Texas and real jobs

Brooke Rollins:

Texas’ “economic freedom” stands in stark contrast to the president’s centralized plans for more government spending. In February he called for government investment in manufacturing “hubs,” $50 billion in roads, bridges and other infrastructure spending, and raising the minimum wage 24 percent to $9 per hour from $7.25.

There is a place where this big government model dominates — a state much like Texas in the diversity of its people and the wealth of its lands: California.

But, while California and Texas are similar in many ways, they differ in one crucial respect: California governs like President Obama; Texas doesn’t.

California raised taxes $50 billion last year, is implementing Obamacare by expanding Medicaid, and is scraping together $68 billion to build a government-run train from San Francisco to Los Angeles. State regulations cost small businesses $134,000 per year in compliance costs while land use restrictions push housing costs to 76 percent above the national average. California sits on the nation’s largest proven shale oil reserves, but politicians are bulking up rules to keep the oil in the ground while raising taxes on any oil actually brought to the surface. And, the U.S. Chamber of Commerce rates the Golden State 47th in terms of its lawsuit abuse climate.

Before California’s tax hike, its state and local government took 42 percent more of the people’s income than here in Texas.

Texas offers a different model.

During the last legislative session, Texas lawmakers resisted numerous calls to raise taxes and tap the economic stabilization fund, the state’s savings account. The Legislature also passed landmark “loser pays” lawsuit reform in 2011. As a result of this fiscal restraint amidst a resurgent economy, Texas’ finances today are sound, with general revenue up more than 12 percent and the economic stabilization fund boasting a balance of $8 billion.

Lone Star State lawmakers are now seeking to cut taxes to spur economic growth.

Since January 2009, the month President Obama took office, Texas produced 35 percent of all the jobs created in America, and this with 8 percent of the nation’s population. California, where 12 percent of Americans live, saw a 5 percent growth in jobs. On a per capita basis, Texas out-produced California in the jobs department by more than 10 to 1.
California has become a place that demonstrates the failures of liberalism that Obama would like to impose on the rest of the country.  When he came to Austin with one of the most liberal members of the Texas Congressional delegation it seemed clear he was going to ignore what had made Texas so much more successful.  That is too bad.  It was a learning opportunity which demonstrated that some are untrainable.


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