The “Texas Miracle” fraud: Turns out it involves taxing the poor to help the rich get richer

[DonViejo]

Yes, Texas has seen a lot of growth -- but should conservatives really be bragging about it?

ALEX PAREENE

Remember “The Texas Miracle”? It was the story of how Rick Perry was going to be president because his state, Texas, was doing so much better than all the other states. Texas was doing so well, we were told, because it was very conservative: Low taxes, light regulation, and few pesky unions. We were supposed to compare Texas to California, which, we were told, was an apocalyptic mess because it was run by liberals.

Then we sort of stopped hearing about The Texas Miracle for a while, because Rick Perry forgot how to count and it no longer seemed like he was personally responsible for managing the economy of his vast state, but conservatives still enjoy telling themselves that Texas proves that their economic policy preferences are objectively superior to those of liberals. Except, well, maybe Texas isn’t that miraculous.

At Washington Monthly, Phillip Longman argues that Texas’ growth is fueled primarily by the energy boom and by population growth. And that population growth is not happening because people from other states are fleeing to Texas to avoid high taxes and onerous regulations, but because of immigration from Mexico and a high birthrate. More importantly (and probably obviously, to people who care about such things), the spoils of the Texas miracle have not been shared equally: Economic mobility is higher in California’s major urban areas than in those of Texas. Plus: “Texas has more minimum-wage jobs than any other state, and only Mississippi exceeds it with the most minimum-wage workers per capita.” Texas is falling behind various states in terms of per capita income.

As Longman concludes:

But regardless of its sources, population growth fuels economic growth. It swells the supply and lowers the cost of labor, while at the same time adding to the demand for new products and services. As the population of Texas swelled by more than 24 percent from 2000 to 2013, so did the demand for just about everything, from houses to highways to strip malls. And this, combined with huge new flows of oil and gas dollars, plus increased trade with Mexico, favored Texas with strong job creation numbers.

more
http://www.salon.com/2014/03/07/texas_miracle_turns_out_to_involve_taxing_the_poor_to_help_the_rich_get_richer/

[atreides1]

1. Population growth?

Could population growth have been the real reason for the draconian anti-abortion clinic laws, that was passed by the Texas legislature?

They need the bodies in order to support their low taxes for businesses and well off individuals...not a far stretch, since one of the "freedoms" that the Founders of Texas were fighting for was the freedom to have slaves, something that Mexico had abolished in 1813!

Consider it a form of indentured servitude, only in this case you can leave any time you want to!

[Gothmog]

2. I live in Texas

The Texas miracle is a myth. Texas is doing well despite Perry and the GOP

[Redford]

3. Texas is very friendly to corporations but not that friendly to those that work for them

Low taxes for corporations and right to work are very attractive to big corporations. That giant sucking sound of jobs out of Illinois and California is a giant waterfall of jobs pouring into Texas right now.

The neighbors on either side of me are recent transplants from CA. Both came for better job opportunities. So, while Mr Longman purports that population growth causes economic growth, I disagree. Economic growth causes the population growth. He is correct that Texas jobs pay less but they pay better than no job at all.

[dem in texas]

4. Don't be poor in Texas

If you live in Texas and lose your job or get sick, don't expect much help. Texas is stingy with its help to the poor and disabled, near the bottom on all social service programs.