“Liberal economist Paul Krugman and others have argued the Texas miracle would end after the steep drop I oil prices”. Texas economic has been rapidly growing after the Civil war. Yes, oil was the catalyst for the expansion of Texas economic, however, it is not the only one that causes the expansion of Texas economic. Krugman’s and others’ argument is that the Texas miracle was only about oil prices and not the Texas model of low taxes which are no personal income tax, restrained government spending, and predictable regulations. However, Vance Ginn (Author) oppose the Krugman and others’ argument and I totally agree with that. The author starts with explaining of what the miracle was which is about Texas has created 36 of total U.S employment in a state with less than 10 percent of the U.S population, additionally, U.S could not turn positive of civilian employment until January 2015 and could not surpass Texas’ job creation until November 2015. Yes, job creation and economic growth in Texas is slower than when the oil price was the peak. Even though oil and gas activity have been slowed enormously, Texas’ unemployment rate was still remaining low. I believe that not only drop in oil price is an isolated economic that contributed to slower growth in Texas but also slower global economy. And, the author opposes Krugman’s opinion with mentioning “Free-market economies”.
While I was reading Vance’s critique, it was very interesting. It gives a lot of details of Texas economy with specifical stats. He finishes with this quote “By continuing to reduce the size and scope of government, families will prosper and refute the false claims by Krugman and others. The truth is, it’s not all about oil in Texas.”
