Contributors

Friday, September 02, 2011

Deep In The Heart of Texas

We've heard quite a bit lately from the latest GOP primary presidential candidate, Governor of Texas Rick Perry, about how he is a "job creator." He points to his state of Texas as being an example of what he can do for the entire country. He champions himself as being a less spending, less government and less tax sort of fellow and, by gum, that's just what he is going to do with the federal government if the American people give him a chance.

The problem with all of this is...well...it's not really true.

Take a look at this graphic.

Take note of the bright blue state of Texas. That indicates that Texas is spending at an amount greater than 3% above FY08 levels. How very interesting. Compare them to the other states that are spending less, many of which are not doing as well as Texas. Of course, this all comes with some good news for states in general.

So, Governor Perry doesn't really spend less as he say he does and likely recognizes the benefits of government spending. But what about his other claims?

Factcheck recently released an excellent piece that outlines a series of additional facts as to why Texas is doing so well. It's true that Texas has added a great deal of jobs recently but they have also been doing so since 1970. In other words, that's normal for them. It's really a no brainer when you think about it given that they do have some of that there black gold down those parts.

Throw in jobs being added in the natural gas sector as well as all of those government jobs I have mentioned previously and it makes sense that Texas is the nation's leader in job creation. Yet, this creation of jobs hasn't kept pace with the influx of people an unemployment has risen to 8.4 percent in the last two years. This happened while the national rate was dropping. And Texas, along with Mississippi, has the largest percentage of hourly workers at or below the minimum wage. The lone star state also has the highest percentage of people without health care (26%).

In addition, Texas didn't experience the housing bust as other states did because of...wait for it...government restrictions on loans! What's that you say? The government interfering in the free market to improve a market outcome? Yes. Yes they did. And it benefited the citizens of Texas and their economy.

Finally, while Texans don't pay a personal income tax, they still pay above the national average in sales tax with local municipalities able to add on to that amount. Property taxes (collected at the local level) are among the highest in the nation.

So, Governor Perry's claims make no sense whatsoever when you consider these facts. He talks a good talk game about less spending, less government, and less taxes because he knows that plays well to the true believers. But the reality shows that he is doing what is necessary to govern.

4 comments:

blk said...

Another fun tidbit about Perry is the Texas Enterprise Fund. This $345 million fund is used to lure companies away from other states.It sounds like it's Perry's very own slush fund for helping out his buddies at state expense.

It's amazing how government stimulus programs are terrible when Democrats do them, but when Republicans do them it's just fine.

Larry said...

It's true that Texas has added a great deal of jobs recently but they have also been doing so since 1970. In other words, that's normal for them.

Now Mark, I realize this is difficult for you, but let's exercise your vaunted critical thinking skills, shall we? Why has Texas been adding jobs at an enviable rate since 1970? Hmm, what could it be? Beautiful scenery and wonderful climate drawing people? Don't make me laugh.

It's really a no brainer when you think about it given that they do have some of that there black gold down those parts.

That's helped, but the real boom was a lifetime ago, and as prices fluctuate, it also brings busts. The 1980's oil bust really hurt Texas. The number of people employed in drilling steadily climbed from 2002 to 2009, then fell off a cliff and is barely more than it was in January 2001. Texas is a lot more diversified now, though.

And one reason unemployment has risen is because we're getting a lot more people moving here (mostly from Blue states) looking for work. That helps the unemployment stats of states losing (legal) population while it hurts Texas.

And so with rising population, Texas' spending has risen, too. But it's still spending much less per capita than any blue state, and well below average.

And I'll take the relatively high sales tax any day over New York or California's even higher sales taxes PLUS high income taxes PLUS other taxes. It seems a lot of people do, in fact.

Larry said...

When markets fail, there are calls for government intervention. When government fails, those same people call for -- wait for it -- more government intervention! Why it's almost like they're True Believers in the secular god of government.

6Kings said...

Here is a perfect comparison for you regarding Perry and Obama (and Democratic policies in general)