When thinking about Texas, you might think about things like western movies, country
music, George Bush or a certain ranger who will remain nameless…
However, Texas is far more than what these overused clichés can portray...
In the last few years, Texas has been one of the most important drivers of the entire
US economy.
We’ll tell you all about it in the next video.
With almost 270,000 sq. miles, Texas is three times the size of the entire United Kingdom.
Texas is one of the biggest states in the U.S (surpassed only by Alaska).
Texas is located in the southern region known as the “Sun Belt”.
It has a coast line along the Gulf of Mexico and also borders Mexico, having a border with
the country stretching for about 1,254 miles.
The Lone Star State may strike some as a hostile wasteland.
But, in fact, Texas’s climate is formed of four seasons: the drought, the flood, the
blizzard and the tornado season.
The harsh climate has not prevented Texas from becoming the 12th largest economic power
in the world.
It is also the fastest growing state (by population) in the US, and also creates the most jobs
and is responsible for the most exports.
Since the year 2000, its population has increased by 6 million people, more than any other state.
But this is just the birth rate - additionally, more than 1.5 million Americans have moved
to this land in search of a better future.
For many Texas has become a place where some Americans go looking for a fresh start.
It’s become a popular place for people to head to if they have lost their job in their
home state.
According to data published by the U.S. census, five out the eight cities whose population
grew the most in the year 2015 are in Texas.
Those are, Houston, San Antonio, Austin and Dallas.
Additionally, around 40 percent of the 27 million of Texas residents have a Latino origin.
Furthermore, it is estimated that Hispanics will be a majority by the year 2020 which
would make Texas the world’s second largest economic Hispanic power after California,
where Hispanics are already a majority.
A nightmare for a personality such as Donald Trump’s.
In the 21st Century, Texas has led job creation in the U.S.
In the last sixteen years, employment in Texas has tripled the US average.
In the same period, Texas has created 1 million jobs more than California, even though Texas
has 12 million fewer people.
Since the beginning of the financial crisis in December 2007, Texas, which represents
around eight percent of the U.S. population, has been responsible for one out of every
four new jobs created in the country.
So, it’s no surprise that unemployment here is lower than the U.S. average and it has
been that way for the last 10 years.
Also, in the same period of time, Texas’ GDP has enjoyed a 60 percent growth while
the rest of the country has had to settle for a 35%.
Also, as I was saying earlier on, it is the state exports the most, and 52 companies from
the Fortune 500 are based here.
Having said this, it is also no surprise that more and more people consider Texas as the
true economic driver of the U.S.
And even though the economy in Texas is suffering from the fall in oil prices, very few people
believe that this state won’t keep its lead thanks to its increasingly diversified economy.
So, you might be wondering now: What exactly is so special about Texas?
Town planning regulations
For middle and low income workers, the best of the perk of Texas is housing.
These workers have access to big and affordable houses.
This happens because regulation in the state is flexible meaning it is easy to build houses
for not much more than the cost of their component parts and labour.
Between 2001 and 2008, Harris County (which includes Houston) authorized two hundred thousand
houses versus about 16,000 authorized by Santa Clara County in California (which is one of
the most regulatory-restrictive areas).
Santa Clara, by the way, is home to Silicon Valley.
With a new house build every 5 acres in Texas, in California there is only one being built
every 50 acres.
This means that, even if you make less money in Texas, you will have access to better houses
than in the rest of the country.
Universities
Texas has been able to develop one of the best University systems in the world.
Even though it only has a population of 27 million, four of its universities are situated
in the world’s top 100.
A country like Spain, with a significantly larger popular, for example, does not have
any universities in the top 100.
This education system not only creates highly qualified professionals and high quality research,
but also attracts investment from a lot of companies.
Taxes, regulations and affordable living standards.
Texas is a state where salaries provide the most value thanks to the generally lower general
prices compared to other states.
People also have more money in their pocket thanks to affordable housing prices and lower
taxes.
Texas is one of only 7 states which doesn’t have a state income tax.
As a reference point, the average family can save more than $3,500 a year in taxes alone
compared to the State of New York.
All considered, Texas is considered to be the 5th best state in the US for getting the
most from your salary.
Besides this, Texas is considered as one of the states which enjoys the most freedom (the
6th according to Fraser Institute).
This means it is significantly easier to do business in Texas than in most other states.
Further, there are fewer regulations around jobs (for example, in Nevada, Louisiana or
Florida, the requirement to qualify as an interior designer is 2,190 hours of training,
plus passing of an exam).
In Texas you don’t need to do any course to be an interior designer, you can just set
up and do it!
As a result of all this, millennials have been choosing Houston as a place to start
a business, rather than New York or Boston.
Many Americans are starting to think the rest of the US should try to imitate Texas in some
of these ways.
Not only are there the tangible economic benefits of running a state the way that Texas runs
itself, but there are also cultural benefits.
Texas’s economic boom has attracted a great deal of ethnic and cultural diversity, contributing
to cities like Austin becoming considered a popular place for musicians and all kinds
of artists.
Texas case could teach us that it is possible to fight the negative effects of globalization
and the replacement of human labour by machine automation on employment.
And they haven’t done this by protecting their companies from foreign competition,
but by reducing the obstacles faced by the state’s companies and citizens.
That is our opinion at VisualPolitik, but what do you think?
Will more of the States follow the example of Texas?
Will the Trump effect turn this historically Republican state into a Democrat one by the
year 2020?
And what about you?
What do you think about Texas, is it a place you could see yourself living or doing business?
Let us know in the comments below, and do subscribe, we put out brand new videos every
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