coldwarrior wrote:
Democrats then were much more moderate than now and the influx of significant internal migration can change anything. I don’t know why but even when people admit that certain rules and taxes have made their living impossible back “home” they want the same rules and taxes in their new home. It’s the same in Europe.
Rodan wrote:
How ? Becoming “Democrats light” ?
coldwarrior wrote:
Austin is already a high tech jobs center. Cicsco, Dell, Intel, AMD and many others have a large presence here. Also, UT is a large research center for various sciences and industries. I think Guv Rick will have a successful hunting trip.
@ Guggi:
By going back to how they were in the 80′s. They were Socially Libertarian allowing differences on social issues, appealed to suburbanites by believing in Economic freedom and was not into nation building.
Look at the electoral map Pre 92 and You will see something changed.
Rodan wrote:
Times have changed. People are now into diversity and their right to entitlements. You have to educate them before you can “change back to the 80′s”. And even then I doubt it.
@ Guggi:
i dont buy the myth that people from the north are making the south more democrat. there is zero evidence to support this theory.
if anything, those who moved are more fiscon and libertarian and were not reliant on handouts from the govt. see the drain of the gop out of the north in the 80′s. i know people who moved to north carolina who were union-democrats and are now solid gop voters.
if we just look at voting records and migration since, oh say 1968, there is almost perfect correlation to show that gop/right voters moved out of the north and into the south, turning the north blue and the south red. it is far more complicated than that tho. what the evidence does not support is that people who moved south took some sort of left wing vision with them and are trying to impose it on the south. there is no evidence for it.
Guggi wrote:
this sint the first time the nation has turned to the left and became a ward of the state. wont be the last either. the political pendulum swings, it swings relentlessly and perpetually.
america in the early century went form progressivism to capitalism to socialism in 3 decades.
we are just coming off of almost 20 years of capitalism under reagan and clinton. the pendulum swings.
Good morning.here is an example of strict Chicago gun laws.
Michael Ward the gang banger that shot & killed Hadiya Pendleton was
on probation for a weapons violation.While out he was arrested for three
violations of break ins & trespassing, before the shooting.
Well this article helps explain why the Soros machine is obsessed with turning TX into a blue or swing state. They see something good and want to destroy it.
There is a great danger in every Western (style) country with democratic principles: people don’t like responsibilites but like to transfer power to the state. Democratic principles are not sexy but boring and exhausting. In sociology you learn (yes, I know it’s “sociology” OmG
) rules have always be chnaged by (middle class) people who were bored by the existing rules and norms.
Guggi wrote:
Unfortunately then sociology violates the key principle of education and proceeds to tell you how they feel the changes should happen.
(Even out here sociology might as well be called socialism 101. I couldn’t tolerate the blatant Sanger worship and wound up ditching a week.)
Mike C. wrote:
Cool, thanks for your kind sentiment.
http://www.nationalreview.com/corner/340236/gop-leaders-wield-unlikely-weapon-against-obama-bob-woodward-eliana-johnson
Republicans finally hitting back at O using his own tactics.
Mars wrote:
Examples, please ?
Guggi wrote:
I would compare Americans fleeing North to South with people fleeing eastern Europe for the West at every opporunity. Oppressive laws and regulations. Crumbling infrastructure. The cities of the South are comparatively newer than those of the North and Northeast. People remember why they left the old for the new.
Guggi wrote:
Indeed. Prosperity breeds sloth as well as the deconstruction and eventual destruction of those things that brought about prosperity in the first place. We are complex creatures who seem to handle failure and defeat far better than success.
Eye doctor appointment. Gotta go.
Guggi wrote:
In the class I took every solution to every problem was socialism. The only way to help a people progress, equality of outcome. The only good “primitive” people, the ones who utilized “community property”. Discussing how sexualizing children is actually good for the community. Detailing how great the “third sex” principle is a vital glue to hold society together.
And it went on and on and on. When the class spends over a week expounding the glories and virtues of Margaret Sanger without once mentioning her Eugenicist and racist views, you know you have a problem.
Of course as someone with a love of both physical and cultural anthropology, my antagonistic attitude toward sociology comes honestly.
@ Guggi:
The entitlement stuff is just one aspect, but its not the main culprit. It’s the attitude many Republicans are perceived to have. Many like Santorum come across arrogant and hostile to many Americans. Why vote for a party that is perceived to hate you? I am not saying that this is true, but the fact is many Republicans come across like their shit don’t stink.
Some Republicans like Bobby Jindal, Marco Rubio and Rand Paul do get and are trying to change the perception by not coming off as arrogant and hostile. But many in the party do not get it yet. Until they do, Democrats will continue to win elections by pretending to be everyone’s friend.
@ Mars:
Even out here sociology might as well be called socialism 101.
