Why Texas is thriving 10 reasons, not including Gov. Rick Perry
By Jeanna Smialek
New York Times News Service
WASHINGTON – Texas Gov. Rick Perry may credit much of the state’s recent economic success to the low-regulation, small-government philosophy he has espoused, but some economists say that the governor’s policies aren’t the most important reason.
On the plus side, the Dallas Federal Reserve notes that Texas entered the Great Recession late and came out of it early, with 2-percent job growth in 2010 and an expected 3 to 4 percent for 2011.
Of the 496,000 jobs added to the U.S. economy between fall 2009 and spring 2011, more than half of that job growth came from Texas – a finding Perry has bragged about recently.
On the other hand, Texas’ unemployment has remained stubbornly high. According to the Bureau of Labor Statistics, the state’s jobless rate increased from 8.1 percent in 2010 to 8.2 percent in June, while the unemployment rate in nearby states remained lower or dropped. And many of the new jobs in Texas have been government or low-wage positions.
Though economists say Perry’s low-tax, low-regulation policies have helped the state’s economy, there are many other reasons why Texas’ economy is thriving while other states’ flail. Here are 10 of them:
1. Rising oil prices
In January 2008, crude oil sold at $92.97 a barrel, but as of June 2011 it stood at $96.26 a barrel, according to federal Energy Information Administration data. Those rising oil prices may have been bad news for drivers, but they helped out the Texas economy, said Howard Wial, a fellow and economist at the Brookings Institution.
When oil prices are high, job growth in Texas historically has exceeded that of the nation, said Keith Phillips, the senior economist and advisor at the San Antonio branch of the Dallas Federal Reserve. According to Dallas Fed research, a 10-percent increase in oil prices leads to a 0.3-percent rise in employment and a 0.5-percent rise in GDP for the state of Texas.
“If you look at what states were expanding, they are almost all the energy states,” Phillips said. “When oil prices are high, our job growth is stronger relative to that of the nation.”
2. Government growth
Federal spending in Texas topped $227 billion in 2009, up from almost $107 billion in 2000, according to the Census Bureau.
How Many Countries In Texas - News
Many of those new residents are immigrants from Mexico and Latin American countries who work at low wages and help keep wage averages down throughout the state. Because cheap labor is readily available in Texas, employers looking for low-wage employees
According to the Texas Transportation Institute, in 2009 Americans wasted 4.8 billion hours sitting in traffic at a cost of $115 billion and 3.9 billion wasted gallons of gas. Meanwhile, nations around the world are investing in cutting-edge
Faltering public investments in developing country agriculture is undoubtedly an underlying cause of the current crisis and has undermined long term food security in many poor countries. In the last two years, the United States has made commitments on
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Many more are on currently on death row. Finally, the United States must remove the MEK from its list of terror organizations. Placing it there was done to placate the mullahs at a time when appeasement seemed to be an option.
Ten Reasons Why the Texas Economy is Growing That Have ...
Jeanna Smialek | The Houston Chronicle
Rick Perry may credit much of Texas’ recent economic success to the low-regulation, small-government philosophy he has espoused, but some economists say that the governor’s policies aren’t the only (or even the primary) reason for Texas’ economic health.
On the plus side, the Dallas Federal Reserve notes that Texas entered the Great Recession late and came out of it early, with job growth standing at 2 percent for 2010 and an expected 3 to 4 percent for 2011. And of the 496,000 jobs added to the U.S. economy between fall 2009 and spring 2011, more than half of that job growth came from Texas — a finding Perry has bragged about recently.
On the other hand, Texas’ unemployment has remained stubbornly high. According to Bureau of Labor Statistics data, the state’s jobless rate increased from 8.1 percent in 2010 to 8.2 percent in June, while the unemployment rate in nearby states remained lower or dropped. And many of the new jobs in Texas have been government and low-wage positions.
Though economists say Perry’s low-tax, low-regulation policies have helped the state’s economy, there are many other reasons why Texas’ economy is thriving while other states’ flail. Here are ten of them:
1. Rising oil prices.
In January 2008, crude oil sold at $92.97 a barrel, but as of June 2011 it stood at $96.26 a barrel, according to Energy Information Administration data. The fuel peaked at $134.02 per barrel in June 2008.
Those rising oil prices may have been bad news for drivers, but they helped out the Texas economy, said Howard Wial, a fellow and economist at the Brookings Institution.
When oil prices are high, job growth in Texas historically has exceeded that of the nation, said Keith Phillips, the senior economist and advisor at the San Antonio branch of the Dallas Federal reserve. He said Texas entered the recession late and came out early, mirroring trends in oil prices, which rose towards the beginning of the recession, fell in 2009, but have been steadily rising since.
“If you look at what states were expanding, they are almost all the energy states,” he said. “When oil prices are high, our job growth is stronger relative to that of the nation.”
Based on Dallas Fed research, a 10 percent increase in oil prices leads to a 0.3 percent rise in employment and a 0.5 percent rise in GDP for the state of Texas.
How Many Countries In Texas - Bookshelf
Texas almanac and state industrial guide
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