The Texas Miracle, Yet Again
We keep hearing about the Texas Miracle. It’s been mythic since “openly gay” Governor Rick Perry declared that Texas was in great shape, in no need of stimulus monies at all—after receiving enough to turn his state’s fourteen-figure budget deficit into a surplus. (UPDATE: Links added. And that final link was rather prophetic.)
So when the WSJ’s Economics Blog listed the Personal Income gains for major metropolitan areas (and some that wish they were), it came as no surprise that the great state of Texas has four areas on the list that show no decrease in Personal Income over each of the past two years. After all, there are only 85 areas of the 367 listed by the WSJ that show non-declines in Personal Income both from 2007 to 2008 and from 2008 to 2009.
Such an accomplishment certainly could not be matched by states with Severe Crises, such as Illinois or California, could it?
Oops. Four for each state. Well, at least all of those started (and ended) well below the National Average. Surely, Texas, with Austin and Dallas and Houston will show greater growth.
Oh, well. In fact, looking at the Bottom 10—the lowest total Personal Income areas that show no loss in each of the past two years, we find:
The bottom two and three of the bottom seven are in Texas. So the only one of the four that actually grew from a decent start is the one that has had a major influx in the form of the growth of Fort Hood. Let’s hear it for Private Enterprise!
But still four areas that didn’t decline (well, much; McAllen drops $1, but that’s rounding error) over the two years. Only a few states can match that. In addition to California and Illinois, they are:
- Georgia
- Indiana
- Maryland
- Michigan
- Missouri, and
- Illinois
Meanwhile, two states have more than four metropolitan areas of growth. I fully expect to hear about the “miracle” of five areas of West Virginia:
but fear there will be little about that bastion of Northeastern Liberalism, Pennsylvania and its seven areas with two straight years of Personal Income growth—including the Pittsburgh area, which is notably above the national average after trailing it in 2007.
I am not sure what the point of all this is, but at least DFW went from center of excellence to mediocrity nonparaleil in 2004.
Pennsylvania, New York and even California needed DFW to be strong, but Enron was from Texas, and Enron must be furiously stopped. Which means “it must stop being perceptible.”
If the author’s point is that DFW is where the Republican programme began to eat its seed corn, then I’d agree. Other than that, the presentation seems to lack a central premise.
Yours in postindustrial vigor,
Les Cargill
Ken,
Texas will be getting at least one more Congressional seat this redistrict. California will not get one for the first time in its history.
Texas is growing with people coming into the state in droves. California is losing people by the shipload. Yet even though our population is growing unemployment is low (for the country). California is losing people and still has growing unemployment.
Texas does a much better job at integrating our growing Hispanic population than California.
Texas did not participate in the housing bubble, except for the blue city of Austin (and even then just a little bit). California is bubble central.
Texas has a functional Government. California does not.
Texas is a business friendly climate, California is not.
Every Texas College I’ve been to on a college search (UT Austin, UT San Antonio, TCU, Texas A&M, Texas Tech, UT Arlington) have been building and adding staff, with millions in improvements. University of California is cutting staff, freezing pay, and planning to close campuses (Merced) and raising tuition off the charts.
Texas does not have an income tax. California does (it now maxes at 10.3% !!!!!)
That’s where the stories and comparison come from. A big Blue state vs. a big Red state.
El CEntro? Yuba City? McAllen? Yea, there big drivers…
Islam will change
Buff,
Where do you live in Texas?
DD,
DFW
Ken,
Another Point from the blue state that Obama hails from:
“These are the organizations that the State of Illinois owes $100,000 or more as of July 22, 2010, according to the Office of the Illinois Comptroller. For many small businesses and social service agencies, the delay in state payments has been ruinous. “
2000+ of them…
Linky: http://www.illinoisisbroke.com/vendors.aspx
Islam wil change
Ken,
How is personal income the proper measure for economic activity on a State Level?
I forgot one
Perry has better hair than Arnold, I think its becuase his head is full of fertilizer.
🙂
Islam will change
Very kind of you not to point out that Midland and Odessa were #1 and #3 in the % drop category at -8.4% and -7.2% respectively.
Everyone knows WV, PA and OH are experiencing explosive growth compared to Texas.
I find regionalism rather petty, the US is to economically integrated to engage in this kind of stuff. It would be much better for Texas if CA was strong, and vice versa.
Buff,
You say Texas has a functional government. That is in the eye of the beholder. It has a one party rule and meets only every other year. The Republicans are so sure to stay in power, they could spit the voters in the eye and they still would vote for them.
The state with the most uninsured, highest minimum wage workers, just marginal better than Mississippi in most other statistics. Not to forget, the nations 3 poorest counties are along the Rio Grande. Looks just like Mexico. And very high property taxes because it has no income tax. A tax that must be paid even when there is no income, rent does include the property tax, or you sleep in the streets.
Lysis,
Don’t forget the Blue reservation, normally referred to as Austin, other wise its open season all the time on Dem voters. No bag limit to boot!
The high property taxes kept us out of California’s housing bubble which is helping that once great state circle the drain.
Adn those are poor counties DUE to the fact they are next to Mexico. And there is really not much there.
And I would be very much in favor of making the Feds only meet once every other year. I wouldn’t have to worry about my wallet as much.
Islam will change