Aint that the truth. Sociology=Socialism.
@ Mars:
I like both disciplines, for me each of them has its insights.
http://www.economist.com/blogs/democracyinamerica/2011/02/picturing_politics
Interesting chart. A bit simplistic though.
Iron Fist wrote:
He would still get re-elected so does it really matter?
huckfunn wrote:
As long as they leave their liberal politics in the Golden State when they migrate to the Lone Star State.
Rodan wrote:
Unfortunately you can say the same thing about most liberal arts.
huckfunn wrote:
People fleeing from East to West adapt within one generation (or less) to Western (entitlement) politics. Germans in Eastern Germany vote in great numbers for former communist now called “Die Linke” (=”The Lefties”).
Speranza wrote:
I got lucky in Psych. Only two of my professors were flaming libs.
coldwarrior wrote:
Outside of banks, coffee houses, Chinese restaurants and head shops -- what businesses are left in San Francisco?
Mars wrote:
You did luck out.
Structural-functionalism is a major approach in sociology that is inherently very conservative.
Mars wrote:
I guess this is a misunderstanding. Revolts or Revolutions etc. are NOT the work of the masses but the work of a bored middle class. Even the Farmers Wars during the Dark Ages were started by middle class citizens and theologicans and NOT by the farmers themselves.
This is only a statement not an instruction.
@ Moe Katz:
hey would you like to do a guest post on that subject?
@ Guggi:
Most Communist revolutionaries are upper class. people. The base of the Democrats are very wealthy Hipsters.
@ Moe Katz:
OK Moe, who’s in your avatar eh.
@ Speranza:
Silicon Valley related industries, that get huge tax breaks but support the Democrats. I will never understand why Republicans support Tax Breaks for companies that hate them.
@ Rodan:
Lemme think about it. There are certainly schools of thought in sociology that fit a conservative worldview. Even Weberian sociology would be centrist or mildly liberal at most….
Macker wrote:
Those are Pole dancers. Thanks for giving me the straight line.
@ Moe Katz:
OK, I do think its a very interesting subject.
Why a Johns Hopkins Neurosurgeon Is Getting 2016 Presidential Buzz
@ Rodan:
Yep, Обама will destroy this guy too, just like he did with Herman Cain ’cause he’s an Uncle Tom….
@ Rodan:
You do run into mostly lefties in sociology departments in North America and Europe nowadays, that’s a valid observation, but not because there aren’t more conservative ideas available in the discipline. It’s just a question of fashion.
Rodan wrote:
because neurology is superior to all other disciplines in medicine.
Rodan wrote:
and the left is calling his speech inappropriate and are angry that he dissed the prez.
@ coldwarrior:
Proctology has its place, I’d argue.
Moe Katz wrote:
Not at my university. About two thirds are more conservative or independent and about one third is lefty. The lefty are relentless beaten in discussion by th others
Guggi wrote:
lefties
@ Iron Fist:
Coincidentally, 50 years ago, those facts were reversed. What were the economic conditions of those two states then. The three California Governors who preceded Moon Beam Brown were I believe, Nixon, Wilson, and Reagan. Texas was perennially a product of the Johnson Machine. California’s economy was booming and Texas at one time was struggling. As the Democrats left Texas for California looking for jobs, the roles reversed. So have the fortunes.
@ Guggi:
That’s good.
Maybe Texas can start annexing neighboring states. Possibly it can begin by constructing settlements…
@ coldwarrior:
See my #41.
@ Speranza:
He isn’t running for re-election. The Democrats in the Senate are, and they don’t have the Magic Fairy Dust® that Obama has. You’d better believe they care. That’s why Joe Manchin has already came out against renewing the “Assault Weapons” ban.
MacDuff wrote:
Obama will turn Fat Tuesday into Fathead Tuesday by wrapping it up with the State of the Union Address.
Forget “Groundhog Day” and six more weeks of winter; he will usher in four years of Lent.
@ Iron Fist:
They are dropping the issue. Its the only issue left the Republicans can do them damage on. Why help you opponent who is in trouble?
They have OFA and Obama has made it clear, he is going to campaign to keep the Senate and win back the House. Do not underestimate him nor OFA.
@ Iron Fist:
Обама with Magic Fairy Dust®…how apropos!
The WaPo is already preventing damage from O. argueing that the State of the Union Speeches never had much impact.
@ MacDuff:
Laissez-les bon temps roules mes amis!
@ Macker:
I figured you’d like that one!
how many of these phones are being used for street drug deals
in places like Chicago?
We know that some people got multiple phones.
@ Carolina Girl:
Does that mean let the good times role in French? If you ask me how I am guessing, its because French and Spanish are close and I can make out some of the words.
Guggi wrote:
They are part of the Regime.
Moe Katz wrote:
you can keep the gi and endocrine stuff. thanks
Special Charles Johnson thread at 2 PM! This one really is out there even for him.
@ Rodan:
Oui!
Rodan wrote:
Me neither. Makes no sense at all.
He is going to call for more “investments” meaning
more tax & spending.
Speranza wrote:
because these corporations are owned by shareholders who profit when less taxes are levied.
@ Speranza:
Jindal told them to stop being stupid.
See my #41.
@ coldwarrior:
But these same companies support the Democrats. Why do them favors, when they hate you? I get the economic rational, but if an entity is spending its money to defeat you, why help them?
Rodan wrote:
i dont care. the only function of a corporation is to make money for its shareholders, period. anything else is extracurricular.
people inside the corp might support dems, ‘the corporation’ as a legal and economic structure does not because it cannot. it can only make money for its shareholders as its only moral duty.
Rodan wrote:
good luck with that. the gop has been afflicted with stupid since 92
@ Rodan:
Republicans don’t view the State as a vehicle for “punishing your enemies”. They view lower corporate taxes as an objective good from all of the good things that it produces.
@ coldwarrior:
Bobby Jindal, Marco Rubio and Rand Paul are trying, but many on our side despise those 3. I wish them luck.
Rodan wrote:
Hey, the Republicans have Karl Rove, the Attack Shoat!
i’m going to guess he is in heart failure
Rodan wrote:
long is the struggle, hard the fight.
@ Iron Fist:
Maybe its time to change that view.
BTW, I have a hysterical CJ thread for 2. Check it out in preview, you state gets an honorable mention!
coldwarrior wrote:
You might find it more cheerful. Business is always looking up.
coldwarrior wrote:
Large corporations have a tendency to support increased regulation/taxation of their own industries based on the fact that such tends to crush start-up challengers and competition. They know they can survive it, but those annoying new guys can’t. And by backing such seemingly against-their-own-interests measures, they know they can get political breaks down the road. It’s actually pretty simple.
Moe Katz wrote:
@ coldwarrior:
he did the right thing.
@ Mike C.:
You nailed it!
Mike C. wrote:
the only function of a corporation is to make money for its shareholders, period. anything else is extracurricular.
crushing the competition in this manner, while not quite cricket, is still legal and makes money for shareholders.
@ Rodan:
Well, is should have been “roulez” not “roules” but yep -- the motto of the day down in the Crescent City today. The Zulu Parade should be getting underway in a few hours!
@ coldwarrior:
Oh, I agree with that, although we can see recent examples of that being ignored (GM? Solyndra?) But yes, the ethical purpose of a corporation is to profit shareholders, period.
bbl, i gotta get plastered.
@ coldwarrior:
Hey -- come back! I have a big bottle of Hurricanes at my desk! Made with Baccardi 151!
@ Rodan:
Must be good if we’re moving the dickless wonder over to this blog! That’s 11:00 a.m. my time, right? I’ll try to get completely caught up on my work. Don’t wanna miss that one.
Carolina Girl wrote:
hurricanes! love em!
(i am using plaster for some wall work…
)
Carolina Girl wrote:
I like your style!
@ Carolina Girl:
Yup, its a follow up to a post I did 3 years ago.
@ Rodan:
Notice that his favorite target was named American Patriot of the Year. Meanwhile, Chuckles languishes with his less than 6K followers. You’d think someone that important would have more. Hell, the people he attacks have followers in the high five figures.
@ lobo91:
Layers of editors and fact checkers…
@ Carolina Girl:
I saw epsiode 1 of Ripper Street last night. Will watch episode 2 tonight or tomorrow night. I will not watch a minute of the SOTU address.
@ Carolina Girl:
Check his Dan Rather thread from last week. The Leftists gave him hell.
Iron Fist wrote:
Yup…that’s why the MSM is so much more important than those silly bloggers writing in their pajamas…
//
@ lobo91:
I hear he’s also penning a strongly worded letter!
@ Rodan:
Well, then, Cheetos boy should be grateful that I and the BRC outed him as a fraud!
@ Speranza:
I rather love it -- it’s sort of CSI: Whitechapel I did a bit of a marathon over the weekend since there was no football on Sunday -- watched all four episodes in order. We’ll have to talk Sunday about it.
Carolina Girl wrote:
I am enjoying it.
I’d caution Texas with the old phrase, be careful what you wish for. Austin has been flooded with NYers. Recruiting Californians comes with political risk. Unfortunately when liberals flee a high tax state they take their prog mindset with them and repeat their social voting mistakes.
Buffalobob wrote:
See New Hampshire.
@ coldwarrior:
He had a mild stroke in 1991 which caused him to fall and hit his head but he recovered quickly. He may have had the pacemaker installed then.
@ Carolina Girl:
It’s raining here in Mobile today and yesterday so there haven’t been too many parades